Verso
financial leverage refers to using borrowed capital as a funding source to finance Verso ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Verso 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 Verso'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 Verso'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 Verso's total debt and its cash.
To perform a cash flow analysis of Verso, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Verso is receiving and how much cash it distributes out in a given period. The Verso cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
The latest price spike of Verso Corp may raise some interest from retail investors as it is trading at a share price of
26.60 on
146,100 in trading volume. The company directors and management may have good odds in positioning the company resources to exploit market volatility in
March. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.54. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the Verso Corp partners.
Will Verso pull back in March 2022?
The value at risk is down to -1.88 as of today.
As of the 28th of February, Verso Corp has the Risk Adjusted Performance of 0.0753,
coefficient of variation of 1533.08, and Semi Deviation of 0.7668. In relation to
fundamental indicators, the
technical analysis model makes it possible for you to check existing technical drivers of Verso Corp, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate data for nineteen
technical drivers for Verso Corp, which can be compared to its competition. Please validate
Verso Corp jensen alpha and
semi variance to decide if Verso Corp is priced more or less accurately, providing market reflects its prevalent price of 26.6 per share. Given that Verso Corp has
jensen alpha of 0.2573, we advise you to double-check Verso Corp's current market performance to make sure the company can sustain itself at a future point.
Our Final Take On Verso Corp
While many other companies within the paper & paper products industry are still a little expensive, even after the recent corrections, Verso Corp may offer a potential longer-term growth to retail investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither trade nor drop any shares of Verso Corp at this time. The Verso Corp risk-reward trade off 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 Verso Corp.
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Try AI Portfolio ArchitectVlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Verso. Please refer to our
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