Intrepid Story

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IPI -- USA Stock  

USD 25.33  0.82  3.35%

Intrepid Potash is generating 1.767% of daily returns assuming volatility of 6.9034% on return distribution over 60 days investment horizon. Although many risk-takers are getting more into basic materials space, some of us are not very happy with Intrepid Potash's current volatility. We will cover the possibilities of Intrepid Potash's current volatility to continue through February. The current Intrepid risk factors may impact the value of the stock as we estimate Intrepid Potash as currently overvalued. The real value is approaching 14.34 per share.
Published over two weeks ago
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Intrepid Potash (NYSE:IPI) high volatility trend continues
Intrepid Potash has roughly 9.26 M in cash with 30.25 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.71. Intrepid Potash holds a performance score of 18 on a scale of zero to a hundred. The company retains a Market Volatility (i.e. Beta) of -0.853, which attests to possible diversification benefits within a given portfolio. Let's try to break down what Intrepid's beta means in this case. As the market becomes more bullish, returns on owning Intrepid Potash are expected to decrease slowly. On the other hand, during market turmoil, Intrepid Potash is expected to outperform it slightly. Although it is essential to pay attention to Intrepid Potash current price history, it is also good to be reasonable about what you can do with equity current price movements. Our philosophy towards determining future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if Intrepid Potash expected return of 1.77 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use Intrepid Potash information ratio, value at risk, as well as the relationship between the Value At Risk and expected short fall to analyze future returns on Intrepid Potash.
Volatility is a rate at which the price of Intrepid Potash or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Intrepid Potash may increase or decrease. In other words, similar to Intrepid's beta indicator, it measures the risk of Intrepid Potash and helps estimate the fluctuations that may happen in a short period of time. So if prices of Intrepid Potash fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is Intrepid Potash's Liquidity

Intrepid Potash financial leverage refers to using borrowed capital as a funding source to finance Intrepid Potash ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Intrepid Potash 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 Intrepid Potash's total debt and its cash.

How Intrepid utilizes its cash?

To perform a cash flow analysis of Intrepid Potash, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Intrepid Potash is receiving and how much cash it distributes out in a given period. The Intrepid Potash cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Intrepid Potash Net Cash Flow from Operations is most likely to decrease significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 44.44 Million

Intrepid Potash Volatility Drivers

Intrepid Potash unsystematic risk is unique to Intrepid Potash and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Intrepid Potash you can also buy American Vanguard. You can also mitigate this risk by investing in the agricultural inputs sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Intrepid Potash important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Intrepid Potash income statement and balance sheet. Here are more details about Intrepid volatility.