Thinking to sell Wolverine (NYSE:WWW) based on its current debt commitments?


USD 17.03  0.15  0.87%   

Wolverine World Wide is scheduled to announce its earnings today. Wolverine World Receivables Turnover is fairly stable at the moment as compared to the past year. Wolverine World reported Receivables Turnover of 8.24 in 2021. Accounts Payable Turnover is likely to climb to 13.77 in 2022, whereas Earnings before Tax are likely to drop slightly above 130.2 M in 2022. Although many aggressive traders are getting into consumer cyclical space, Wolverine World Wide may or may not be your first choice. We will evaluate why recent Wolverine World price moves suggest a bounce in September.
Published over a month ago
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The company has 1.25 B in debt with debt to equity (D/E) ratio of 2.03, meaning that the entity heavily relies on borrowing funds for operations.
On a scale of 0 to 100, Wolverine World holds a performance score of 9. The firm maintains a market beta of 1.4314, which attests to a somewhat significant risk relative to the market. Let's try to break down what Wolverine'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, Wolverine World will likely underperform. Although it is vital to follow Wolverine World Wide historical price patterns, it is good to be conservative about what you can do with the information regarding equity current price history. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By examining Wolverine World Wide technical indicators, you can presently evaluate if the expected return of 0.39% will be sustainable into the future. Please utilizes Wolverine World Wide semi variance, rate of daily change, and the relationship between the value at risk and kurtosis to make a quick decision on whether Wolverine World Wide historical returns will revert.
Wolverine World financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Wolverine World, including all of Wolverine World'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 Wolverine World assets, the company is considered highly leveraged. Understanding the composition and structure of overall Wolverine World 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.

How important is Wolverine World's Liquidity

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

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Wolverine World, but it might be worth checking our own buy vs. sell analysis

Another Outlook On Wolverine World

The latest climb in Wolverine World Wide short term price appreciation may raise some interest from sophisticated investors as it is trading at a share price of 22.55 on 387,902 in trading volume. The company executives have successfully maneuvered the company at convenient times to take advantage of all market conditions in July. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.07. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Wolverine World Wide partners.

Asset Breakdown

Assets Non Current
Current Assets
Total Assets2.64 Billion
Current Assets1.02 Billion
Assets Non Current200.58 Million
Goodwill53.01 Million
Tax Assets37.2 Million

Our perspective of the latest Wolverine World climb

The treynor ratio is down to 0.18 as of today.
As of the 10th of August, Wolverine World maintains the Mean Deviation of 2.48, downside deviation of 3.17, and Market Risk Adjusted Performance of 0.1925. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Wolverine World Wide, as well as the relationship between them. Specifically, you can use this information to find out if the company will indeed mirror its model of past data patterns, or the prices will eventually revert. We are able to interpolate and break down nineteen technical drivers for Wolverine World Wide, which can be compared to its rivals. Please check out Wolverine World Wide value at risk, and the relationship between the jensen alpha and semi variance to decide if Wolverine World Wide is priced fairly, providing market reflects its latest price of 22.55 per share. Given that Wolverine World Wide has jensen alpha of 0.2792, we strongly advise you to confirm Wolverine World Wide's prevalent market performance to make sure the company can sustain itself at a future point.

Our Final Take On Wolverine World

While some companies within the footwear & accessories industry are still a little expensive, even after the recent corrections, Wolverine World may offer a potential longer-term growth to sophisticated investors. While some sophisticated investors may not share our view, we believe it may be a good time to increase your existing holdings in Wolverine. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Wolverine World.

Editorial Staff

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 Wolverine World Wide. Please refer to our Terms of Use for any information regarding our disclosure principles.

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