Investing in Resources Connection, a company in the Consulting Services industry, presents a strategic opportunity for investors looking for a solid
financial performance and a healthy balance sheet. The company's current ratio of
2.86X indicates a strong liquidity position, suggesting that it can easily meet its short-term obligations. The profit margin of
0.053 further underscores the company's ability to convert sales into profits, which is a positive sign for potential investors. The book value of
$12.43 per share, coupled with a price to book ratio of
1.14X, suggests that the stock is reasonably valued, providing an attractive entry point for investors.
Main Points
By examining the existing technical and fundamental indicators between Resources Connection and Doubledown, we can assess the impact of market volatilities on the prices of both companies. This analysis can also help determine if combining these companies in a single portfolio can help diversify away market risk. Pair trading strategies can also be utilized, such as matching a long position in Doubledown with a short position in Resources Connection. For more information, please refer to our
pair correlation module.
Now, let's delve into the assets. The asset utilization indicator measures the revenue generated for every dollar of assets a company currently holds. Resources Connection has an asset utilization ratio of 145.8 percent, indicating that the company generates $1.46 for each dollar of assets. An increasing asset utilization ratio suggests that Resources Connection is becoming more efficient in using each dollar of assets for its daily operations.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Resources Connection. 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 Resources Connection, 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 Resources Connection's Liquidity
Resources Connection
financial leverage refers to using borrowed capital as a funding source to finance Resources Connection ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Resources Connection 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 Resources Connection'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 Resources Connection'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 Resources Connection's total debt and its cash.
Resources Connection Gross Profit
Resources Connection Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Resources Connection 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 Resources Connection Gross Profit growth over the last 10 years. Please check Resources Connection's
gross profit and other
fundamental indicators for more details.
What is driving Resources Connection 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 Resources Connection revenue. Based on the latest financial disclosure, Resources Connection reported 775.64
M of revenue. This is 77.83% lower than that of the Professional Services sector and significantly higher than that of the
Industrials industry.
The revenue for all United States stocks is 91.78% higher than that of Resources Connection. As for Doubledown InteractiveCo we see revenue of 321.03
M, which is much higher than that of the Industrials
| Resources | 775.64 Million |
| Sector | 0.0 |
| Doubledown | 321.03 Million |
"In investing, the only certainty is uncertainty." This saying rings true when analyzing Resources Connection, a player in the Consulting Services industry. With a market capitalization of $477.5M and a healthy current ratio of 2.86X, the company exhibits financial stability. However, the stock's risk-adjusted performance of -0.02 and a Treynor ratio of -0.08 indicate potential volatility. Despite these risks, the company's net income of $54.36M and operating income of $72.8M suggest a robust
financial performance. Moreover, with 87.60% of shares owned by institutions, the stock garners significant interest from institutional investors. Therefore, while investing in Resources Connection might come with some risks, its solid financial performance and institutional backing make it a strategic investment decision. .
Resources Connection is epected to finish above $13.89 in February
Despite the recent uptick in the Treynor Ratio to -0.08, which suggests a potential increase in systematic risk, the stock of Resources Connection is expected to show resilience. Market indicators predict a possible dip in price, but the overall outlook remains positive. Analysts forecast that the stock will recover and finish above $13.89 by the end of February. This projection is based on the company's robust
financial health and strategic initiatives, which should help offset any short-term market volatility. Resources Connection exhibits very low volatility, with a skewness of -0.59 and a kurtosis of 6.84. However, we advise investors to further study Resources Connection's technical indicators to ensure that all market information is available and reliable. Understanding different
market volatility trends often helps investors to time the market. Proper use of volatility indicators enables traders to measure the risk of Resources Connection's stock against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact the price of Resources Connection's stock, adding stress to investors as they watch the value of their shares plummet. This usually compels investors to rebalance their portfolios by purchasing different stocks as prices fall.
The Current Takeaway on Resources Connection Investment
When is the right time to buy or sell Resources Connection? Buying stocks such as Resources Connection 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.
To conclude, as of the 2nd of January 2024, we believe that Resources Connection is currently
fairly valued with
very small probability of financial unrest in the next two years. Our overall 90 days recommendation on the enterprise is
Cautious Hold.
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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 Resources Connection. Please refer to our
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