Movado Story

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MOV -- USA Stock  

USD 10.25  0.06  0.58%

Movado Cash and Equivalents Turnover is fairly stable at the moment as compared to the past year. Movado reported Cash and Equivalents Turnover of 3.73 in 2019. Cash Flow Per Share is likely to climb to 1.72 in 2020, whereas Average Assets are likely to drop slightly above 786.8 M in 2020. Today's short post will focus on Movado as your potential position. We will recap the question of why sophisticated investors should continue to be confident in Movado outlook.
Published over three weeks ago
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What can we learn from Movado (NYSE:MOV) latest price fluctuation
Movado Group has a beta of 1.5507. Let's try to break down what Movado's beta means in this case. As returns on the market increase, Movado returns are expected to increase less than the market. However, during the bear market, the loss on holding Movado will be expected to be smaller as well. The beta indicator helps investors understand whether Movado moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Movado deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Movado Group. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Movado

How important is Movado's Liquidity

Movado financial leverage refers to using borrowed capital as a funding source to finance Movado Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Movado 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 Movado's total debt and its cash.

How Movado utilizes its cash?

To perform a cash flow analysis of Movado, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Movado is receiving and how much cash it distributes out in a given period. The Movado cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Movado Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Movado reported Net Cash Flow from Operations of 32.07 Million in 2019

Is Movado valued fairly by the market?

The modest gains experienced by current holders of Movado Group may encourage sophisticated investors to take a closer look at the firm as it closed today at a share price of 10.79 on 217,807 in trading volume. The company management teams have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in July. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.21. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Movado Group partners.

Returns Breakdown

Return on Investment7.62
Return on Assets0.0471
Return on Equity0.0723
Return Capital0.13
Return on Sales0.0798

Is Movado fall permanent?

Kurtosis is down to 0.39. It may cause a possible volatility fall. Movado Group shows above-average downside volatility for the selected time horizon. We advise investors to inspect Movado Group further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Movado future alpha.

Our Takeaway on Movado Investment

While many other companies in the luxury goods industry are either recovering or due for a correction, Movado may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Movado valuation and our trade advice on Movado is due to the recent market swings and your selection of investing horizon. 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 Movado.

About Contributor

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 Movado Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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