By analyzing existing basic indicators between Kaspien Holdings and Aarons, 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 Aarons with a short position in Kaspien Holdings. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
One of the ways to look at asset utilization of Kaspien is to check how much profit was generated for every dollar of assets it reports. Kaspien Holdings secures a negative usage of assets of -16.28 %, losing $0.16 for each dollar of assets held by the firm. Inadequate asset utilization conveys that the company is being less effective with each dollar of assets it secures. Strictly speaking, asset utilization of Kaspien Holdings shows how discouraging it operates for each dollar spent on its assets.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Kaspien or Quoin is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Kaspien Holdings's Liquidity
Kaspien Holdings
financial leverage refers to using borrowed capital as a funding source to finance Kaspien Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Kaspien Holdings 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 Kaspien Holdings' 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 Kaspien Holdings' 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 Kaspien Holdings's total debt and its cash.
Correlation Between Kaspien and Quoin Pharmaceuticals
In general, Pink Sheet analysis is a method for investors and traders to make individual buying and selling decisions. Pink Sheet correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Kaspien Holdings together with similar or unrelated positions with a negative correlation. For example, you can also add Quoin Pharmaceuticals to your portfolio. If Quoin Pharmaceuticals is not perfectly correlated to Kaspien Holdings it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Kaspien Holdings, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Kaspien Holdings and Quoin Pharmaceuticals in your portfolio? Please note if you are using this as a pair-trade strategy between Kaspien Holdings and Quoin Pharmaceuticals, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between KSPN and QNRX for more information.
Going after Kaspien Financials
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
Now, let's check Kaspien Holdings revenue. Based on the latest financial disclosure, Kaspien Holdings reported 134.89
M of revenue. This is 96.69% lower than that of the Technology sector and significantly higher than that of the
Software—Application industry. The revenue for all United States stocks is 98.57% higher than that of Kaspien Holdings. As for Aarons Holdings we see revenue of 1.96
B, which is much higher than that of the Software—Application
| KSPN | 134.89 Million | 6.44 |
| Sector | 0.0 | 0.0 |
| AAN | 1.96 Billion | 93.56 |
Will Kaspien Holdings continue to go insane?
The total risk alpha is down to 2.78 as of today. Kaspien Holdings is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to ensure that related market timing strategies are aligned with all the expectations about Kaspien Holdings implied risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Kaspien Holdings' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Kaspien Holdings' 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.
Our Bottom Line On Kaspien Holdings
Whereas some companies in the software—application industry are either recovering or due for a correction, Kaspien may not be as strong as the others in terms of longer-term growth potentials. The bottom line, as of the 13th of September 2022, we believe that at this point, Kaspien Holdings is
undervalued with
average probability of distress within the next 2 years. Our final 'Buy-vs-Sell' recommendation on the company is
Cautious Hold.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of Kaspien Holdings. Please refer to our
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