Infrastructure Story

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IEA -- USA Stock  

USD 5.13  1.29  33.59%

As many investors are getting excited about industrials space, Infrastructure and Dycom Industries may be going in opposite directions. We are going to analyze some of the competitive aspects of both Infrastructure and Dycom.
Published over two weeks ago
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What is our outlook on Infrastructure (NASDAQ:IEA) and Dycom (NYSE:DY)?
By analyzing existing basic indicators between Infrastructure and Dycom, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Dycom with a short position in Infrastructure. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Infrastructure has an asset utilization ratio of 663.26 percent. This suggests that the company is making $6.63 for each dollar of assets. An increasing asset utilization means that Infrastructure And Energy is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Infrastructure or Dycom is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Infrastructure's Liquidity

Infrastructure financial leverage refers to using borrowed capital as a funding source to finance Infrastructure And Energy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Infrastructure financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Infrastructure's total debt and its cash.

Correlation Between Infrastructure and Dycom Industries

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Infrastructure together with similar or unrelated positions with a negative correlation. For example, you can also add Dycom Industries to your portfolio. If Dycom Industries is not perfectly correlated to Infrastructure it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Infrastructure for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between IEA and DY for more information.

Bona fide gift to Terence Montgomery of 21500 shares of Infrastructure subject to Section 16

Legal trades by Infrastructure insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Infrastructure insider trading alert for gift of common stock par value $0.0001 per share by Terence Montgomery, the corporate stakeholder, on 10th of September 2020. This event was filed by Infrastructure Energy Alt with SEC on 2020-09-10. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Infrastructure Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me take a closer look at Infrastructure revenue. Based on the latest financial disclosure, Infrastructure And Energy reported 1.78 B of revenue. This is 49.12% lower than that of the Industrials sector and 68.31% lower than that of the Engineering & Construction industry. The revenue for all United States stocks is 81.13% higher than that of Infrastructure. As for Dycom Industries we see revenue of 3.26 B, which is 41.96% lower than that of the Engineering & Construction

Infrastructure1.78 Billion
Sector3.5 Billion
Dycom3.26 Billion
1.8 B
Infrastructure
3.5 B
Sector
3.3 B
Dycom

Our take on today Infrastructure rise

The expected short fall is down to -6.84 as of today. Infrastructure And Energy is displaying above-average volatility over the selected time horizon. Investors should scrutinize Infrastructure And Energy independently to ensure intended market timing strategies are aligned with expectations about Infrastructure volatility.

Our Conclusion on Infrastructure

Whereas few other entities within the engineering & construction industry are still a little expensive, even after the recent corrections, Infrastructure may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither acquire new shares of Infrastructure nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Infrastructure.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Infrastructure And Energy. Please refer to our Terms of Use for any information regarding our disclosure principles.

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