Agrify Corp, operating in the Farm & Heavy Construction Machinery sector, has seen its quarterly revenue growth decline by
41%, raising concerns about its financial health. With a return on assets of negative 0.18, potential investors might want to weigh the risks carefully before adding this stock to their portfolio.
Main Points
To compare Agrify Corp and ENGlobal, you can look at their technical and fundamental indicators to see how market fluctuations impact their stock prices. This analysis can help determine if combining them in a portfolio might reduce overall market risk. A potential strategy is pair trading, where you take a long position in ENGlobal and a short position in Agrify Corp. For more details, check out our [pair correlation module](#) on their relationship.
Now, let's dive into the numbers. Agrify Corp's asset utilization ratio stands at 37.26%, meaning it generates $0.37 in revenue for every dollar of assets. A rising asset utilization ratio indicates that Agrify is becoming more efficient in using its assets for daily operations.
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 Agrify or MYR is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Agrify Corp's Liquidity
Agrify Corp
financial leverage refers to using borrowed capital as a funding source to finance Agrify Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Agrify Corp 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 Agrify Corp'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 Agrify Corp'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 Agrify Corp's total debt and its cash.
Correlation Between Agrify and MYR Group
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock 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 Agrify Corp together with similar or unrelated positions with a negative correlation. For example, you can also add MYR to your portfolio. If MYR is not perfectly correlated to Agrify Corp 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 Agrify Corp, 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 Agrify Corp and MYR in your portfolio? Please note if you are using this as a pair-trade strategy between Agrify Corp and MYR, 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 AGFY and MYRG for more information.
What is driving Agrify Corp Investor Appetite?
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 products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check Agrify Corp revenue. Based on the latest financial disclosure, Agrify Corp reported 16.87
M of revenue.
This is 99.52% lower than that of the Machinery sector and 99.7% lower than that of the
Industrials industry. The revenue for all United States stocks is 99.82% higher than that of Agrify Corp. As for ENGlobal we see revenue of 39.04
M, which is 99.31% lower than that of the Industrials
| AGFY | 16.87 Million | 0.47 |
| Sector | 3.5 Billion | 98.43 |
| ENG | 39.04 Million | 1.1 |
"Don't put all your eggs in one basket" is a timeless piece of advice that resonates well when considering stocks like Agrify Corp. With a staggering probability of bankruptcy at 96%, investors should tread carefully. Agrify's financials reveal a concerning picture, with an EBITDA loss of 10.6 million and a negative return on equity of 18.32%. Despite having a current valuation of 81.68 million, the company's cash reserves are alarmingly low at just 430,000. Given these figures, it might be prudent to reassess your portfolio and consider whether Agrify aligns with your risk tolerance and investment goals..
Momentum Analysis of Agrify Corp suggests possible reversal in January
Agrify Corp's stock is showing promising signs of a potential turnaround, highlighted by a recent drop in its expected shortfall indicator to -16.14. This measure, which assesses the risk of significant losses, suggests the stock might be ready for a rebound. Investors often see such indicators as a signal for a potential price increase, especially when momentum analysis hints at a reversal. As January approaches, traders might find it worthwhile to keep an eye on Agrify, as current market conditions could lead to a notable change in its stock performance. As of December 31st, Agrify Corp has a Risk Adjusted Performance of 0.2188, a downside deviation of 10.91, and a mean deviation of 12.89.
Technical analysis can help investors use historical prices and volume patterns to predict future price directions.In considering whether Agrify Corp's stock will continue its upward trend, it's essential to weigh several factors. The company's valuation market value sits at
29.31, suggesting that while there is potential for growth, the market might already have priced in some optimism. Analysts generally hold a "Buy" consensus, reflecting a positive sentiment around Agrify's future prospects. However, the highest estimated target price is only 8.33, indicating that expectations are somewhat tempered. Given these dynamics, investors should approach Agrify with cautious optimism, keeping a close watch on market trends and company developments that could influence its stock trajectory..
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
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