| 2013 | 2014 | 2016 | 2018 | 2019 (projected) | PerkinElmer Cost of Revenue | 1,135,282,000 | 1,140,592,000 | 1,102,164,000 | 991,947,600 | 932,930,211 | PerkinElmer Consolidated Income | 157,778,000 | 212,425,000 | 234,299,000 | 210,869,100 | 163,608,158 |
PerkinElmer drops -1.5609 percent in spite of market boost
 | By Rifka Kats | Macroaxis Story |
Today I will concentrate on PerkinElmer. I will examine why in spite of prevalent disturbance, the overall long-run investment outlook of the entity is still stable. This firm Piotroski F Score is 5 - Healthy. Considering 30-days investment horizon, PerkinElmer is expected to generate 1.59 times more return on investment than the market. However, the company is 1.59 times more volatile than its market benchmark. It trades about 0.02 of its potential returns per unit of risk. The market is currently generating roughly -0.03 per unit of risk. We consider PerkinElmer not too volatile. PerkinElmer maintains Sharpe Ratio (i.e. Efficiency) of 0.0205 which implies the corporation had 0.0205% of return per unit of risk over the last 1 month. Our philosophy towards forecasting volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for PerkinElmer which you can use to evaluate future volatility of the company. Please check PerkinElmer Risk Adjusted Performance of 0.1124, Semi Deviation of 2.88 and Coefficient Of Variation of 1712.99 to confirm if risk estimate we provide are consistent with the epected return of 0.0611%.
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Reviewed by Raphi Shpitalnik
PERKIN ELMER INC has roughly 149.51M in cash with 204.63M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.34. PerkinElmer dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.14 per share. Now, lets check PerkinElmer Shares Outstanding. Based on latest financial disclosure PerkinElmer has 111.24M of shares currently outstending. This is 55.36% lower than that of the Healthcare sector, and significantly higher than that of Diagnostics & Research industry, The Shares Outstanding for all stocks is 92.2% higher than the firm.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as PerkinElmer. Your research has to be compared to or analyzed against PerkinElmer's peers to derive any actionable benefits. When done correctly, PerkinElmer's 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 PerkinElmer.
Investing in PerkinElmer, 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 PerkinElmer 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 PerkinElmer's 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 PerkinElmer's Liquidity
PerkinElmer financial leverage refers to using borrowed capital as a funding source to finance PerkinElmer ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. PerkinElmer 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 PerkinElmer's 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 PerkinElmer's 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 PerkinElmer's total debt and its cash.
PerkinElmer Correlation with Peers
Investors in PerkinElmer can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in PerkinElmer. Diversification will allow for the same portfolio return with reduced risk. The correlation table of PerkinElmer and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities PerkinElmer 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 PerkinElmer for more details
A Deeper Perspective On PerkinElmer
The current investor indifference towards the small price fluctuations of PerkinElmer may encourage investors to take a closer look at the company as it closed today at a share price of 84.65 on 355569.000 in trading volume. The company executives did not add any value to PerkinElmer investors in December. However, most investors can still diversify their portfolios with PerkinElmer to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.9876. The current volatility is consistent with the ongoing market swings in December 2018 as well as with PerkinElmer unsystematic, company specific events. PerkinElmer is trading at 85.14 which is 1.56 percent decrease. Today highest was 85.515. PerkinElmer Total Assets Per Share is nearly stable at the moment. Also, PerkinElmer Gross Margin is decreasing over the last 5 years. The prevalent value of PerkinElmer Gross Margin is 0.41.
All in all, we believe that at this point PerkinElmer is overvalued with below average odds of distress within the next 2 years. Our current 'Buy vs. Hold vs. Sell' recommendation on the entity is Hold.
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