In today's review, we will run through some ideas when considering Big 5 for a long position. We will recap why latest Big 5 price moves may cause a slide in August. Big 5 Tangible Asset Value is fairly stable at the moment as compared to the past year. Big 5 reported Tangible Asset Value of 445.06 Million in 2019. Working Capital is likely to grow to about 176.9 M in 2020, whereas Free Cash Flow is likely to drop (21.4 M) in 2020. Will the latest Big 5 risk factors impact the value of the stock? We estimate Big 5 as currently undervalued. The real value is approaching 2.44 per share. What is Big 5 Target Price Odds to finish over Current Price? Depending on a normal probability distribution, the odds of Big 5 to move above the current price in 30 days from now is about 22.96%. The Big 5 Sporting probability density function shows the probability of Big 5 Stock to fall within a particular range of prices over 30 days. Given the investment horizon of 30 days, the stock has beta coefficient of 1.9821 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average . However, if the benchmark returns are expected to be negative, Big 5 will likely underperform. Moreover, the company has an alpha of 1.4714, implying that it can generate a 1.47 percent excess return over DOW after adjusting for the inherited market risk (beta).
Big 5 currently holds 416.08
M in liabilities with Debt to Equity (D/E) ratio of 2.38, implying the firm greatly relies on financing operations through barrowing. This firm has a current ratio of 1.82, which is within standard range for the sector. We provide buy or sell advice to complement the prevailing
expert consensus on Big 5 Sporting. Our dynamic recommendation engine makes use of a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Big 5
financial leverage refers to using borrowed capital as a funding source to finance Big 5 Sporting ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Big 5 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 Big 5'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 Big 5'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 Big 5's total debt and its cash.
Big 5 preserves 2.5 k of number of employees. The latest price spikes of Big 5 Sporting could raise concerns from investors as the firm closed today at a share price of
1.8 on very low momentum in volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in
August. The stock standard deviation of daily returns for 30 days investing horizon is currently 7.47. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Big 5 partners.
Big 5 Average Assets is increasing over the last 5 years. Big 5 Earnings Before Interest Taxes and Depreciation Amortization USD is fairly stable at the moment. Furthermore, Big 5 Revenue Per Employee is increasing over the last 5 years. The previous year's value of Big 5 Revenue Per Employee was 105,017.
Our take on today Big 5 climb
Coefficient of variation is down to 424.53 as of today. Big 5 Sporting is displaying above-average volatility of 7.63 over the selected time horizon. Investors should scrutinize Big 5 Sporting independently to ensure intended market timing strategies are aligned with expectations about Big 5 volatility.
Despite some firms under specialty retail industry are still a bit expensive, Big 5 may offer a potential longer-term growth to insiders. To sum up, as of 9th of July 2020, we see that Big 5 actively responds to the market. The venture is
undervalued with
below average chance of financial distress within the next 24 months. Our final 30 days 'Buy vs Sell' recommendation on the venture is
Hold. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither acquire new shares of Big 5 nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Big 5.
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.
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