Pfsweb Stock Story


USD 10.42  0.07  0.67%   

It looks like Cintas Corp will be up for a correction way faster as its share price whent up 4.31% today to Pfsweb's 0.1639%. As many rational traders are trying to avoid industrials space, it makes sense to focus on Pfsweb Inc a little further and understand how it stands against Cintas Corp and other similar entities. We are going to recap some of the competitive aspects of both Pfsweb and Cintas.
Published over two months ago
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Should you drop your Cintas Corp (NASDAQ:CTAS) and Pfsweb (NASDAQ:PFSW) positions after a boost?

By analyzing existing basic indicators between Pfsweb and Cintas, 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 Cintas with a short position in Pfsweb. 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. Pfsweb has an asset utilization ratio of 148.77 percent. This indicates that the company is making $1.49 for each dollar of assets. An increasing asset utilization means that Pfsweb Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Pfsweb or Cintas is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Pfsweb's Liquidity

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

Correlation Between Pfsweb and Cintas Corp

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Pfsweb together with similar or unrelated positions with a negative correlation. For example, you can also add Cintas Corp to your portfolio. If Cintas Corp is not perfectly correlated to Pfsweb it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Pfsweb for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between PFSW and CTAS for more information.

Another Deeper Perspective

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

Lets now take a look at Pfsweb revenue. Based on the latest financial disclosure, Pfsweb Inc reported 284.59 M of revenue. This is 91.87% lower than that of the Industrials sector and significantly higher than that of the Specialty Business Services industry. The revenue for all United States stocks is 96.98% higher than that of the firm. As for Cintas Corp we see revenue of 7.62 B, which is much higher than that of the Specialty Business Services

7.6 B
PFSW284.59 Million3.6
CTAS7.62 Billion96.4

Pfsweb may start a relapse in July

Latest treynor ratio is at 0.46. Pfsweb Inc has relatively low volatility with skewness of 0.06 and kurtosis of 0.94. However, we advise all investors to independently investigate Pfsweb Inc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Pfsweb's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Pfsweb's 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.

Pfsweb Implied Volatility

Pfsweb's implied volatility exposes the market's sentiment of Pfsweb Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Pfsweb's 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 Pfsweb stock will not fluctuate a lot when Pfsweb's options are near their expiration.

Our Bottom Line On Pfsweb Inc

While other entities within the specialty business services industry are still a little expensive, even after the recent corrections, Pfsweb may offer a potential longer-term growth to sophisticated investors. The inconsistency in the assessment between current Pfsweb valuation and our trade advice on Pfsweb 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 Pfsweb.

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 Vlad Skutelnik do not own shares of Pfsweb Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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