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TBAKF -- USA Stock  

USD 1.42  0.02  1.43%

It looks like INDITEX IND will be up for a correction faster as its share price went up 0.99% today to Ted Baker's 4.43%As many investors are getting excited about consumer cyclical space, Ted Baker and INDITEX IND may be going in opposite directions. We are going to discuss some of the competitive aspects of both TBAKF and INDITEX.
Published over three weeks ago
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Should you quit your INDITEX IND (OTC:IDEXY) and Ted Baker (OTC:TBAKF) positions after an ascent?
By analyzing existing fundamental drivers between Ted Baker and INDITEX, 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 INDITEX with a short position in Ted Baker. 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. Ted Baker has an asset utilization ratio of 201.96 percent. This indicates that the company is making $2.02 for each dollar of assets. An increasing asset utilization means that Ted Baker Ord 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 TBAKF or INDITEX is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Ted Baker's Liquidity

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

Correlation Between TBAKF and INDITEX IND DE

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 Ted Baker together with similar or unrelated positions with a negative correlation. For example, you can also add INDITEX IND to your portfolio. If INDITEX IND is not perfectly correlated to Ted Baker 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 Ted Baker 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 TBAKF and IDEXY for more information.

Breaking down Ted Baker Further

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 take a closer look at Ted Baker revenue. Based on the latest financial disclosure, Ted Baker Ord reported 795.74 M of revenue. This is 88.84% lower than that of the Consumer Cyclical sector and significantly higher than that of the Apparel Retail industry. The revenue for all United States stocks is 91.57% higher than that of the firm. As for INDITEX IND we see revenue of 30.07 B, which is much higher than that of the Apparel Retail

30.1 B
TBAKF795.74 Million2.58
IDEXY30.07 Billion97.42

Anything left for Ted Baker after the dip?

Latest value at risk indicator falls down to -7.5. Possible price growth? Ted Baker Ord shows above-average downside volatility for the selected time horizon. We advise investors to inspect Ted Baker Ord further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Ted Baker future alpha.

Our Conclusion on Ted Baker

Although many of the other players in the apparel retail industry are either recovering or due for a correction, Ted Baker may not be performing as strong as the other in terms of long-term growth potentials. To sum up, as of the 31st of December 2020, our analysis shows that Ted Baker almost neglects market trends. The firm is overvalued and projects below average probability of financial unrest for the next 2 years. Our final 30 days 'Buy-Sell' recommendation on the firm is Strong Sell.

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 Ted Baker Ord. Please refer to our Terms of Use for any information regarding our disclosure principles.

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