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By Vlad Skutelnik

January 11, 2019

In this article I will break down 4 Food Products isntruments to have in your portfolio in February 2019. I will cover Paradise, Industrias Bachoco S A B de C V, Cosan Limited, and Farmer Bros Co
The Top 4 Food Products stocks to own in February 2019

This list of potential positions covers USA Equities from Food Products industry as classified by Fama & French. Fama and French focuses on testing asset pricing under different economic assumptions in USA. Please note, we provide buy hold or sell recommendation only in the context of selected investment horizon assuming investor has average attitude towards taking risk. Please also consider using Portfolio Positions Ratings and Equity Ratings tools to further calibrate your research.


Paradise (PARF)

The company has Profit Margin (PM) of 2.84 % which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is normal as compared to the sector avarege. Similarly, it shows Operating Margin (OM) of 4.89 % which suggests for every 100 dollars of sales it generated a net operating income of 0.05. The firm currently falls under 'Micro-Cap' category with current market capitalization of 17.15M. Paradise holds recent Real Value of $31.75 per share. The prevailing price of the company is $33.0. At this time the company appears to be fairly valued. Macroaxis determines value of Paradise from analyzing the company fundamentals such as Shares Outstanding of 519.6K, Operating Margin of 4.89% and Return On Equity of 2.84% as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support investing in undervalued entities and to dispose of overvalued entities since at some point stocks prices and their ongoing real values will merge together.

Industrias Bachoco S A B de C V (IBA)

The company has Net Profit Margin of 6.96 % which may imply that it executes well on its competitive polices and has a good control over its expenditures and variable costs. This is very large. In the same way, it shows Net Operating Margin of 6.68 % which entails that for every 100 dollars of revenue it generated 0.07 of operating income. The firm currently falls under 'Mid-Cap' category with total capitalization of 2.33B.
Total Debt
Industrias Bachoco competes with Bunge, Archer Daniels, Fresh Del, BrasilAgro Companhia, Pingtan Marine, Limoneira, Landec, and Cresud Sociedad. Industrias Bachoco, S.A.B. de C.V., through its subsidiaries, operates as a poultry producer in Mexico and the United States. Industrias Bachoco, S.A.B. de C.V. is a subsidiary of Robinson Bours Family Trust. Industrias Bachoco operates under Farm Products classification in USA and is traded on BATS Exchange. It employs 27765 people.

Cosan Limited (CZZ)

The company has Net Profit Margin of 3.22 % which may imply that it executes well on its competitive polices and has a good control over its expenditures and variable costs. This is considered to be average in the sector. In the same way, it shows Net Operating Margin of 30.28 % which entails that for every 100 dollars of revenue it generated 0.3 of operating income. The firm currently falls under 'Mid-Cap' category with total capitalization of 2.42B. Cosan Limited shows prevailing Real Value of $9.738 per share. The current price of the firm is $10.58. At this time the firm appears to be overvalued. Macroaxis approximates value of Cosan Limited from analyzing the firm fundamentals such as Profit Margin of 3.22%, Return On Equity of 6.83% and Current Valuation of 9.57B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point assets prices and their ongoing real values will blend. Cosan competes with Dominion Energy, FirstEnergy Corp, Just Energy, AES, Avista, Brookfield Infrastructure, Black Hills, Companhia Energtica, and Cosan. Cosan Limited, together with its subsidiaries, engages in fuel and natural gas distribution, logistics, lubricant, sugar and ethanol businesses primarily in Brazil and internationally. The company was incorporated in 2007 and is based in So Paulo, Brazil. Cosan operates under Utilities - Diversified classification in USA and is traded on BATS Exchange.

Farmer Bros Co (FARM)

About 37.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.86. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity recorded loss per share of 1.34. The entity last dividend was issued on 2011-01-26. The firm had 10:1 split on 2004-05-11. This firm currently falls under 'Small-Cap' category with current market capitalization of 413.85M.
Total Debt
Farmer Bros competes with Kellogg, Dean Foods, Lamb Weston, DAVIDsTEA, Farmmi, BG Foods, Conagra Brands, and Campbell Soup. Co. engages in the manufacture, wholesale, and distribution of coffee, tea, and culinary products in the United States. Co. was founded in 1912 and is headquartered in Northlake, Texas. Farmer Bros operates under Packaged Foods classification in USA and is traded on BATS Exchange. It employs 1500 people.

Current 4 Food Products Recommendations

Competition Technical Indicators

Mean
Deviation
Jensen
Alpha
Sortino
Ratio
Treynor
Ratio
Semi
Deviation
Information
Ratio
Expected
Shortfall
Potential
Upside
Value
At Risk
Maximum
Drawdown
 0.88 (0.09)  0.00 (0.21)  0.00 (0.0444)  0.00  1.32 (2.33)  6.48 
 2.52 (0.63)  0.00 (1.14)  0.00 (0.19)  0.00  4.98 (4.68)  11.12 
 1.27 (0.36)  0.00  3.62  0.00 (0.16)  0.00  2.45 (2.81)  10.22 
 4.35 (0.66)  0.00 (0.43)  0.00 (0.12)  0.00  8.33 (9.92)  21.67 
 2.17 (0.37)  0.00  19.21  0.00 (0.09)  0.00  6.51 (6.08)  14.43 
 1.15  0.03  0.05  0.17  1.52  0.05 (1.18)  2.34 (2.47)  5.78 
 1.66 (0.11)  0.00 (0.70)  0.00 (0.0277)  0.00  3.28 (3.45)  9.71 
 2.11 (0.85)  0.00 (2.53)  0.00 (0.23)  0.00  2.00 (5.68)  18.54 
 1.49 (0.21)  0.00 (11.20)  0.00 (0.07)  0.00  2.59 (3.73)  11.98 
 2.48  0.26  0.08  1.04  3.62  0.08 (2.62)  6.11 (6.21)  17.45 

About Contributor

Vlad Skutelnik
   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 as 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 Macroaxis. Please refer to our Terms of Use for any information regarding our disclosure principles.

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