The company classifies itself under
Hotels, Restaurants & Leisure sector and is part of
Consumer Discretionary industry.
Investing in Sodexo PK, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Sodexo PK along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Sodexo PK. Your research has to be compared to or analyzed against Sodexo PK's peers to derive any actionable benefits. When done correctly, Sodexo PK's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Sodexo PK.
How important is Sodexo PK's Liquidity
Sodexo PK
financial leverage refers to using borrowed capital as a funding source to finance Sodexo PK ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Sodexo PK 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 Sodexo PK'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 Sodexo PK'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 Sodexo PK's total debt and its cash.
Sodexo PK Correlation with Peers
Investors in Sodexo can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Sodexo PK. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Sodexo PK and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Sodexo is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Sodexo for more details
Breaking down Sodexo PK Indicators
Sodexo PK appears to be not too volatile, given 3 months investment horizon.
Sodexo PK owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.22, which indicates the firm had 0.22% of return per unit of risk over the last 3 months. Our standpoint towards measuring the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-one
technical indicators for Sodexo PK, which you can use to evaluate the future volatility of the company. Please review Sodexo PK's Semi Deviation of 1.35,
risk adjusted performance of 0.2769, and Coefficient Of Variation of 448.04 to confirm if our risk estimates are consistent with your expectations.
Some Sodexo technical indicators suggest relapse
Treynor ratio is down to 2.98. It may suggest a possible volatility slide. Sodexo PK has relatively low volatility with skewness of 0.17 and kurtosis of 1.33. However, we advise all investors to independently investigate Sodexo PK to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sodexo PK's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sodexo PK's pink sheet price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Conclusion on Sodexo PK
While some firms under the specialty business services industry are still a bit expensive, Sodexo PK may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Sodexo valuation and our trade advice on Sodexo PK 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 Sodexo PK.
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Vlad 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 Sodexo PK. Please refer to our
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