Zumiez Stock Story


USD 30.75  2.22  7.78%   

T.J. Maxx would continue recover faster as its shares surged to 0.56 percent against Zumiez's 0.4877%. As many baby boomers are still indifferent towards consumer cyclical space, we will concentrate on both Zumiez Inc as well as TJX Companies. We are going to inspect some of the competitive aspects of both Zumiez and T.J. Maxx.
Published over two months ago
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Will Zumiez (NASDAQ:ZUMZ) investors shift to T.J. Maxx (NYSE:TJX)?

By analyzing existing primary indicators between Zumiez and T.J. Maxx, 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 T.J. Maxx with a short position in Zumiez. 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. Zumiez has an asset utilization ratio of 284.55 percent. This suggests that the company is making $2.85 for each dollar of assets. An increasing asset utilization means that Zumiez Inc is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Zumiez's Liquidity

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

How does Zumiez utilize its cash?

To perform a cash flow analysis of Zumiez, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Zumiez is receiving and how much cash it distributes out in a given period. The Zumiez cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Zumiez Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Zumiez reported Net Cash Flow from Operations of 134.95 Million in 2021

Exercise or conversion by Adam Ellis of 3875 shares of Zumiez subject to Rule 16b-3

Legal trades by Zumiez insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Zumiez insider trading alert for exercise of restricted stock units by Adam Ellis, President International, on 16th of June 2022. This event was filed by Zumiez Inc with SEC on 2022-06-16. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down

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 Zumiez revenue. Based on the latest financial disclosure, Zumiez Inc reported 1.18 B of revenue. This is 83.45% 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 87.49% higher than that of Zumiez. As for T.J. Maxx we see revenue of 48.55 B, which is much higher than that of the Apparel Retail

48.5 B
ZUMZ1.18 Billion2.37
TJX48.55 Billion97.63

Zumiez may start a bounce back in July

Zumiez current variance rises over 13.03. Zumiez Inc exhibits very low volatility with skewness of 0.4 and kurtosis of 1.6. However, we advise investors to further study Zumiez Inc technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Zumiez'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 Zumiez'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.

Zumiez Implied Volatility

Zumiez's implied volatility exposes the market's sentiment of Zumiez Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Zumiez's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Zumiez stock will not fluctuate a lot when Zumiez's options are near their expiration.

Our Conclusion on Zumiez

While some firms under the apparel retail industry are still a bit expensive, Zumiez may offer a potential longer-term growth to investors. In closing, as of the 2nd of June 2022, our analysis shows that Zumiez actively responds to the market. The company is undervalued and projects low odds of financial turmoil for the next 2 years. However, our final 90 days buy-hold-sell recommendation on the company is Sell.

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 Ellen Johnson do not own shares of Zumiez Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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