By analyzing existing technical and fundamental indicators between Pioneer Power and YASKAWA, 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 YASKAWA with a short position in Pioneer Power. 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. Pioneer Power has an asset utilization ratio of 31.13 percent. This implies that the company is making $0.31 for each dollar of assets. An increasing asset utilization means that Pioneer Power Solutions 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 entities, such as Pioneer or Espey is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Pioneer Power's Liquidity
Pioneer Power
financial leverage refers to using borrowed capital as a funding source to finance Pioneer Power Solutions ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Pioneer 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. Financial leverage can amplify the potential profits to Pioneer Power'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 Pioneer Power'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 Pioneer Power's total debt and its cash.
Correlation Between Pioneer and Espey Mfg Electronics
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 Pioneer Power together with similar or unrelated positions with a negative correlation. For example, you can also add Espey Mfg to your portfolio. If Espey Mfg is not perfectly correlated to Pioneer Power 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 Pioneer Power, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Pioneer Power and Espey Mfg in your portfolio? Please note if you are using this as a pair-trade strategy between Pioneer Power and Espey Mfg, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between PPSI and ESP 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
Let me now analyze Pioneer Power revenue. Based on the latest financial disclosure, Pioneer Power Solutions reported 20.77
M of revenue. This is 99.41% lower than that of the Industrials sector and significantly higher than that of the
Electrical Equipment & Parts industry. The revenue for all United States stocks is 99.78% higher than that of the firm. As for YASKAWA ELECTRIC we see revenue of 4.07
B, which is much higher than that of the Electrical Equipment & Parts
| PPSI | 20.77 Million | 0.51 |
| Sector | 0.0 | 0.0 |
| YASKY | 4.07 Billion | 99.49 |
Our perspective of the current Pioneer Power rise
Risk adjusted performance is down to 0.17. It may hint to a possible volatility drop. As of the 22nd of January, Pioneer Power holds the Risk Adjusted Performance of 0.1719,
coefficient of variation of 595.98, and Semi Deviation of 6.12. Compared to
fundamental indicators, the
technical analysis model allows you to check existing technical drivers of Pioneer Power, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to analyze and collect data for nineteen
technical drivers for Pioneer Power Solutions, which can be compared to its competitors. Please check
Pioneer Power Solutions variance,
value at risk, as well as the
relationship between the Value At Risk and
skewness to decide if Pioneer Power Solutions is priced some-what accurately, providing market reflects its current price of 7.8 per share. Given that Pioneer Power has
jensen alpha of 1.79, we recommend you to check out Pioneer Power Solutions's recent market performance to make sure the company can sustain itself at a future point.
Our Conclusion on Pioneer Power
While few other entities within the electrical equipment & parts industry are still a little expensive, even after the recent corrections, Pioneer Power may offer a potential longer-term growth to stockholders. To sum up, as of the 22nd of January 2021, our analysis shows that Pioneer Power barely shadows the market. The company is
overvalued and projects
very small odds of financial distress for the next 2 years. Our concluding 30 days recommendation on the company is
Strong Sell.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 Pioneer Power Solutions. Please refer to our
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