Raven Story

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RAVN -- USA Stock  

USD 21.52  0.17  0.78%

As many millenniums are trying to avoid industrials space, it makes sense to outline Raven Industries a little further and try to understand its current market patterns. We will evaluate why we are still confident in anticipation of a recovery. Is Raven Industries operations in 2020 sustainable? Here we are going to cover the entity perspective on valuation to give you a better outlook on taking a position in this stock.
Published over three weeks ago
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Is Raven Industries (NASDAQ:RAVN) ready for a correction?
The company currently holds 58.88 M in liabilities with Debt to Equity (D/E) ratio of 0.19, which may suggest the firm is not taking enough advantage from borrowing. Raven Industries has a current ratio of 3.13, suggesting that it is liquid enough and is able to pay its financial obligations when due. Our recommendation module complements current analysts and expert consensus on Raven Industries. It analyzes the company potential to grow using all fundamental, technical, and market related data available at the time.
We determine the current worth of Raven Industries using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Raven Industries based exclusively on its fundamental and basic technical indicators. By analyzing Raven Industries's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Raven Industries's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Raven Industries. We calculate exposure to Raven Industries's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Raven Industries's related companies.

Raven Industries Investment Alerts

Raven investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Raven Industries performance across your portfolios.Please check all investment alerts for Raven

Raven Industries Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Raven value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Raven Industries competition to find correlations between indicators driving the intrinsic value of Raven.

How Raven utilizes its cash?

To perform a cash flow analysis of Raven Industries, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Raven Industries is receiving and how much cash it distributes out in a given period. The Raven Industries cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Raven Industries Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 51.13 Million

Raven Industries exotic insider transaction detected

Legal trades by Raven Industries 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:
Raven insider trading alert for general transaction of restricted stock unit - 2020 by Steven Brazones, VP & CFO Treasurer, on 1st of September 2020. This event was filed by Raven Industries Inc with SEC on 2020-09-01. Statement of changes in beneficial ownership - SEC Form 4 [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.

Breaking it down a bit more

The entity reported the previous year's revenue of 370.85 M. Net Income was 26.03 M with profit before overhead, payroll, taxes, and interest of 124.16 M.
 2019 2020 (projected)
Consolidated Income4.36 M4.48 M
Direct Expenses258.78 M238.31 M

Margins Breakdown

Raven profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Raven Industries itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Raven Industries profit margins.
Profit Margin
Operating Margin
Operating Margin13.82
EBITDA Margin18.42
Gross Margin29.57
Profit Margin10.83

Raven Industries Revenue Per Employee is increasing over the last 8 years. Also, Raven Industries Earnings Before Interest Taxes and Depreciation Amortization USD is quite stable at the moment.

Raven Industries implied volatility may change after the rise

Raven Industries information ratio is up to 0.01. Raven Industries shows above-average downside volatility for the selected time horizon. We advise investors to inspect Raven Industries further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Raven Industries future alpha.

Our Bottom Line On Raven Industries

Whereas other companies within the specialty industrial machinery industry are still a little expensive, even after the recent corrections, Raven Industries may offer a potential longer-term growth to institutional investors. The bottom line, as of the 28th of August 2020, we believe that at this point, Raven Industries is fairly valued with very low odds of distress within the next 2 years. Our primary buy-hold-sell recommendation on the company is Hold.

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 Achuva Shats do not own shares of Raven Industries. Please refer to our Terms of Use for any information regarding our disclosure principles.

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