J Jill Story

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JILL -- USA Stock  

USD 8.30  0.34  4.27%

J Jill Inc is scheduled to announce its earnings today. The stock continues to experience an active upward rally. As many millenniums are trying to avoid consumer cyclical space, it makes sense to summarize J Jill Inc a little further and try to understand its current market patterns. Let's summarize the possibilities of J Jill maintaining its debt level in April.
Published over three weeks ago
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How much will J Jill owe in April?
The entity currently holds 454.17 M in liabilities. The firm has a current ratio of 0.74, indicating that it has a negative working capital and may not be able to pay financial obligations when due.
J Jill holds a performance score of 9 on a scale of zero to a hundred. The firm retains a Market Volatility (i.e. Beta) of 2.4112, which attests to a somewhat significant risk relative to the market. Let's try to break down what J Jill's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, J Jill will likely underperform. Although it is vital to follow J Jill Inc current price history, it is good to be conservative about what you can do with the information regarding equity current price movements. Our approach into 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 J Jill Inc expected return of 1.41 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use J Jill Inc downside variance, and the relationship between the sortino ratio and accumulation distribution to analyze future returns on J Jill Inc.
J Jill financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of J Jill, including all of J Jill's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of J Jill assets, the company is considered highly leveraged. Understanding the composition and structure of overall J Jill debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding J Jill Total Liabilities

J Jill Inc liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. J Jill Inc has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on J Jill balance sheet include debt obligations and money owed to different J Jill vendors, workers, and loan providers. Below is the chart of J Jill short long-term liabilities accounts currently reported on its balance sheet.
You can use J Jill Inc financial leverage analysis tool to get a better grip on understanding its financial position

How important is J Jill's Liquidity

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

An Additional Perspective On J Jill Inc

The new price hike of J Jill may raise some interest from stakeholders. The stock closed today at a share price of 7.82 on 5,024,425 in trading volume. The company management teams may have good odds in positioning the entity resources to exploit market volatility in April. The stock standard deviation of daily returns for 30 days investing horizon is currently 11.2. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the J Jill Inc partners.

Liabilities Breakdown

Tax Liabilities
106.5 M
Current Liabilities
398.9 M
Long-Term Liabilities
Total Liabilities505.43 Million
Current Liabilities106.54 Million
Long-Term Liabilities398.89 Million
Tax Liabilities58.97 Million

Will J Jill growth be viable after the hike?

Maximum drawdown is down to 90.03. It may denote a possible volatility pull down. J Jill Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize J Jill Inc independently to ensure intended market timing strategies are aligned with expectations about J Jill volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure J Jill's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact J Jill's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

The Bottom Line

While some firms within the apparel retail industry are still a little expensive, even after the recent corrections, J Jill may offer a potential longer-term growth to stakeholders. To conclude, as of the 16th of March 2021, our latest 30 days buy-hold-sell recommendation on the company is Cautious Hold. We believe J Jill is currently overvalued with below average probability of distress for the next two years.

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 J Jill Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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