By analyzing existing basic indicators between EW Scripps and Travelers, 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 Travelers with a short position in EW Scripps. 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. EW Scripps has an asset utilization ratio of 137.43 percent. This suggests that the company is making $1.37 for each dollar of assets. An increasing asset utilization means that EW Scripps 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 SSP or Cimpress is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is E W's Liquidity
E W
financial leverage refers to using borrowed capital as a funding source to finance E W Scripps ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. E W 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 E W'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 E W'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 E W's total debt and its cash.
Correlation Between SSP and Cimpress NV
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 E W together with similar or unrelated positions with a negative correlation. For example, you can also add Cimpress to your portfolio. If Cimpress is not perfectly correlated to E W 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 E W, 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 E W and Cimpress in your portfolio? Please note if you are using this as a pair-trade strategy between E W and Cimpress, 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 SSP and CMPR for more information.
Another Deeper Perspective
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
Lets now check EW Scripps revenue. Based on the latest financial disclosure, EW Scripps reported 2.31
B of revenue. This is 84.29% lower than that of the Communication Services sector and significantly higher than that of the
Broadcasting industry. The revenue for all United States stocks is 75.52% higher than that of EW Scripps. As for Travelers Companies we see revenue of 35.31
B, which is much higher than that of the Broadcasting
| SSP | 2.31 Billion | 6.14 |
| Sector | 0.0 | 0.0 |
| TRV | 35.31 Billion | 93.86 |
Will EW Scripps price decline impact its balance sheet?
Recent coefficient of variation indicator falls down to -1670.66. Possible price boost? EW Scripps exhibits very low volatility with skewness of -0.82 and kurtosis of 1.56. However, we advise investors to further study EW Scripps technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure EW Scripps' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact EW Scripps' 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.
EW Scripps Implied Volatility
Our Final Take On EW Scripps
When is the right time to buy or sell EW Scripps? Buying stocks such as EW Scripps isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
To conclude, as of the 5th of August 2022, our concluding 90 days buy-sell recommendation on the firm is
Cautious Hold. We believe EW Scripps is
undervalued with
close to average probability of bankruptcy for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of E W Scripps. Please refer to our
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