Are Stryve (USA Stocks:SNAX) investors shifting to JJSF (USA Stocks:JJSF)?

Analyzing basic indicators between Stryve Foods and JJSF allows us to compare the impact of market volatility on both companies' prices. It also helps determine if combining them in a portfolio can diversify market risk. Pair trading strategies can be utilized, matching a long position in JJSF with a short position in Stryve Foods. For more information, check our pair correlation module. Now, let's examine the assets. The asset utilization indicator shows the revenue earned per dollar of a company's reported assets. Stryve Foods has an asset utilization ratio of 54.14 percent, indicating that the company earns $0.54 for each dollar of assets. An increasing asset utilization suggests that Stryve Foods is becoming more efficient in using its assets for daily operations.

Main Points

Despite a 200-day moving average of $2.17, Stryve Foods (SNAX) has been experiencing a significant decline in investor interest, as evidenced by the 40.03K shares shorted. The company's financial health raises concerns, with a book value of -0.27 and a high probability of bankruptcy at 95.95%. In contrast, investors seem to be shifting their focus to more stable options like J&J Snack Foods (JJSF).
Published over three months ago
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Reviewed by Vlad Skutelnik

The proof is in the pudding, and for Stryve Foods (SNAX), the taste seems to be turning sour for investors. Despite a healthy current ratio of 3.23X and a modest debt to equity ratio of 0.33%, the company's financial health is marred by a net asset of $32.71M and a negative book value of $0.27. The company's net income from continuing operations shows a loss of $18.2M, and its operating income also reflects a loss of $15.4M. The company's quarterly revenue growth has dipped by 0.01, and its 50-day moving average of 1.6067 is significantly lower than its 200-day moving average of 2.1669. With a short percent of 0.0254 and 40K shares short, it appears that investors are losing interest in SNAX and turning their attention to more appetizing options like J&J Snack Foods (JJSF). Despite these challenges, the company's target price remains at $4, suggesting some optimism for future performance. However, with a return on asset of -0.25, the company will need to significantly improve its financial performance to regain investor confidence. Stryve Foods and J J's stocks are on the rise, with J J recovering swiftly as its share price surged by 0.07% today, compared to Stryve Foods' 0.49%. While the food products sector is generating excitement, it's crucial to evaluate the strength of Stryve Foods and J J's fundamentals. We will delve into the competitive aspects of both companies.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Stryve Foods. 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 Stryve Foods, 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.

Watch out for price decline

Please consider monitoring Stryve Foods on a daily basis if you are holding a position in it. Stryve Foods is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Stryve Foods stock to be traded above the $1 level to remain listed. If Stryve Foods stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Stryve Foods's Liquidity

Stryve Foods financial leverage refers to using borrowed capital as a funding source to finance Stryve Foods ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Stryve Foods 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 Stryve Foods' 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 Stryve Foods' 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 Stryve Foods's total debt and its cash.

Stryve Foods Gross Profit

Stryve Foods Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Stryve Foods 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 Stryve Foods Gross Profit growth over the last 10 years. Please check Stryve Foods' gross profit and other fundamental indicators for more details.

Breaking down Stryve Foods Indicators

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 take a look at Stryve Foods revenue. Based on the latest financial disclosure, Stryve Foods reported 17.71 M of revenue. This is 99.88% lower than that of the Food Products sector and 99.79% lower than that of the Consumer Staples industry.
The revenue for all United States stocks is 99.81% higher than that of Stryve Foods. As for J J we see revenue of 1.56 B, which is 81.26% lower than that of the Consumer Staples
Sector
8.3 B
SNAX17.71 Million0.18
Sector8.32 Billion84.07
JJSF1.56 Billion15.76
"Buy when others are fearful," goes the old investment adage. However, in the case of Stryve Foods (SNAX), investors may have good reason to be wary. The company's net income shows a loss of $19M, and its operating income is also in the red at $15.4M. With a high probability of bankruptcy at 95.95%, the company's financial health is in question. While Stryve Foods' current ratio of 3.23X indicates a strong ability to meet short-term obligations, the company's negative book value of -0.27 and total debt of $24.78M paint a concerning picture. In contrast, J&J Snack Foods (JJSF) may offer a more stable investment opportunity in the packaged foods industry..

Will Stryve continue to rise?

Stryve Foods has shown promising market signs, with a significant decrease in downside deviation to 5.3, potentially indicating reduced volatility. This is often a positive sign for investors seeking stability. However, it's essential to view this in the context of the company's overall performance and market trends. Reduced volatility may suggest a stable growth environment, but it doesn't guarantee a continued rise. Investors should monitor other key indicators and company news for informed decision-making. Stryve Foods has an above-average semi-deviation for the current time horizon.
Understanding market volatility trends can help investors time the market. Proper use of volatility indicators allows traders to measure Stryve Foods' stock risk against market volatility during bullish and bearish trends. The increased volatility of bear markets can impact Stryve Foods' stock price and stress investors as share values drop, often prompting portfolio rebalancing with different financial instruments.Based on the current valuation hype value of 2.03 and a robust analyst overall consensus of a 'Strong Buy', Stryve Foods Stock (SNAX) holds a promising investment outlook. The potential upside price of 7.74 is significant, suggesting substantial growth potential. With a strong buy recommendation from analysts and a conservative target price estimated value of 19, Stryve Foods demonstrates potential for steady growth. However, investors should consider the possible downside price of 0.0207 and monitor the fiscal year-end reports closely. In conclusion, despite the slow rise, Stryve Foods presents a viable investment opportunity for long-term investors..

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