By analyzing existing technical and fundamental indicators between Hollyfrontier Corp and World, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in World with a short position in Hollyfrontier Corp. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Hollyfrontier Corp has an asset utilization ratio of 186.81 percent. This suggests that the company is making $1.87 for each dollar of assets. An increasing asset utilization means that Hollyfrontier Corp is more efficient with each dollar of assets it utilizes for everyday operations.
How important is HollyFrontier's Liquidity
HollyFrontier
financial leverage refers to using borrowed capital as a funding source to finance HollyFrontier ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. HollyFrontier 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 HollyFrontier'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 HollyFrontier'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 HollyFrontier's total debt and its cash.
What is driving HollyFrontier 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 product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at Hollyfrontier Corp revenue. Based on the latest financial disclosure, Hollyfrontier Corp reported 15.67
B of revenue. This is 68.15% lower than that of the Energy sector and 96.2% lower than that of the
Oil & Gas Refining & Marketing industry. The revenue for all United States stocks is 66.09% lower than that of the stock. As for World Fuel we see revenue of 26.1
B, which is 93.67% lower than that of the Oil & Gas Refining & Marketing
| Hollyfrontier | 15.67 Billion |
| Sector | 9.43 Billion |
| World | 26.1 Billion |
How will Hollyfrontier investors react to the next slip?
Current downside deviation is at 2.43. Hollyfrontier Corp currently demonstrates below-average downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.21. However, we advise investors to further question Hollyfrontier Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Hollyfrontier Corp'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 Hollyfrontier Corp'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.
Hollyfrontier Corp Implied Volatility
Hollyfrontier Corp's implied volatility exposes the market's sentiment of Hollyfrontier Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Hollyfrontier Corp'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 Hollyfrontier Corp stock will not fluctuate a lot when Hollyfrontier Corp's options are near their expiration.
Our Conclusion on Hollyfrontier Corp
Whereas some companies under the oil & gas refining & marketing industry are still a bit expensive, Hollyfrontier Corp may offer a potential longer-term growth to investors. With an optimistic outlook on your 90 days horizon, it may be a good time to buy new shares of Hollyfrontier or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. 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 Hollyfrontier Corp.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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 Gabriel Shpitalnik do not own shares of HollyFrontier. Please refer to our
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