In the retail world, timing can be everything, and Xcel Brands (NASDAQ: XELB) is a case in point. Despite facing a challenging fiscal landscape with a net loss of 19.4M and a profit margin of -1.79, the company is strategically positioned in the consumer cyclical sector, specifically within specialty retail. With total revenue at 17.8M against a cost of revenue of 23.7M, the numbers might seem daunting at first glance. However, the enterprise value of 28.2M and a price-to-sales ratio of 1.72 suggest that the market sees potential for growth. The company's low debt-to-equity ratio of 0.1% and significant insider ownership at 40.83% indicate a strong internal belief in its future prospects. While the return on equity stands at -0.36, the strategic focus on capitalizing on bullish momentum could provide a turnaround opportunity for investors willing to take a calculated risk. With millennials showing keen interest in the specialty retail sector, it's worth taking a closer look at Xcel Brands. Why do we remain optimistic about its potential for a full recovery? How is the company valued in 2024? Let's explore Xcel Brands' valuation to provide investors with clearer insights for making informed decisions.
We determine the current worth of Xcel Brands using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Xcel Brands based exclusively on its
fundamental and basic
technical indicators. By analyzing Xcel Brands's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Xcel Brands's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Xcel Brands. We calculate exposure to Xcel Brands's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Xcel Brands's related companies.
Watch out for price decline
Please consider monitoring Xcel Brands on a daily basis if you are holding a position in it. Xcel Brands is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Xcel Brands stock to be traded above the $1 level to remain listed. If Xcel Brands stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
Xcel Brands Investment Alerts
Xcel investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Xcel Brands performance across your portfolios.Please check all
investment alerts for Xcel
Xcel Brands Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Xcel value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Xcel Brands competition to find
correlations between indicators driving the intrinsic value of Xcel.
Xcel Brands Gross Profit
Xcel Brands Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Xcel Brands 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 Xcel Brands Gross Profit growth over the last 10 years. Please check Xcel Brands'
gross profit and other
fundamental indicators for more details.
An Additional Perspective On Xcel Brands
The current bullish price patterns experienced by current Xcel Brands shareholders may raise some interest from investors as it is trading at a share price of
0.73 on very low momentum in trading volume. The company directors and management have been very successful in rebalancing the company assets at opportune times to take advantage of market volatility in
October. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.24. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Xcel Brands partners.
| 2023 | 2024 (projected) |
Dividend Yield | 0.1 | 0.088 | Price To Sales Ratio | 1.43 | 1.36 |
Margins Breakdown
Xcel profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Xcel Brands itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Xcel Brands profit margins.
| Pretax Profit Margin | (1.12) |
| Operating Profit Margin | (1.15) |
| Net Profit Margin | (1.24) |
| Gross Profit Margin | (0.32) |
Xcel Brands Market Cap is somewhat stable at the moment. Further, Xcel Brands Enterprise Value is decreasing over the last 8 years.
Xcel Brands Market Cap is decreasing over the last 8 years. The current value of Xcel Brands Market Cap is 17,103,354. Further, Xcel Brands Enterprise Value is somewhat stable at the moment. Buy low, sell high is a mantra every investor knows, and Xcel Brands (NASDAQ: XELB) might just be a fitting example of this strategy. With a market capitalization of $17.29 million and a price-to-book ratio of 0.38x, the stock appears undervalued, presenting an intriguing opportunity for those looking to capitalize on its potential upside. Despite reporting a net income loss of $21.1 million, the company maintains a healthy current ratio of 2.38x, suggesting it has the liquidity to manage its short-term obligations. While the probability of bankruptcy stands at a concerning 64.22%, the significant insider ownership of 40.83% indicates confidence from those closest to the company. Investors should weigh these factors carefully, as Xcel Brands could offer significant rewards for those willing to navigate its risks..
Our perspective of the current Xcel Brands slip
Xcel Brands is showing signs of reduced volatility, as evidenced by a drop in its coefficient of variation to 2056.38. This decline might indicate that the stock's price movements are becoming more stable, which could catch the eye of investors looking for potential opportunities. Although the figure remains high, the decrease suggests a trend towards stabilization, offering some optimism for those considering market moves. However, it's important to consider this alongside other data before making trading decisions. As of November 17, 2024, Xcel Brands reports a mean deviation of 2.36, a downside deviation of 3.85, and a market risk-adjusted performance of -1.74. The technical analysis model helps evaluate these technical drivers in relation to the company's fundamental indicators.
The Current Takeaway on Xcel Brands Investment
Whereas other entities under the apparel manufacturing industry are still a bit expensive, Xcel Brands may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Xcel valuation and our trade advice on Xcel Brands is due to the recent market swings and your selection of investing horizon. 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 Xcel Brands.
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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 Xcel Brands. Please refer to our
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