By analyzing existing essential indicators between Synalloy and Arcelor, 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 Arcelor with a short position in Synalloy. 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. Synalloy has an asset utilization ratio of 197.97 percent. This denotes that the company is making $1.98 for each dollar of assets. An increasing asset utilization means that Synalloy 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 Synalloy or American is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Synalloy's Liquidity
Synalloy
financial leverage refers to using borrowed capital as a funding source to finance Synalloy ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Synalloy 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 Synalloy'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 Synalloy'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 Synalloy's total debt and its cash.
Correlation Between Synalloy and American Vanguard
In general, Delisted 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 Synalloy together with similar or unrelated positions with a negative correlation. For example, you can also add American Vanguard to your portfolio. If American Vanguard is not perfectly correlated to Synalloy 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 Synalloy, 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 Synalloy and American Vanguard in your portfolio? Please note if you are using this as a pair-trade strategy between Synalloy and American Vanguard, 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 SYNL and AVD for more information.
Breaking it down a bit more
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 Synalloy revenue. Based on the latest financial disclosure, Synalloy reported 295.06
M of revenue. This is 96.25% lower than that of the Basic Materials sector and 97.64% lower than that of the
Steel industry. The revenue for all United States stocks is 96.87% higher than that of Synalloy. As for Arcelor Mittal we see revenue of 57.97
B, which is 363.82% higher than that of the Steel
| SYNL | 295.06 Million | 0.45 |
| Sector | 7.86 Billion | 11.89 |
| MT | 57.97 Billion | 87.67 |
Our take on today Synalloy pull down
New risk adjusted performance is at -0.18. Synalloy exhibits very low volatility with skewness of 1.17 and kurtosis of 4.96. However, we advise investors to further study Synalloy technical indicators to make sure all market info is available and is reliable.
Our Takeaway on Synalloy Investment
While some companies in the steel industry are either recovering or due for a correction, Synalloy may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 3rd of September 2020, our research shows that Synalloy is a rather somewhat reliable investment opportunity with a
close to average chance of bankruptcy in the next two years. From a slightly different view, the entity currently appears to be
undervalued. However, our present 30 days buy-or-sell advice on the company is
Sell.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Synalloy. Please refer to our
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