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Are Macys (NYSE:M) stakeholders starting to panic?
By Ellen Johnson | Macroaxis Story |
It appears without question that Macys may not recover as fast as we have hopped for as its price went down 0.89% today. The entity's current daily volatility is 4.31 percent, with a beta of 0.02 and an alpha of 0.24 over DOW. As many of us are getting excited about new market fluctuations it is important to summarize Macys based on its technical indicators. We will evaluate why recent Macys price moves suggest a bounce in December.
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Reviewed by Vlad Skutelnik
Macys Inc has accumulated roughly 1.4 B in cash with 1.25 B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.5. We provide investment recommendation to complement the last-minute expert consensus on Macys Inc. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the entity's potential to grow using all technical and fundamental data available at the time.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Macys. Your research has to be compared to or analyzed against Macys' peers to derive any actionable benefits. When done correctly, Macys' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Macys Inc.
Investing in Macys, 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 Macys 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, anticipate that the market will even out over time. This tendency of Macys' 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.
How important is Macys's Liquidity
Macys financial leverage refers to using borrowed capital as a funding source to finance Macys Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Macys 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 Macys' 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 Macys' 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 Macys's total debt and its cash.
Macys Gross Profit
Macys Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Macys 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 Macys Gross Profit growth over the last 10 years. Please check Macys' gross profit and other fundamental indicators for more details.
Macys Correlation with Peers
Investors in Macys can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Macys Inc. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Macys and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Macys 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 Macys for more details
Breaking it down
Macys appears to be slightly risky, given 1 month investment horizon. Macys Inc has Sharpe Ratio of 0.15, which conveys that the firm had 0.15% of return per unit of risk over the last month. 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. By analyzing Macys Inc technical indicators you can presently evaluate if the expected return of 0.66% is justified by implied risk. Please exercise Macys Inc Mean Deviation of 3.04, downside deviation of 3.54, and Risk Adjusted Performance of 0.0814 to check out if our risk estimates are consistent with your expectations.
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