By analyzing existing basic indicators between Spectrum Brands and Barnes, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Barnes with a short position in Spectrum Brands. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Spectrum Brands has an asset utilization ratio of 54.04 percent. This suggests that the company is making $0.54 for each dollar of assets. An increasing asset utilization means that Spectrum Brands Holdings is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Spectrum or Inter is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Spectrum Brands dividends
A dividend is the distribution of a portion of Spectrum Brands earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Spectrum Brands dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Spectrum one year expected dividend income is about USD1.26 per share.
At present, Spectrum Brands'
Dividends Paid is projected to increase significantly based on the last few years of reporting. The current year's
Dividend Paid And Capex Coverage Ratio is expected to grow to 67.35, whereas
Dividend Yield is forecasted to decline to 0.02.
Investing in dividend-paying stocks, such as Spectrum Brands Holdings is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Spectrum Brands must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Spectrum Brands. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Spectrum Brands's Liquidity
Spectrum Brands
financial leverage refers to using borrowed capital as a funding source to finance Spectrum Brands Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Spectrum Brands 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 Spectrum Brands' 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 Spectrum Brands' 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 Spectrum Brands's total debt and its cash.
Correlation Between Spectrum and Inter Parfums
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Spectrum Brands together with similar or unrelated positions with a negative correlation. For example, you can also add Inter Parfums to your portfolio. If Inter Parfums is not perfectly correlated to Spectrum Brands it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Spectrum Brands, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Spectrum Brands and Inter Parfums in your portfolio? Please note if you are using this as a pair-trade strategy between Spectrum Brands and Inter Parfums, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between SPB and IPAR for more information.
Going after Spectrum Financials
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Spectrum Brands revenue. Based on the latest financial disclosure, Spectrum Brands Holdings reported 3.82
B of revenue. This is 74.28% lower than that of the Consumer Defensive sector and 67.14% lower than that of the
Household & Personal Products industry. The revenue for all United States stocks is 59.51% higher than that of Spectrum Brands. As for Barnes Noble we see revenue of 3.55
B, which is 69.46% lower than that of the Household & Personal Products
| Spectrum | 3.82 Billion |
| Sector | 9.43 Billion |
| Barnes | 3.55 Billion |
Will Spectrum pull back in August 2020?
The skewness is down to -0.13 as of today. As of the 31st of July, Spectrum Brands has the Semi Deviation of 3.16,
coefficient of variation of 723.15, and Risk Adjusted Performance of 0.2349. In relation to
fundamental indicators, the
technical analysis model makes it possible for you to check existing technical drivers of Spectrum Brands Hold, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen
technical drivers for Spectrum Brands Holdings, which can be compared to its competition. Please validate
Spectrum Brands Hold variance, as well as the
relationship between the maximum drawdown and
semi variance to decide if Spectrum Brands is priced more or less accurately, providing market reflects its prevalent price of 52.88 per share. Given that Spectrum Brands Hold has
jensen alpha of 0.2598, we advise you to double-check Spectrum Brands Holdings's current market performance to make sure the company can sustain itself at a future point.
The Current Takeaway on Spectrum Brands Investment
Whereas some other companies under the household & personal products industry are still a bit expensive, Spectrum Brands may offer a potential longer-term growth to investors. To sum up, as of the 31st of July 2020, we believe that Spectrum Brands is currently
overvalued with
below average chance of distress in the next two years. Our primary 30 days Buy-Hold-Sell recommendation on the company is
Strong Hold.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile 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 Vlad Skutelnik do not own shares of Spectrum Brands Holdings. Please refer to our
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