Loop Industries Stock Story


USD 7.13  0.13  1.86%   

Dupont Denemours would continue recover faster as its shares surged to 1.18 percent against Loop Industries's 0.6061%. As many rational traders are trying to avoid basic materials space, it makes sense to recap Loop Industries a little further and understand how it stands against Dupont Denemours and other similar entities. We are going to focus on some of the competitive aspects of both Loop Industries and Dupont.
Published over three weeks ago
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Should we be obtaining Dupont or Loop Industries?

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.

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. Please check the breakdown between Loop Industries's total debt and its cash.

How does Loop Industries utilize its cash?

To perform a cash flow analysis of Loop Industries, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Loop Industries is receiving and how much cash it distributes out in a given period. The Loop Industries cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Loop Industries Net Cash Flow from Operations is very stable at the moment as compared to the past year. Loop Industries reported last year Net Cash Flow from Operations of (42.98 Million)

A Deeper look at Loop Industries

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

4.5 B
16.9 B
LOOP86.66 Million0.4
Sector4.45 Billion20.75
DD16.91 Billion78.85

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.

Editorial Staff

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 Terms of Use for any information regarding our disclosure principles.

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