Staffing Stock Story

STAF

Stock

USD 4.22 0.13 2.99%

Macroaxis Story

Staffing 360 Solutions is scheduled to announce its earnings today. Staffing 360 Average Equity is projected to increase significantly based on the last few years of reporting. The past year's Average Equity was at 7.69 Million. The current year Enterprise Value is expected to grow to about 36.3 M, whereas Revenue Per Employee is forecasted to decline to about 505.7 K. While some baby boomers are getting worried about industrials space, it is reasonable to digest Staffing 360 Solutions as an investment alternative. We will evaluate why recent Staffing 360 price moves suggest a bounce in August.

Published over a month ago

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Will Staffing 360 (NASDAQ:STAF) be in financial trouble before August?

This firm currently holds 33.49 M in liabilities with Debt to Equity (D/E) ratio of 1.53, which is about average as compared to similar companies.

We provide advice to complement the current expert consensus on Staffing 360. Our dynamic recommendation engine harnesses a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.

Will Staffing 360 (NASDAQ:STAF) be in financial trouble before August?

Staffing 360 financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Staffing 360, including all of Staffing 360'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 Staffing 360 assets, the company is considered highly leveraged. Understanding the composition and structure of overall Staffing 360 debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.

Please read more on our technical analysis page.

Understanding Staffing Total Liabilities

Staffing 360 Solutions liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Staffing 360 Solutions 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 Staffing 360 balance sheet include debt obligations and money owed to different Staffing 360 vendors, workers, and loan providers. Below is the chart of Staffing short long-term liabilities accounts currently reported on its balance sheet.

You can use Staffing 360 Solutions financial leverage analysis tool to get a better grip on understanding its financial position

How important is Staffing 360's Liquidity

Staffing 360 financial leverage refers to using borrowed capital as a funding source to finance Staffing 360 Solutions ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Staffing 360 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 Staffing 360's total debt and its cash.

Breaking down Staffing 360 Indicators

The big decline in price over the last few months for Staffing 360 created some momentum for shareholders as it was traded today as low as 4.25 and as high as 4.61 per share. The company executives failed to add value to investors and position the company supply of money to exploit market volatility in June. However, diversifying your holdings with Staffing 360 Solutions or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 6.16. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Staffing 360 Solutions partners.

Asset Breakdown

Assets Non Current

Goodwill

130.4 M

Current Assets

	Total Assets	253.9 Million
	Current Assets	130.42 Million
	Assets Non Current	22.74 Million
	Goodwill	19.39 Million

Our Staffing analysis indicates possible reversion in August

Latest treynor ratio is at -0.81. Staffing 360 Solutions is displaying above-average volatility over the selected time horizon. Investors should scrutinize Staffing 360 Solutions independently to ensure intended market timing strategies are aligned with expectations about Staffing 360 volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Staffing 360's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Staffing 360's 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.

Staffing 360 Implied Volatility

Staffing 360's implied volatility exposes the market's sentiment of Staffing 360 Solutions stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Staffing 360's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Staffing 360 stock will not fluctuate a lot when Staffing 360's options are near their expiration.

Our Final Takeaway

Although many of the other players in the staffing & employment services industry are either recovering or due for a correction, Staffing 360 may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 7th of July 2022, we believe Staffing 360 is currently overvalued. It follows the market closely and projects low chance of bankruptcy in the next two years. Our current 90 days recommendation on the firm is Hold.

Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test 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 Staffing 360 Solutions. Please refer to our Terms of Use for any information regarding our disclosure principles.

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