Pyxis Tankers (NASDAQ:PXS) high volatility trend continues
 | By Rifka Kats | Macroaxis Story |
Considering the 60-days investment horizon, Pyxis Tankers is expected to generate 5.16 times more return on investment than the market. However, the company is 5.16 times more volatile than its market benchmark. It trades about 0.12 of its potential returns per unit of risk. The DOW is currently generating roughly 0.07 per unit of risk. While some of us are excited about industrials space, it makes sense to sum up Pyxis Tankers in greater detail to make a better estimate of its risk and reward. We will evaluate if Pyxis Tankers' current volatility will continue into December. The latest Pyxis risk factors may impact the value of the stock as we estimate Pyxis Tankers as currently undervalued. The real value is approaching 1.82 per share.
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Reviewed by Raphi Shpitalnik
Pyxis Tankers runs under Industrials sector within Marine Shipping industry. On a scale of 0 to 100, Pyxis Tankers holds a performance score of 8. The company holds a Beta of -0.0762, which implies not very significant fluctuations relative to the market. Let's try to break down what Pyxis's beta means in this case. As returns on the market increase, returns on owning Pyxis Tankers are expected to decrease at a much lower rate. During the bear market, Pyxis Tankers is likely to outperform the market. Although it is vital to follow Pyxis Tankers current trending patterns, it is good to be conservative about what you can do with the information regarding equity existing price patterns. The philosophy towards forecasting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-eight technical indicators for Pyxis Tankers, which you can use to evaluate the performance of the company. Please employ Pyxis Tankers treynor ratio, expected short fall, as well as the relationship between the Expected Short fall and day median price to make a quick decision on whether Pyxis Tankers historical price patterns will revert. Volatility is a rate at which the price of Pyxis Tankers or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Pyxis Tankers may increase or decrease. In other words, similar to Pyxis's beta indicator, it measures the risk of Pyxis Tankers and helps estimate the fluctuations that may happen in a short period of time. So if prices of Pyxis Tankers fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Pyxis Tankers's Liquidity
Pyxis Tankers financial leverage refers to using borrowed capital as a funding source to finance Pyxis Tankers ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Pyxis Tankers 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 Pyxis Tankers' 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 Pyxis Tankers' 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 Pyxis Tankers's total debt and its cash.
Pyxis Tankers Gross Profit
Pyxis Tankers Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Pyxis Tankers 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 Pyxis Tankers Gross Profit growth over the last 10 years. Please check Pyxis Tankers' gross profit and other fundamental indicators for more details.
Pyxis Tankers Volatility Drivers
Pyxis Tankers unsystematic risk is unique to Pyxis Tankers and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Pyxis Tankers you can also buy Ardmore Shpng. You can also mitigate this risk by investing in the industrials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Pyxis Tankers important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Pyxis Tankers income statement and balance sheet. Here are more details about Pyxis volatility.Click cells to compare fundamentals
Details
The latest price spike of Pyxis Tankers may encourage retail investors to take a closer look at the company as it is trading at a share price of 1.18 on slow start in trading volume. The company directors and management may have good odds in positioning the company resources to exploit market volatility in December. The stock standard deviation of daily returns for 30 days investing horizon is currently 6.34. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Pyxis Tankers partners.
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