Polar Story

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POLA -- USA Stock  

USD 14.14  1.29  8.36%

The stock is undergoing an active upward rally. While some baby boomers are getting worried about industrials space, it is reasonable to go over Polar Power as an investment alternative. We will evaluate why recent Polar Power price moves suggest a bounce in February. Here we also measure the ability of Polar Power to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
Published over a month ago
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Will Polar (NASDAQ:POLA) investors stop to exit in February?
This firm currently holds 4.64 M in liabilities with Debt to Equity (D/E) ratio of 0.31, which is about average as compared to similar companies. The company has a current ratio of 5.44, suggesting that it is liquid enough and is able to pay its financial obligations when due. The company has Profit Margin (PM) of (162.24) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (190.09) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -1.9.
Polar Power financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Polar Power, including all of Polar Power's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Polar Power assets, the company is considered highly leveraged. Understanding the composition and structure of overall Polar Power debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

How important is Polar Power's Liquidity

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

How Polar utilizes its cash?

To perform a cash flow analysis of Polar Power, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Polar Power is receiving and how much cash it distributes out in a given period. The Polar Power cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Disposition of 60000 shares by Zavala Luis of Polar Power subject to Rule 16b-3

Legal trades by Polar Power 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:
Polar Power insider trading alert for disposition of stock option (right to buy) by Zavala Luis, Chief Financial Officer, on 13th of May 2020. This event was filed by Polar Power Inc with SEC on 2020-05-13. Annual statement of changes in beneficial ownership - SEC Form 5 [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.

A Deeper Perspective

The current price rise of Polar Power may encourage investors to take a closer look at the company as it is trading at a share price of 15.97 on very low momentum in trading volume. The company executives may have good odds in positioning the company resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 13.71. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Polar Power partners.

Our take on today Polar Power rise

Polar Power current skewness builds up over 1.51. Polar Power is displaying above-average volatility over the selected time horizon. Investors should scrutinize Polar Power independently to ensure intended market timing strategies are aligned with expectations about Polar Power volatility.

Whereas some other firms under the electrical equipment & parts industry are still a bit expensive, Polar Power may offer a potential longer-term growth to investors. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to trade some or all of your Polar Power holdings as it seems the potential growth was already fully factored into the current price. 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 Polar Power.

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 Gabriel Shpitalnik do not own shares of Polar Power. Please refer to our Terms of Use for any information regarding our disclosure principles.

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