Sunopta Story

<div class='circular--portrait' style='background:#4682B4;color: #f8f8f8;font-size:3em;'>STK</div>
STKL -- USA Stock  

USD 14.45  0.31  2.10%

As many rational traders are trying to avoid consumer defensive space, it makes sense to summarize Sunopta a little further and understand how it stands against Kellogg and other similar entities. We are going to summarize some of the competitive aspects of both Sunopta and Kellogg.
Published over a month ago
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Are Kellogg (NYSE:K) stakeholders switching to Sunopta (NASDAQ:STKL)?
By analyzing existing basic indicators between Sunopta and Kellogg, 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 Kellogg with a short position in Sunopta. 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. Sunopta has an asset utilization ratio of 103.35 percent. This denotes that the company is making $1.03 for each dollar of assets. An increasing asset utilization means that Sunopta 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 companies, such as Sunopta or Kraft is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Sunopta's Liquidity

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

Correlation Between Sunopta and Kraft Heinz

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 Sunopta together with similar or unrelated positions with a negative correlation. For example, you can also add Kraft Heinz to your portfolio. If Kraft Heinz is not perfectly correlated to Sunopta 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 Sunopta for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between STKL and KHC for more information.

Note

Are you currently holding both Sunopta and Kraft Heinz in your portfolio?
Please note if you are using this as a pair-trade strategy between Sunopta and Kraft Heinz, 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.

A Deeper Perspective On Sunopta

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 Sunopta revenue. Based on the latest financial disclosure, Sunopta reported 1.26 B of revenue. This is 91.52% lower than that of the Consumer Defensive sector and 84.85% lower than that of the Packaged Foods industry. The revenue for all United States stocks is 86.65% higher than that of Sunopta. As for Kellogg we see revenue of 13.77 B, which is 65.56% higher than that of the Packaged Foods

Sector
8.3 B
K
13.8 B
STKL1.26 Billion5.4
Sector8.32 Billion35.62
K13.77 Billion58.98

Time to pull out of Sunopta is now

Downside deviation is down to 2.23. It may denote a possible volatility pull down. Sunopta currently demonstrates below-average downside deviation. It has Information Ratio of 0.24 and Jensen Alpha of 0.77. However, we advise investors to further question Sunopta expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sunopta'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 Sunopta'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.

While other entities under the packaged foods industry are still a bit expensive, Sunopta may offer a potential longer-term growth to stakeholders. To conclude, as of the 3rd of March 2021, we see that Sunopta follows the market closely. The company is overvalued with below average odds of distress within the next 24 months. However, our up-to-date 30 days buy-hold-sell advice on the company is Strong Buy.

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 Gabriel Shpitalnik do not own shares of Sunopta. Please refer to our Terms of Use for any information regarding our disclosure principles.

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