Stein Story

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SMRT -- USA Stock  

USD 0.37  0.03  8.82%

Macroaxis News
By Ellen Johnson
This perspective, will run through few points to consider when considering Stein for a long position. We will break down why Stein Mart private investors may need to re-consider a stake in the firm. Stein Mart current daily volatility is 10.29 percent, with a beta of -0.48 and alpha of 0.32 over DOW. What is Stein Mart odds of distress for July 2020? We were able to interpolate thirty-six available drivers for Stein Mart, which can be compared to its competition. To make sure the equity is not overpriced, please validate all Stein Mart financials, including its price to earning, cash flow from operations, z score, as well as the relationship between the net income and market capitalization . As Stein Mart is a penny stock we also advise to double-check its number of shares shorted numbers. Use Stein Mart to enhance returns of your portfolios. The stock experiences a very speculative upward sentiment. Check odds of Stein Mart to be traded at $0.525 in 30 days.
Stein Mart is up today but can we expect an advance?

This firm currently holds 538.6 M in liabilities. The company currently holds 538.6 M in liabilities. Stein Mart has a current ratio of 1.11, suggesting that it may have difficulties to pay its financial obligations when they are due. Stein Mart is UNDERVALUED at 2.05 per share with modest projections ahead. Stein Mart exercises its assets roughly 0.32 %, realizing $0.0032 for each dollar of assets held by the company. A flourishing asset utilization indicates the company is being more effective with each dollar of assets it has. In other words asset utilization of Stein Mart shows how effective it operates for each dollar spent on its assets.
Stein Mart financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures the total debt position of Stein Mart, including all of Stein Mart'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 Stein Mart assets, the company is considered highly leveraged. Understanding the composition and structure of overall Stein Mart debt and outstanding corporate bonds gives a good idea as to how risky the capital structure of a business and if it is worth investing in it. Please read more on our technical analysis page.
 2010 2020 (projected)
Receivables10.36 M9.14 M
Inventories261.52 M281.16 M

Watch out for price decline

Please consider monitoring Stein Mart on a daily bases if you are holding a position in it. Stein Mart is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Stein Mart stock to be traded above the $1 level to remain listed. If Stein Mart stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

Understending Stein Total Liabilities

Stein Mart liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Stein Mart 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 Stein Mart balance sheet include debt obligations and money owed to different Stein Mart vendors, workers, and loan providers. Below is the chart of Stein short long-term liabilities accounts currently reported on its balance sheet.

How important is Stein Mart's Liquidity

Stein Mart financial leverage refers to using borrowed capital as a funding source to finance Stein Mart ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Stein Mart financial leverage is typically calculated by taking the company's all of the 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. The map below shows the current breakdown between Stein Mart's total debt and its cash.

How Stein utilizes its cash?

To perform a cash flow analysis of Stein Mart, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Stein Mart is receiving and how much cash it distributes out in a given period. The Stein Mart cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. The chart below shows of Stein Mart Net Cash Flow from Operations over the last 10 years
Stock Analysis

Sale by Mitchell Legler of 615 shares of Stein Mart

Legal trades by Stein Mart 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:
Stein Mart insider trading alert for sale of common stock by Mitchell Legler, the corporate stakeholder, on 17th of June 2020. This event was filed by Stein Mart Inc with SEC on 2019-05-01. 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

Stein Mart makes 37.91 % probability of bankruptcy. The entity has a beta of -0.4801. Let's try to break down what Stein's beta means in this case. As returns on the market increase, Stein Mart returns are expected to increase less than the market. However, during the bear market, the loss on holding Stein Mart will be expected to be smaller as well. The beta indicator helps investors understand whether Stein Mart moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Stein deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The firm reported previous year revenue of 1.24 B. Net Loss for the year was (10.46 M) with profit before overhead, payroll, taxes, and interest of 335.43 M. Stein Mart Earnings Before Interest Taxes and Depreciation Amortization USD is comparatively stable at the moment. Also, Stein Mart Average Assets is comparatively stable at the moment.

Over 3 percent advance for Stein Mart today. What does it mean for private investors?

Newest maximum drawdown is at 52.12. Stein Mart is displaying above average volatility of 10.15 over selected time horizon. Investors should scrutinize Stein Mart independently to ensure intended market timing strategies are aligned with expectations about Stein Mart volatility. Stein Mart is a potential penny stock. Although Stein Mart may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand upside potential and downside risk of investing in Stein Mart. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings,sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that has been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The one and only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Final Take On Stein Mart

While many of the other players under apparel retail industry are still a little expensive, even after the recent corrections, Stein Mart may offer a potential longer-term growth to investors. To conclude, as of 30th of June 2020, our current 30 days 'Buy/Sell' recommendation on the firm is Strong Sell. However, we believe Stein Mart is undervalued with below average probability of bankruptcy for the next two years. The inconsistency in the assessment between current Stein valuation and our trade advice on Stein Mart is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Stein Mart.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile
This story should be regarded as informational only and should not be considered as 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 Ellen Johnson do not own shares of Stein Mart. Please refer to our Terms of Use for any information regarding our disclosure principles.
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