MTS Systems Story

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MTSC -- USA Stock  

USD 59.92  0.15  0.25%

It appears MTS Systems will continue to recover much faster as its share price surged up 0.07% today. This firm's current daily volatility is 7.41 percent, with a beta of 1.04 and an alpha of 1.62 over DOW. While some millenniums are indifferent towards measuring and control, it makes sense to go over MTS Systems. We will analyze why MTS Systems investors may still consider a stake in the business.
Published over a month ago
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Is MTS Systems (NASDAQ:MTSC) a new disruptor?
MTS Systems currently holds roughly 65.07 M in cash with 36.91 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.38. MTS Systems holds a performance score of 16 on a scale of zero to a hundred. The company secures a Beta (Market Risk) of 1.0385, which conveys a somewhat significant risk relative to the market. Let's try to break down what MTS Systems's beta means in this case. MTS Systems returns are very sensitive to returns on the market. As the market goes up or down, MTS Systems is expected to follow. Although it is essential to pay attention to MTS Systems price patterns, it is also good to be reasonable about what you can do with equity historical price patterns. Our philosophy towards estimating future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if MTS Systems expected return of 1.77 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use MTS Systems information ratio, value at risk, as well as the relationship between the Value At Risk and expected short fall to analyze future returns on MTS Systems.
Investing in MTS Systems, 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 MTS Systems 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, frequently view the market will even out over time. This tendency of MTS Systems' stock 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. Please use the tools below to analyze the current value of MTS Systems in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as MTS Systems. Your research has to be compared to or analyzed against MTS Systems' peers to derive any actionable benefits. When done correctly, MTS Systems' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in MTS Systems.

How important is MTS Systems's Liquidity

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

How MTS Systems utilizes its cash?

To perform a cash flow analysis of MTS Systems, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash MTS Systems is receiving and how much cash it distributes out in a given period. The MTS Systems cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. MTS Systems Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 71.86 Million

MTS Systems Correlation with Peers

Investors in MTS Systems can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in MTS Systems. Diversification will allow for the same portfolio return with reduced risk. The correlation table of MTS Systems and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities MTS Systems 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 MTS Systems for more details

MTS Systems exotic insider transaction detected

Legal trades by MTS Systems insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
MTS Systems insider trading alert for general transaction of stock option (right to buy) by Todd Klemmensen, SVP GC and Corp. Sec., on 28th of December 2020. This event was filed by Mts Systems Corp with SEC on 2020-12-28. Statement of changes in beneficial ownership - SEC Form 4. Todd Klemmensen currently serves as senior vice president general counsel, secretary of MTS Systems [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another Deeper Perspective

MTS Systems is not too volatile given 1 month investment horizon. MTS Systems has Sharpe Ratio of 0.24, which conveys that the firm had 0.24% of return per unit of standard deviation over the last month. Our standpoint towards estimating the risk of a stock is to use both market data as well as company specific technical data. We are able to interpolate and collect twenty-one different technical indicators, which can help you to evaluate if expected returns of 1.77% are justified by taking the suggested risk. Use MTS Systems Market Risk Adjusted Performance of 1.67, risk adjusted performance of 0.2741, and Mean Deviation of 3.66 to evaluate company specific risk that cannot be diversified away.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

MTS Systems showing appearance of lower volatility

MTS Systems current standard deviation builds up over 7.3. MTS Systems is displaying above-average volatility over the selected time horizon. Investors should scrutinize MTS Systems independently to ensure intended market timing strategies are aligned with expectations about MTS Systems volatility.

The Current Takeaway on MTS Systems Investment

Whereas many of the other players under the scientific & technical instruments industry are still a bit expensive, MTS Systems may offer a potential longer-term growth to investors. On the whole, as of the 14th of December 2020, we believe that MTS Systems is currently overvalued with below average probability of distress in the next two years. However, our ongoing 30 days recommendation on the company is Buy.

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 Achuva Shats do not own shares of MTS Systems. Please refer to our Terms of Use for any information regarding our disclosure principles.

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