Kirklands Story

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KIRK -- USA Stock  

USD 19.38  1.20  5.83%

It feels like Kirklands may not recover as fast as we have hopped for as its price went down 2.08% today. This firm's current daily volatility is 5.91 percent, with a beta of 1.41 and an alpha of 0.98 over DOW. As many traders getting excited about recent market fluctuations it is important to examine Kirklands based on its critical indicators. We will analyze why it could be a much better year for Kirklands shareholders.
Published over a month ago
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Are Kirklands (NASDAQ:KIRK) traders starting to panic?
Kirklands currently holds roughly 27.57 M in cash with 26.09 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.93. Our investment recommendation tool can cross-verify current analyst consensus on Kirklands and to analyze the entity potential to grow in the current economic cycle.
Investing in Kirklands, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Kirklands along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Kirklands' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Kirklands in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Kirklands. Your research has to be compared to or analyzed against Kirklands' peers to derive any actionable benefits. When done correctly, Kirklands' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Kirklands.

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 44.49 Million

Kirklands Correlation with Peers

Investors in Kirklands can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Kirklands. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Kirklands and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Kirklands is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Kirklands for more details

An Additional Perspective On Kirklands

Kirklands is risky given 1 month investment horizon. Kirklands has Sharpe Ratio of 0.24, which conveys that the firm had 0.24% of return per unit of risk over the last month. Our standpoint towards estimating the risk of a stock is to use both market data as well as company specific technical data. We were able to break down and interpolate twenty-one different technical indicators, which can help you to evaluate if expected returns of 1.43% are justified by taking the suggested risk. Use Kirklands Downside Deviation of 6.33, mean deviation of 5.03, and Risk Adjusted Performance of 0.221 to evaluate company specific risk that cannot be diversified away.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Another small plunge for Kirklands

Recent maximum drawdown is at 24.59. As of the 3rd of December, Kirklands secures the Risk Adjusted Performance of 0.221, downside deviation of 6.33, and Mean Deviation of 5.03. Kirklands technical analysis lets you operate historical price patterns with an objective to determine a pattern that forecasts the direction of the firm's future prices. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to break down and interpolate nineteen technical drivers for Kirklands, which can be compared to its peers in the industry. Please verify Kirklands variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Kirklands is priced some-what accurately, providing market reflects its recent price of 15.56 per share. Given that Kirklands has jensen alpha of 0.9821, we recommend you to check Kirklands's last-minute market performance to make sure the company can sustain itself at a future point.

The Current Takeaway on Kirklands Investment

Although few 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. While some traders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 Kirklands.

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 Kirklands. Please refer to our Terms of Use for any information regarding our disclosure principles.

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