In the world of investing, it's often said that volatility is the price you pay for performance. Amid the recent market turbulence, Plymouth Industrial REIT, a NYSE-listed player in the Industrial REIT industry, has been a subject of keen interest for investors. With a market valuation of $21.11 and a real value of $23.13, the stock presents a potential upside price of $22.36. The company, which operates in the diversified REITs service category, has seen a rate of daily change of 1.01 and a period momentum indicator of 0.22. As we delve deeper into the investment potential of Plymouth Industrial REIT, it's crucial to consider these factors alongside the broader market dynamics. With a 60-day investment horizon, Plymouth Industrial is projected to under-perform the market. Furthermore, it's nearly twice as volatile as its market benchmark. It trades about -0.02 of its potential returns per unit of risk, similar to the current rate of the Dow Jones Industrial. Many traditional traders are shying away from diversified REITs, making it beneficial to delve deeper into Plymouth Industrial REIT's current volatility patterns. Our focus will be to determine if the expected returns justify the company's volatility.
Volatility is a rate at which the price of Plymouth Industrial or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Plymouth Industrial may increase or decrease. In other words, similar to Plymouth's
beta indicator, it measures the risk of Plymouth Industrial and helps estimate the fluctuations that may happen in a short period of time. So if prices of Plymouth Industrial fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our
technical analysis page.
How important is Plymouth Industrial's Liquidity
Plymouth Industrial
financial leverage refers to using borrowed capital as a funding source to finance Plymouth Industrial REIT ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Plymouth Industrial 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 Plymouth Industrial'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 Plymouth Industrial'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 Plymouth Industrial's total debt and its cash.
Plymouth Industrial Gross Profit
Plymouth Industrial Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Plymouth Industrial 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 Plymouth Industrial Gross Profit growth over the last 10 years. Please check Plymouth Industrial's
gross profit and other
fundamental indicators for more details.
Plymouth Industrial Volatility Drivers
Plymouth Industrial unsystematic risk is unique to Plymouth Industrial REIT and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Plymouth Industrial you can also buy
LXP Industrial Trust. You can also mitigate this risk by investing in the real estate sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Plymouth Industrial important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Plymouth Industrial income statement and balance sheet. Here are more
details about Plymouth volatility.
Click cells to compare fundamentals
Details
The small decline in market price for the last few months may encourage investors to take a closer look at the company as it is trading at a share price of
21.11 on very low momentum in trading volume. The company directors and management did not add much value to Plymouth Industrial investors in
May. However, diversifying your holdings with Plymouth Industrial REIT or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.29. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
| 2021 | 2022 | 2023 | 2024 (projected) |
Total Operating Expenses | 83.6M | 111.3M | 107.8M | 113.2M | Cost Of Revenue | 47.6M | 56.6M | 62.5M | 59.4M |
As Benjamin Graham once said, the stock market is a voting machine in the short term, but a weighing machine in the long term. Amid recent market volatility, Plymouth Industrial REIT's investment potential is worth assessing. With a market capitalization of $971.58M and a five-year return of 7.12%, the company has shown resilience. However, the stock's volatility, as indicated by a variance of 1.91 and a standard deviation of 1.38, suggests potential risk. Despite this, the company's target price of $24.78 and a potential upside of 2.07 indicate room for growth, making it a consideration for investors who can tolerate higher risk..
Will Plymouth pull back in July 2024?
Plymouth Industrial REIT has recently shown a standard deviation above 1.38, suggesting increased volatility and potential risk for investors. This could indicate an upcoming pullback in the stock. Given historical trends and current market conditions, investors should brace for a possible pullback in July 2024. It's vital, however, to keep an eye on market trends and adjust investment strategies accordingly. As of June 27, Plymouth Industrial has a Risk Adjusted Performance of -0.02, a coefficient of variation of -2,478, and a variance of 1.91. The technical analysis model, compared to fundamental indicators, lets you examine Plymouth Industrial's existing technical drivers and their interrelations. Please review Plymouth Industrial REIT's risk adjusted performance, information ratio, and the relationship between the information ratio and kurtosis to determine if the stock is priced accurately at its current price of $21.11 per share. Given Plymouth Industrial's information ratio of -0.03, we recommend examining the company's recent market performance to ensure its future sustainability.
Our Takeaway on Plymouth Industrial Investment
When is the right time to buy or sell Plymouth Industrial REIT? Buying stocks such as Plymouth Industrial isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
While some investors may not share our view we believe that the current risk-reward utility 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 Plymouth Industrial.
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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 Aina Ster do not own shares of Plymouth Industrial REIT. Please refer to our
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