Kirklands Story

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Despite fairly abnormal essential indicators, Kirklands demonstrated solid returns over the last few months and may actually be approaching a breakup point. Kirklands current chance of distress is under 29 percent. Will traders continue to be optimistic, or should we expect a sell-off?
Published over three weeks ago
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Does Kirklands (NASDAQ:KIRK) have strong essential indicators based on the recent surge?
Kirklands holds a performance score of 18 on a scale of zero to a hundred. The company secures a Beta (Market Risk) of 2.1231, which conveys a somewhat significant risk relative to the market. Let's try to break down what Kirklands'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, Kirklands will likely underperform. Although it is essential to pay attention to Kirklands price patterns, it is also good to be reasonable about what you can do with equity historical price patterns. Our philosophy towards estimating future potential of any stock is to look not only at its past charts but also at the business as a whole, including all available fundamental and technical indicators. To evaluate if Kirklands expected return of 3.67 will be sustainable into the future, we have found twenty-seven different technical indicators, which can help you to check if the expected returns are sustainable. Use Kirklands value at risk, as well as the relationship between the skewness and day median price to analyze future returns on Kirklands.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Kirklands income statement, its balance sheet, and the statement of cash flows. Potential Kirklands investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Kirklands investors may use each financial statement separately, they are all related. The changes in Kirklands's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Kirklands's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Kirklands fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Kirklands performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Kirklands shares is the value that is considered the true value of the share. If the intrinsic value Kirklands is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Kirklands. Please read more on our fundamental analysis page.

How important is Kirklands's Liquidity

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

How Kirklands utilizes its cash?

To perform a cash flow analysis of Kirklands, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Kirklands is receiving and how much cash it distributes out in a given period. The Kirklands cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Kirklands Net Cash Flow from Operations is decreasing as compared to previous years. The last year's value of Net Cash Flow from Operations was reported at (8.27 Million)

Kirklands Gross Profit

Kirklands Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Kirklands previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Kirklands Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

An Additional Perspective On Kirklands

The recent price surge of Kirklands may raise some interest from traders. The stock closed today at a share price of 7.79 on 3,543,535 in trading volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in October. The stock standard deviation of daily returns for 30 days investing horizon is currently 13.6. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Kirklands partners.

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Kirklands has an asset utilization ratio of 234.42 percent. This signifies that the company is making $2.34 for each dollar of assets. An increasing asset utilization means that Kirklands is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
157.3 M
Assets Non Current
202.2 M
Current Assets157.28 Million43.42
Assets Non Current202.15 Million55.81
Tax Assets2.79 Million0.77

Are you still uncertain about Kirklands?

Recent coefficient of variation is at 357.74. Kirklands is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about Kirklands implied risk.

The Current Takeaway on Kirklands Investment

Although some other entities in the specialty retail industry are either recovering or due for a correction, Kirklands may not be performing as strong as the other in terms of long-term growth potentials. In closing, as of the 3rd of September 2020, we believe that Kirklands is currently overvalued with low odds of distress in the next two years. Our primary 30 days buy-hold-sell recommendation on the firm is Hold.

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 Ellen Johnson do not own shares of Kirklands. Please refer to our Terms of Use for any information regarding our disclosure principles.

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