Lee Enterprises is OVERVALUED at 16.84 per share with modest projections ahead.
Lee Enterprises appears to be somewhat reliable, given 3 months investment horizon.
Lee Enterprises has Sharpe Ratio of 0.0921, which conveys that the firm had 0.0921% of return per unit of risk over the last 3 months. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for Lee Enterprises, which you can use to evaluate the future volatility of the firm. Please exercise Lee Enterprises' Mean Deviation of 2.37,
risk adjusted performance of 0.093, and Downside Deviation of 2.33 to check out if our risk estimates are consistent with your expectations.
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 Lee Enterprises income statement, its balance sheet, and the statement of cash flows. Potential Lee Enterprises investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Lee Enterprises investors may use each financial statement separately, they are all related. The changes in Lee Enterprises's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Lee Enterprises'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 Lee Enterprises
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Lee Enterprises performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Lee Enterprises shares is the value that is considered the true value of the share. If
the intrinsic value of Lee 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 Lee Enterprises. Please read more on our
fundamental analysis page.
How effective is Lee Enterprises in utilizing its assets?
Lee Enterprises Incorporated reports assets on its Balance Sheet. It represents the amount of Lee resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Lee Enterprises aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Publishing space. To get a better handle on how balance sheet or income statements item affect Lee volatility, please check the breakdown of all its
fundamentals.
Are Lee Enterprises Earnings Expected to grow?
The
future earnings power of Lee Enterprises involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Lee Enterprises factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Lee Enterprises
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Lee
expected earnings.
Lee Enterprises Gross Profit
Lee Enterprises Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Lee Enterprises 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 Lee Enterprises Gross Profit growth over the last 10 years. Please check Lee Enterprises'
gross profit and other
fundamental indicators for more details.
What is driving Lee Enterprises Investor Appetite?
The latest price surge of Lee Enterprises may encourage shareholders to take a closer look at the firm as it is trading at a share price of
30.01 on
97,736 in trading volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in
January. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.38. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Lee Enterprises partners.
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Lee Enterprises has an asset utilization ratio of 112.97 percent. This indicates that the company is making $1.13 for each dollar of assets. An increasing asset utilization means that Lee Enterprises is more efficient with each dollar of assets it utilizes for everyday operations.
| Assets Non Current565.1 M | Goodwill395.7 M | |
| Current Assets | 69.75 Million | 6.71 |
| Assets Non Current | 565.08 Million | 54.39 |
| Goodwill | 395.71 Million | 38.09 |
| Tax Assets | 8.42 Million | 0.81 |
Will Lee Enterprises growth be viable after the surge?
The potential upside is down to 5.37 as of today. Lee Enterprises currently demonstrates below-average downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.37. However, we advise investors to further question Lee Enterprises expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lee Enterprises' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lee Enterprises' 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.
Lee Enterprises Implied Volatility
Lee Enterprises' implied volatility exposes the market's sentiment of Lee Enterprises stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Lee Enterprises' 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 Lee Enterprises stock will not fluctuate a lot when Lee Enterprises' options are near their expiration.
Our Final Take On Lee Enterprises
Although some other companies within the publishing industry are still a little expensive, even after the recent corrections, Lee Enterprises may offer a potential longer-term growth to shareholders. To conclude, as of the 11th of December 2021, our present 90 days buy-sell recommendation on the firm is
Strong Buy. However, we believe Lee Enterprises is
overvalued with
below average chance of bankruptcy for the next two years.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile 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 Lee Enterprises Incorporated. Please refer to our
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