Will stockholders trade more of Jerash Holdings in July?

40% of stocks are less volatile than Jerash, and 99% of all traded equity instruments are projected to make higher returns than the company over the 60 days investment horizon. While some risk-loving traders are indifferent towards current market volatility, it is reasonable to concentrate on the risk of investing in Jerash Holdings. We will cover the possibilities of Jerash Holdings' current volatility to continue through July. The current above-average Jerash Holdings' volatility may impact the value of the stock as we project Jerash Holdings as currently undervalued. The real value, according to our calculations, is approaching 7.15 per share.
Published over a year ago
View all stories for Jerash Holdings | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Michael Smolkin

Jerash Holdings currently holds roughly 33.6 M in cash with 9.37 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.72.
Volatility is a rate at which the price of Jerash Holdings 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 Jerash Holdings may increase or decrease. In other words, similar to Jerash's beta indicator, it measures the risk of Jerash Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of Jerash Holdings 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 Jerash Holdings's Liquidity

Jerash Holdings financial leverage refers to using borrowed capital as a funding source to finance Jerash Holdings US ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Jerash Holdings 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. Financial leverage can amplify the potential profits to Jerash Holdings' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Jerash Holdings' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Jerash Holdings's total debt and its cash.

Jerash Holdings Volatility Drivers

Jerash Holdings unsystematic risk is unique to Jerash Holdings US 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 Jerash Holdings you can also buy Malibu Boats. You can also mitigate this risk by investing in the consumer discretionary 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 Jerash Holdings 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 Jerash Holdings income statement and balance sheet. Here are more details about Jerash volatility.
-0.840.690.590.97-0.780.70.970.93-0.290.55-0.110.350.670.640.71-0.67
-0.84-0.5-0.29-0.790.43-0.33-0.74-0.770.21-0.3-0.220.01-0.93-0.92-0.90.65
0.69-0.50.170.68-0.490.50.690.760.050.43-0.220.070.510.450.62-0.43
0.59-0.290.170.61-0.80.630.620.37-0.590.56-0.250.57-0.01-0.05-0.06-0.19
0.97-0.790.680.61-0.810.810.970.89-0.430.56-0.230.440.60.60.64-0.73
-0.780.43-0.49-0.8-0.81-0.86-0.83-0.70.48-0.720.45-0.72-0.13-0.09-0.170.38
0.7-0.330.50.630.81-0.860.80.66-0.510.65-0.590.710.090.110.14-0.57
0.97-0.740.690.620.97-0.830.80.94-0.280.69-0.230.420.540.520.59-0.7
0.93-0.770.760.370.89-0.70.660.94-0.010.65-0.160.210.680.620.74-0.63
-0.290.210.05-0.59-0.430.48-0.51-0.28-0.01-0.090.37-0.690.05-0.060.110.38
0.55-0.30.430.560.56-0.720.650.690.65-0.09-0.440.240.120.060.13-0.21
-0.11-0.22-0.22-0.25-0.230.45-0.59-0.23-0.160.37-0.44-0.60.30.30.240.01
0.350.010.070.570.44-0.720.710.420.21-0.690.24-0.6-0.3-0.25-0.25-0.34
0.67-0.930.51-0.010.6-0.130.090.540.680.050.120.3-0.30.980.98-0.52
0.64-0.920.45-0.050.6-0.090.110.520.62-0.060.060.3-0.250.980.96-0.63
0.71-0.90.62-0.060.64-0.170.140.590.740.110.130.24-0.250.980.96-0.57
-0.670.65-0.43-0.19-0.730.38-0.57-0.7-0.630.38-0.210.01-0.34-0.52-0.63-0.57
Click cells to compare fundamentals

Another Deeper Perspective

This firm reported the previous year's revenue of 136.17 M. Net Income was 8.73 M with profit before overhead, payroll, taxes, and interest of 16 M.

Will Jerash Holdings stockholders go bananas after another drop?

Current Risk Adjusted Performance is up to -0.04. Price may drop again. Jerash Holdings exhibits very low volatility with skewness of 1.52 and kurtosis of 9.83. However, we advise investors to further study Jerash Holdings technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Jerash Holdings' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Jerash Holdings' 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.

Jerash Holdings Implied Volatility

Jerash Holdings' implied volatility exposes the market's sentiment of Jerash Holdings stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Jerash Holdings' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Jerash Holdings stock will not fluctuate a lot when Jerash Holdings' options are near their expiration.

Our Conclusion on Jerash Holdings

While some firms in the apparel manufacturing industry are either recovering or due for a correction, Jerash Holdings may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Jerash as the current risk-reward utility is not appealing enough. 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 Jerash Holdings.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

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 Vlad Skutelnik do not own shares of Jerash Holdings US. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com