Blue Apron Holdings reported the previous year's revenue of 470.38
M. Net Loss for the year was (88.38
M) with profit before overhead, payroll, taxes, and interest of 168.61
M. The company has Profit Margin (PM) of
(18.79) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of
(15.12) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.15.
The performance of Blue Apron Holdings, in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Blue Apron's
stock prices. When investing in Blue Apron, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Blue Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Blue Apron carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
How important is Blue Apron's Liquidity
Blue Apron
financial leverage refers to using borrowed capital as a funding source to finance Blue Apron Holdings, ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Blue Apron 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 Blue Apron'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 Blue Apron'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 Blue Apron's total debt and its cash.
A Deeper Perspective
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Blue Apron has an asset utilization ratio of 162.42 percent. This suggests that the company is making $1.62 for each dollar of assets. An increasing asset utilization means that Blue Apron Holdings is more efficient with each dollar of assets it utilizes for everyday operations.
Blue Apron has 96 percent chance to stay above $2.69 in 2 months
Latest maximum drawdown is at 45.46. Blue Apron Holdings is displaying above-average volatility over the selected time horizon. Investors should scrutinize Blue Apron Holdings independently to ensure intended market timing strategies are aligned with expectations about Blue Apron volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Blue Apron's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Blue Apron's 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.
Blue Apron Implied Volatility
Blue Apron's implied volatility exposes the market's sentiment of Blue Apron Holdings stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Blue Apron's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Blue Apron stock will not fluctuate a lot when Blue Apron's options are near their expiration.
Our Final Take On Blue Apron
Whereas some companies in the internet retail industry are either recovering or due for a correction, Blue Apron may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither trade nor exit any shares of Blue Apron at this time. The Blue Apron Holdings risk-reward trade off is not appealing enough to do any trading. 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 Blue Apron.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
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 Blue Apron Holdings,. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
[email protected]
