Analyzing key indicators for CPI Aerostructures and Expensify can help assess the impact of market volatility on both companies' stock prices. This analysis can also determine if combining these stocks in a portfolio can mitigate market risk. Pair trading strategies can be used, such as matching a long position in Expensify with a short position in CPI Aerostructures. For more details, refer to our pair correlation module.
Let's examine the assets. The asset utilization ratio, which indicates the revenue generated per dollar of assets, is 112.4% for CPI Aerostructures. This suggests that the company earns $1.12 for each dollar of assets. A rising asset utilization ratio indicates that CPI Aerostructures is becoming more efficient in using its assets for daily operations.
Main Considerations
CPI Aerostructures (USA Stocks:CVU) presents an intriguing investment opportunity in the Aerospace & Defense industry. With a market capitalization of
29.7M, the company has demonstrated a robust profit margin of 19.62% and a net income from continuing operations of
9.3M. The company's return on assets stands at 5.03%, indicating efficient use of its total assets valued at
76.93M. Given its current valuation of
50.43M and a target price of 4, investors may want to consider CPI Aerostructures for potential gains in July.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in CPI Aerostructures. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on CPI Aerostructures, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is CPI Aerostructures's Liquidity
CPI Aerostructures
financial leverage refers to using borrowed capital as a funding source to finance CPI Aerostructures ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. CPI Aerostructures 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 CPI Aerostructures' 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 CPI Aerostructures' 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 CPI Aerostructures's total debt and its cash.
CPI Aerostructures Gross Profit
CPI Aerostructures Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing CPI Aerostructures 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 CPI Aerostructures Gross Profit growth over the last 10 years. Please check CPI Aerostructures'
gross profit and other
fundamental indicators for more details.
Another angle On CPI Aerostructures
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
Lets now check CPI Aerostructures revenue. Based on the latest financial disclosure, CPI Aerostructures reported 86.47
M of revenue.
This is 97.53% lower than that of the Aerospace & Defense sector and 99.28% lower than that of the
Industrials industry. The revenue for all United States stocks is 99.08% higher than that of CPI Aerostructures. As for Expensify we see revenue of 150.69
M, which is 98.74% lower than that of the Industrials
| CVU | 86.47 Million | 2.31 |
| Sector | 3.5 Billion | 93.65 |
| EXFY | 150.69 Million | 4.03 |
As Warren Buffet once wisely stated, be fearful when others are greedy and greedy when others are fearful. This principle applies when considering the investment prospects of CPI Aerostructures. Despite the company's net income of $17.2M and a healthy gross profit of $16.3M, the stock is currently undervalued with a price to book ratio of 1.66X, suggesting potential for significant upside. However, investors should be aware of the company's high probability of bankruptcy at 41.49% and a total debt of $25.21M. Given these factors, while the stock holds potential for July gains, it should be approached with caution due to its high-risk nature..
CPI Aerostructures has 92 percent chance to finish above $2.25 in July
CPI Aerostructures' stock demonstrates promising stability, with a decreased standard deviation of 2.74, indicating less price volatility. Coupled with other positive market indicators, there's a 92% likelihood that the stock will exceed $2.25 in July. Investors should consider this potential growth when making portfolio decisions. CPI Aerostructures' stock exhibits low volatility, with a skewness of 1.07 and kurtosis of 4.49. Understanding market volatility trends can help investors time the market effectively. Utilizing volatility indicators allows traders to measure CPI Aerostructures' stock risk against market volatility during both bullish and bearish trends.
The increased volatility of bear markets can directly affect CPI Aerostructures' stock price, causing investor stress as share values drop. This often prompts investors to rebalance their portfolios by purchasing diverse financial instruments as prices decline.In conclusion, the recent reset of CPI Aerostructures (USA Stocks:CVU) presents a precarious investment scenario. The analyst overall consensus leans towards a
Strong Sell, with a possible downside price of
0.023. The valuation real value stands at 1.99, significantly lower than the valuation market value of 2.3. The analyst target price estimated value is 4, but the naive expected forecast value is only 1.51, suggesting a potential overvaluation. With the analyst lowest estimated target price at 3.64 and the highest at 4.44, the possible upside price is 4.24. Given these figures, investors should exercise caution when considering this stock..
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of CPI Aerostructures. Please refer to our
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