USA Truck is overvalued at 7.48 per share with modest projections ahead. USA Truck holds a
performance score of 14 on a scale of zero to a hundred. The entity owns a Beta (Systematic Risk) of 1.2693, which indicates a somewhat significant risk relative to the market. Let's try to break down what USA Truck's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, USA Truck will likely underperform. Although it is vital to follow
USA Truck existing
price patterns, it is good to be conservative about what you can do with the information regarding equity
price patterns. Our approach towards measuring
future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and
technical indicators. To evaluate if USA Truck expected return of 1.01 will be sustainable into the future, we have found twenty-one different
technical indicators, which can help you to check if the expected returns are sustainable. Use USA Truck
treynor ratio, and the
relationship between the
standard deviation and
downside variance to analyze future returns on USA Truck.
The performance of USA Truck in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence USA Truck's
stock prices. When investing in USA Truck, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, USA Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as USA Truck carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
How important is USA Truck's Liquidity
USA Truck
financial leverage refers to using borrowed capital as a funding source to finance USA Truck ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. USA Truck 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 USA Truck'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 USA Truck'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 USA Truck's total debt and its cash.
Breaking down USA Truck Indicators
USA Truck shows a total of 8.69 Million outstanding shares. Over half of USA Truck outstanding shares are owned by
institutions. These institutions are typically referred to corporate investors that take positions in a given instrument to benefit from reduced trade commissions. Therefore, these
institutions are subject to different rules and regulation than regular investors in USA Truck. Please watch out for any change in the
institutional holdings of USA Truck as this could mean something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently
losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.
| 2014 | 2015 | 2019 | 2020 (projected) |
Interest Expense | 3.01 M | 2.24 M | 2.57 M | 3.48 M | Gross Profit | 259.96 M | 238.26 M | 274 M | 281.38 M |
Ownership Breakdown
Retail Investors19.59% | Insiders20.23% | Institutions60.18% |
| Retail Investors | 19.59 |
| Insiders | 20.23 |
| Institutions | 60.18 |
USA Truck showing sign of lower volatility
The standard deviation is down to 4.96 as of today. USA Truck shows above-average downside volatility for the selected time horizon. We advise investors to inspect USA Truck further and ensure that all market timing and asset allocation strategies are consistent with the estimation of USA Truck future alpha.
Our Bottom Line On USA Truck
Although some companies within the trucking industry are still a little expensive, even after the recent corrections, USA Truck may offer a potential longer-term growth to traders. Taking everything into account, as of the 27th of July 2020, we believe that at this point, USA Truck is
overvalued with
below average odds of financial turmoil within the next 2 years. Our ongoing buy-sell recommendation on the firm is
Strong Hold.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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 Ellen Johnson do not own shares of USA Truck. Please refer to our
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