Analyzing key indicators for Xcel Brands and Vince allows for a comparison of how market volatility impacts both companies' prices. This can help determine if combining them in a portfolio could diversify market risk. Pair trading strategies can also be used, such as matching a long position in Vince with a short position in Xcel Brands. For more information, refer to our pair correlation module.
Let's examine the assets. The asset utilization indicator shows the revenue generated for every dollar of assets a company reports. Xcel Brands has an asset utilization ratio of 23.72 percent, indicating that the company earns $0.24 for each dollar of assets. An increasing asset utilization suggests that Xcel Brands is becoming more efficient in using its assets for daily operations.
Main Takeaways
When comparing the investment potential of Xcel Brands and Vince Holding Corp in the US stock market, it's important to note the financial health of Xcel Brands. Despite its market capitalization of
17.7M, the company has been struggling with a negative profit margin of
1.19% and a negative operating margin of
2.24%. The company's EPS estimate for the current year is a loss of
0.3, which, coupled with a free cash flow loss of
6.6M, indicates significant financial difficulties. The Jensen Alpha of
-0.38 and Treynor Ratio of
-1.14 further illustrate the company's underperformance when adjusted for risk.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Xcel or Talon is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Xcel Brands's Liquidity
Xcel Brands
financial leverage refers to using borrowed capital as a funding source to finance Xcel Brands ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Xcel Brands 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 Xcel Brands' 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 Xcel Brands' 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 Xcel Brands's total debt and its cash.
Correlation Between Xcel and Talon International
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Xcel Brands together with similar or unrelated positions with a negative correlation. For example, you can also add Talon International to your portfolio. If Talon International is not perfectly correlated to Xcel Brands it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Xcel Brands, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Xcel Brands and Talon International in your portfolio? Please note if you are using this as a pair-trade strategy between Xcel Brands and Talon International, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between XELB and TALN for more information.
An Additional Perspective On Xcel Brands
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 Xcel Brands revenue. Based on the latest financial disclosure, Xcel Brands reported 17.75
M of revenue.
This is 99.75% lower than that of the Specialty Retail sector and 99.46% lower than that of the
Consumer Discretionary industry. The revenue for all United States stocks is 99.81% higher than that of Xcel Brands. As for Vince Holding we see revenue of 292.89
M, which is 91.16% lower than that of the Consumer Discretionary
| XELB | 17.75 Million | 0.49 |
| Sector | 3.31 Billion | 91.43 |
| VNCE | 292.89 Million | 8.08 |
"Never put all your eggs in one basket," is a common saying in the investment world, and it rings true when comparing the investment potential of Xcel Brands and Vince Holding Corp in the US Stock Market. Xcel Brands, a player in the Apparel Manufacturing industry, has a market capitalization of $17.74M and a current ratio of 2.38X, indicating a strong ability to meet short-term obligations. However, the company has been struggling with a negative EBITDA of $12.4M and a quarterly revenue growth of -0.44, which raises concerns about its profitability. On the other hand, Xcel Brands has a high institutional ownership of 26.94%, suggesting that it is favored by large financial institutions. Despite these challenges, the company's target price stands at $3, which is significantly higher than its current typical day price of $0.77, indicating potential for future growth..
Will Xcel Brands growth be reliable after the rise?
Xcel Brands' stock potential upside has been adjusted to a modest 6.49, indicating a conservative growth outlook. Despite a recent rise, the sustainability of this growth is uncertain. Investors are advised to monitor the company's performance and market conditions closely before investing. The reliability of Xcel Brands' growth following its recent rise is yet to be confirmed, making it crucial to review upcoming financial reports and strategic initiatives. Exhibiting low volatility, Xcel Brands is a potential penny stock. While it may be a good investment, penny stocks are often speculative and subject to artificial price hype. Investors should be aware of signals such as unreported promotions, sudden news releases, or volume upswings. It's also advisable to research the backgrounds of company officers before investing in high volatility instruments or penny stocks. Although profits can be made from these stocks with perfect timing, artificially hyped penny stocks usually cannot maintain their increased share price for long. Shareholder value can only be increased through solid fundamentals and legitimate performance.
Our Conclusion on Xcel Brands
Whereas other companies in the apparel manufacturing industry are either recovering or due for a correction, Xcel may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Xcel valuation and our trade advice on Xcel Brands is due to the recent market swings and your selection of investing horizon. 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 Xcel Brands.
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with 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 Nico Santiago do not own shares of Xcel Brands. Please refer to our
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