Phillips-Van Heusen Corp has roughly 1.46
B in cash with 1.02
B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 20.53.
Macroaxis provides advice on Phillips-Van Heusen Corp to complement and cross-verify current
analyst consensus on Phillips-Van Heusen Corp. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Investing in PVH Corp, 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 PVH Corp 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 PVH Corp'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.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as PVH Corp. Your research has to be compared to or analyzed against PVH Corp's peers to derive any actionable benefits. When done correctly, PVH Corp'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 PVH Corp.
How important is PVH Corp's Liquidity
PVH Corp
financial leverage refers to using borrowed capital as a funding source to finance PVH Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. PVH Corp 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 PVH Corp'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 PVH Corp'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 PVH Corp's total debt and its cash.
PVH Corp Gross Profit
PVH Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing PVH Corp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show PVH Corp Gross Profit growth over the last 10 years. Please check PVH Corp's
gross profit and other
fundamental indicators for more details.
PVH Corp Correlation with Peers
Investors in PVH can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in PVH Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of PVH Corp and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities PVH 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 PVH for more details
Another angle On PVH Corp
We consider Phillips-Van Heusen very steady.
Phillips-Van Heusen Corp maintains Sharpe Ratio (i.e. Efficiency) of 0.0285, which implies the firm had 0.0285% of return per unit of risk over the last month. Our standpoint towards forecasting the 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-eight
technical indicators for Phillips-Van Heusen Corp, which you can use to evaluate future volatility of the company. Please check Phillips-Van Heusen Corp Risk Adjusted Performance of 0.0484,
semi deviation of 3.09, and Coefficient Of Variation of 2078.59 to confirm if the risk estimate we provide is consistent with the expected return of 0.0878%.
Our take on today Phillips-Van Heusen drop
Semi variance is down to 9.53. It may hint to a possible volatility drop. Phillips-Van Heusen Corp shows above-average downside volatility for the selected time horizon. We advise investors to inspect Phillips-Van Heusen Corp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Phillips-Van Heusen future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Phillips-Van Heusen'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 Phillips-Van Heusen'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.
Our Conclusion on Phillips-Van Heusen
While some firms within the apparel manufacturing industry are still a little expensive, even after the recent corrections, Phillips-Van Heusen may offer a potential longer-term growth to stockholders. On the whole, as of the 30th of March 2021, our analysis shows that Phillips-Van Heusen barely shadows the market. The company is
overvalued and projects
low odds of distress for the next 2 years. Our ongoing 30 days buy-hold-sell recommendation on the company is
Sell.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of PVH Corp. Please refer to our
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