By analyzing existing essential indicators between Luk Fook and Diebold, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Diebold with a short position in Luk Fook. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Luk Fook has an asset utilization ratio of 112.99 percent. This indicates that the company is making $1.13 for each dollar of assets. An increasing asset utilization means that Luk Fook Holdings is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Luk or Kering is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Luk Fook's Liquidity
Luk Fook
financial leverage refers to using borrowed capital as a funding source to finance Luk Fook Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Luk Fook 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 Luk Fook's 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 Luk Fook's 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 Luk Fook's total debt and its cash.
Correlation Between Luk and Kering SA
In general, Pink Sheet analysis is a method for investors and traders to make individual buying and selling decisions. Pink Sheet correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Luk Fook together with similar or unrelated positions with a negative correlation. For example, you can also add Kering SA to your portfolio. If Kering SA is not perfectly correlated to Luk Fook it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Luk Fook, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Luk Fook and Kering SA in your portfolio? Please note if you are using this as a pair-trade strategy between Luk Fook and Kering SA, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between LKFLF and PPRUY for more information.
An Additional Perspective On Luk Fook Holdings
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me take a closer look at Luk Fook revenue. Based on the latest financial disclosure, Luk Fook Holdings reported 11.74
B of revenue. This is 64.66% higher than that of the Consumer Cyclical sector and significantly higher than that of the
Luxury Goods industry. The revenue for all United States stocks is 24.43% lower than that of Luk Fook Holdings. As for Diebold Nixdorf we see revenue of 3.79
B, which is 72.35% higher than that of the Luxury Goods
| LKFLF | 11.74 Billion |
| Sector | 2.2 Billion |
| Diebold | 3.79 Billion |
Are Luk Fook technical ratios showing a come-back?
Potential upside is down to 32.74. It may indicate a possible volatility dip. Luk Fook Holdings is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to ensure that related market timing strategies are aligned with all the expectations about Luk Fook implied risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Luk Fook's otc stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Luk Fook's otc 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.
Our Final Take On Luk Fook
Although some firms within the luxury goods industry are still a little expensive, even after the recent corrections, Luk Fook may offer a potential longer-term growth to shareholders. While some shareholders may not share our view, we believe that right now is not a good time to increase your holdings in LKFLF. 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 Luk Fook.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Luk Fook Holdings. Please refer to our
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