The modest gains experienced by current holders of Siteone Landscape Supply created some momentum for shareholders as it was traded today as low as 117.32 and as high as 122.06 per share. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in August. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.74. The current volatility is consistent with the ongoing market swings in August 2022 as well as with Siteone Landscape Supply unsystematic, company-specific events.
Is Siteone Landscape (NYSE:SITE) volatility declining?
By Gabriel Shpitalnik | Macroaxis Story |
Siteone Landscape is currently generating 0.1486% in daily expected returns and assumes 2.7408% risk (volatility on return distribution) over the 90 days horizon. While some risk-loving traders are indifferent towards current market volatility, it is reasonable to digest the risk of investing in Siteone Landscape Supply. What exactly are Siteone Landscape shareholders getting in October?
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Reviewed by Rifka Kats
Siteone Landscape Supply currently holds roughly 47.1 M in cash with 138 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.05. Volatility is a rate at which the price of SiteOne Landscape 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 SiteOne Landscape may increase or decrease. In other words, similar to SiteOne's beta indicator, it measures the risk of SiteOne Landscape and helps estimate the fluctuations that may happen in a short period of time. So if prices of SiteOne Landscape 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 SiteOne Landscape's Liquidity
SiteOne Landscape financial leverage refers to using borrowed capital as a funding source to finance SiteOne Landscape Supply ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. SiteOne Landscape 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 SiteOne Landscape'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 SiteOne Landscape'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 SiteOne Landscape's total debt and its cash.
SiteOne Landscape Gross Profit
SiteOne Landscape Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing SiteOne Landscape 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 SiteOne Landscape Gross Profit growth over the last 10 years. Please check SiteOne Landscape's gross profit and other fundamental indicators for more details.
SiteOne Landscape Volatility Drivers
SiteOne Landscape unsystematic risk is unique to SiteOne Landscape Supply 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 SiteOne Landscape you can also buy Armstrong World Industries. 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 SiteOne Landscape 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 SiteOne Landscape income statement and balance sheet. Here are more details about SiteOne volatility.Click cells to compare fundamentals
Detailed Perspective On SiteOne Landscape
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