Raven Story

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RAVN -- USA Stock  

USD 37.46  1.16  3.00%

Raven Industries is scheduled to announce its earnings today. The next earnings report is expected on the 18th of May 2021. Raven Industries Average Equity is quite stable at the moment as compared to the past year. The company's current value of Average Equity is estimated at 273.91 Million. Enterprise Value is expected to rise to about 488 M this year, although the value of Free Cash Flow will most likely fall to about 24.5 M. While some baby boomers are getting worried about industrials space, it is reasonable to outline Raven Industries as an investment alternative.
Published over three weeks ago
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How much will Raven Industries owe in April?
This firm currently holds 10.33 M in liabilities with Debt to Equity (D/E) ratio of 0.03, which may suggest the firm is not taking enough advantage from borrowing. The company has a current ratio of 3.08, suggesting that it is liquid enough and is able to pay its financial obligations when due. The company has Profit Margin (PM) of 6.18 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of 10.86 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.11.
Raven Industries financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Raven Industries, including all of Raven Industries'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 Raven Industries assets, the company is considered highly leveraged. Understanding the composition and structure of overall Raven Industries 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.

Understanding Raven Total Debt

Raven Industries liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Raven Industries has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Raven Industries balance sheet include debt obligations and money owed to different Raven Industries vendors, workers, and loan providers. Below is the chart of Raven main long-term debt accounts currently reported on its balance sheet.
You can use Raven Industries financial leverage analysis tool to get a better grip on understanding its financial position

How important is Raven Industries's Liquidity

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

Acquisition by Sharih Taimur of 4547 shares of Raven Industries subject to Rule 16b-3

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 grant of restricted stock unit - 2021 by Sharih Taimur, Vice Preisdent & CFO, on 7th of April 2021. This event was filed by Raven Industries Inc with SEC on 2021-04-07. 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.

Another angle On Raven Industries

The latest bullish price patterns experienced by current Raven Industries shareholders created some momentum for institutional investors as it was traded today as low as 35.05 and as high as 37.24 per share. The company management teams have been very successful in rebalancing the company assets at opportune times to take advantage of market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.51. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Raven Industries partners.

Asset Breakdown

168.4 M
Assets Non Current
52.1 M
130.4 M
Current Assets
Total Assets315.04 Million
Current Assets130.36 Million
Assets Non Current168.44 Million
Goodwill52.08 Million
Tax Assets2.49 Million

Will Raven slide impact its fundamentals?

The expected short fall is down to -2.66 as of today. 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. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Raven Industries' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Raven Industries' 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 Final Take On Raven Industries

Whereas some other entities in the specialty industrial machinery industry are either recovering or due for a correction, Raven may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 22nd of March 2021, our overall 30 days buy-sell recommendation on the company is Cautious Hold. We believe Raven Industries is fairly valued with very low odds of distress for the next two years.

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 Raphi Shpitalnik 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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