The company runs under
Industrials sector within
Specialty Industrial Machinery industry.
The entity has a beta of 0.7164, which indicates possible diversification benefits within a given portfolio. Let's try to break down what Thermon's beta means in this case. As returns on the market increase, Thermon Group returns are expected to increase less than the market. However, during the bear market, the loss on holding Thermon Group will be expected to be smaller as well. Even though it is essential to pay attention to
Thermon Group Holdings current price movements, it is always good to be careful when utilizing equity historical returns. Our philosophy towards measuring any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Thermon Group Holdings exposes twenty-eight different technical indicators, which can help you to evaluate its performance.
Thermon Group Holdings has an expected return of -0.13%. Please be advised to validate Thermon Group
sortino ratio, as well as the
relationship between the semi variance and
rate of daily change to decide if
Thermon Group Holdings performance from the past will be repeated at some point in the near future.
Investing in Thermon Group, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Thermon Group along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Thermon Group. Your research has to be compared to or analyzed against Thermon Group's peers to derive any actionable benefits. When done correctly, Thermon Group's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Thermon Group Holdings.
How important is Thermon Group's Liquidity
Thermon Group
financial leverage refers to using borrowed capital as a funding source to finance Thermon Group Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Thermon Group 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 Thermon Group'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 Thermon Group'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 Thermon Group's total debt and its cash.
Thermon Group Gross Profit
Thermon Group Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Thermon Group previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Thermon Group Gross Profit growth over the last 10 years. Please check Thermon Group's
gross profit and other
fundamental indicators for more details.
Thermon Group Correlation with Peers
Investors in Thermon can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Thermon Group Holdings. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Thermon Group and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Thermon is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Thermon for more details
What is the case for Thermon Group Investors
Thermon Group Holdings owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.076, which indicates the firm had -0.076% of return per unit of risk over the last 3 months. Macroaxis standpoint towards measuring the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. Thermon Group Holdings exposes twenty-eight different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to validate Thermon Group
risk adjusted performance of
(0.11), and Coefficient Of Variation of
(1,187) to confirm the risk estimate we provide.
Will Thermon pull back in June 2022?
The risk adjusted performance is down to -0.11 as of today.
As of the 26th of May, Thermon Group has the
coefficient of variation of
(1,187), and Risk Adjusted Performance of
(0.11). In relation to
fundamental indicators, the
technical analysis model makes it possible for you to check existing technical drivers of Thermon Group Holdings, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We have analyze and collected data for nineteen
technical drivers for Thermon Group Holdings, which can be compared to its competition. Please validate
Thermon Group Holdings semi deviation,
jensen alpha, as well as the
relationship between the Jensen Alpha and
semi variance to decide if Thermon Group is priced more or less accurately, providing market reflects its prevalent price of 15.71 per share. Given that Thermon Group Holdings has
jensen alpha of
(0.11), we advise you to double-check Thermon Group Holdings's current market performance to make sure the company can sustain itself at a future point.
The Bottom Line
While some other companies in the specialty industrial machinery industry are either recovering or due for a correction, Thermon may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 26th of May 2022, our present 90 days Buy-Hold-Sell recommendation on the enterprise is
Strong Hold. We believe Thermon Group is currently
undervalued with
below average odds of distress for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Thermon Group Holdings. Please refer to our
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