Michaels Companies Cash And Equivalents vs. Beta
Based on Michaels Companies' profitability indicators, The Michaels Companies may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in May. Profitability indicators assess Michaels Companies' ability to earn profits and add value for shareholders.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product.
Please note, there is a significant difference between Michaels Companies' value and its price as these two are different measures arrived at by different means. Investors typically determine if Michaels Companies is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Michaels Companies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
For Michaels Companies profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Michaels Companies to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well The Michaels Companies utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Michaels Companies's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of The Michaels Companies over time as well as its relative position and ranking within its peers.
Michaels |
The Michaels Companies Beta vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Michaels Companies's current stock value. Our valuation model uses many indicators to compare Michaels Companies value to that of its competitors to determine the firm's financial worth. The Michaels Companies is considered to be number one stock in cash and equivalents category among related companies. It is considered to be number one stock in beta category among related companies . The ratio of Cash And Equivalents to Beta for The Michaels Companies is about 357,357,357 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Michaels Companies by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Michaels Companies' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Michaels Companies' earnings, one of the primary drivers of an investment's value.Michaels Beta vs. Cash And Equivalents
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
Michaels Companies |
| = | 1.19 B |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Michaels Companies |
| = | 3.33 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
Michaels Beta Comparison
Michaels Companies is currently under evaluation in beta category among related companies.
Beta Analysis
As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Michaels Companies will likely underperform.
Michaels Companies Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Michaels Companies, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Michaels Companies will eventually generate negative long term returns. The profitability progress is the general direction of Michaels Companies' change in net profit over the period of time. It can combine multiple indicators of Michaels Companies, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
The Michaels Companies, Inc. owns and operates arts and crafts specialty retail stores for hobbyist and do-it-yourself home decorators in the United States and Canada. As of April 14, 2021, The Michaels Companies, Inc. was taken private. Michaels Comp operates under Specialty Retail classification in the United States and is traded on NASDAQ Exchange. It employs 11000 people.
Michaels Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Michaels Companies. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Michaels Companies position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Michaels Companies' important profitability drivers and their relationship over time.
Use Michaels Companies in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Michaels Companies position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Michaels Companies will appreciate offsetting losses from the drop in the long position's value.Michaels Companies Pair Trading
The Michaels Companies Pair Trading Analysis
The ability to find closely correlated positions to Microsoft could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microsoft when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Microsoft - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Microsoft to buy it.
The correlation of Microsoft is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Microsoft moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microsoft moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Microsoft can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Michaels Companies position
In addition to having Michaels Companies in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Adviser Favorites Thematic Idea Now
Adviser Favorites
Financial advisors frequently recommend that individuals diversify their investment portfolios with a mix of different types of stocks. These can include blue-chip stocks, growth stocks, and dividend stocks. The Adviser Favorites theme has 17 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Adviser Favorites Theme or any other thematic opportunities.
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Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Consideration for investing in Michaels Stock
If you are still planning to invest in The Michaels Companies check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Michaels Companies' history and understand the potential risks before investing.
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