By analyzing existing basic indicators between Loop Industries and Dupont, 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 Dupont with a short position in Loop Industries. 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. Loop Industries has an asset utilization ratio of 43.49 percent. This suggests that the company is making $0.43 for each dollar of assets. An increasing asset utilization means that Loop Industries is more efficient with each dollar of assets it utilizes for everyday operations.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Loop Industries. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Loop Industries, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Loop Industries's Liquidity
Loop Industries
financial leverage refers to using borrowed capital as a funding source to finance Loop Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Loop Industries 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 Loop Industries' 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 Loop Industries' 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 Loop Industries's total debt and its cash.
Loop Industries Gross Profit
Loop Industries Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Loop Industries 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 Loop Industries Gross Profit growth over the last 10 years. Please check Loop Industries'
gross profit and other
fundamental indicators for more details.
A Deeper look at Loop
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 Loop Industries revenue. Based on the latest financial disclosure, Loop Industries reported 86.66
M of revenue. This is 98.9% lower than that of the Basic Materials sector and 98.05% lower than that of the
Specialty Chemicals industry. The revenue for all United States stocks is 99.08% higher than that of the firm. As for Dupont Denemours we see revenue of 16.91
B, which is 280.0% higher than that of the Specialty Chemicals
| LOOP | 86.66 Million | 0.4 |
| Sector | 4.45 Billion | 20.75 |
| DD | 16.91 Billion | 78.85 |
Possible August reversion of Loop Industries?
Recent potential upside is at 7.22. Loop Industries exhibits very low volatility with skewness of 0.14 and kurtosis of -0.01. However, we advise investors to further study Loop Industries 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 Loop Industries' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Loop Industries' 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.
Loop Industries Implied Volatility
Loop Industries' implied volatility exposes the market's sentiment of Loop Industries stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Loop Industries' 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 Loop Industries stock will not fluctuate a lot when Loop Industries' options are near their expiration.
Our Bottom Line On Loop Industries
Although some other companies within the specialty chemicals industry are still a little expensive, even after the recent corrections, Loop Industries may offer a potential longer-term growth to insiders. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither take over new shares of Loop Industries nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Loop Industries.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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 Gabriel Shpitalnik do not own shares of Loop Industries. Please refer to our
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