Sequential Story

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SQBG -- USA Stock  

USD 4.85  0.40  8.99%

Sequential Brands Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 759.15 Million. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 8.3 M, whereas Earnings before Tax are forecasted to decline to (5.2 M). This post will digest Sequential Brands. We will evaluate why we are still optimistic in anticipation of a recovery. In this post, I will also go over some essential variables affecting Sequential Brands' products, and show how it may impact Sequential Brands outlook for active traders this year.
Published over a month ago
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Is Sequential Brands overvalued?
Sequential Brands holds a performance score of 9 on a scale of zero to a hundred. The entity has a beta of 3.8516, which indicates a somewhat significant risk relative to the market. Let's try to break down what Sequential's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Sequential Brands will likely underperform. Although it is essential to pay attention to Sequential Brands current price movements, it is also good to be reasonable about what you can do with equity historical returns. Our philosophy towards measuring future potential of any stock is to look not only at its past charts but also at the business as a whole, including all available fundamental and technical indicators. To evaluate if Sequential Brands Group expected return of 16.9 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use Sequential Brands expected short fall, and the relationship between the value at risk and daily balance of power to analyze future returns on Sequential Brands.

How important is Sequential Brands's Liquidity

Sequential Brands financial leverage refers to using borrowed capital as a funding source to finance Sequential Brands Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Sequential 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. Please check the breakdown between Sequential Brands's total debt and its cash.

How Sequential utilizes its cash?

To perform a cash flow analysis of Sequential Brands, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Sequential Brands is receiving and how much cash it distributes out in a given period. The Sequential Brands cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Sequential Brands Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 3.41 Million

What is driving Sequential Brands Investor Appetite?

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Sequential Brands has an asset utilization ratio of 7.46 percent. This indicates that the company is making $0.0746 for each dollar of assets. An increasing asset utilization means that Sequential Brands Group is more efficient with each dollar of assets it utilizes for everyday operations.

Sequential technical analysis indicates possible throwback

Maximum drawdown is down to 2971.05. It may indicate a possible volatility dip. Sequential Brands Group is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about Sequential Brands implied risk.

Our Bottom Line On Sequential Brands

Although many of the other players within the apparel manufacturing industry are still a little expensive, even after the recent corrections, Sequential Brands may offer a potential longer-term growth to shareholders. To conclude, as of the 13th of August 2020, we believe that at this point, Sequential Brands is overvalued with below average chance of financial distress within the next 2 years. Our primary recommendation on the firm 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 Raphi Shpitalnik do not own shares of Sequential Brands Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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