Considering an investment in Staffing 360 Solutions (NASDAQ: STAF) requires a careful look at its financial health and market position. The company has reported a significant change in cash of
734K loss, which could impact its liquidity and operational flexibility. Additionally, with a return on equity of negative 212.44, potential investors should weigh the risks associated with its current financial performance against any strategic partnerships, such as with Mastech Holdings, that might offer future growth opportunities.
Main Points
To compare the impact of market fluctuations on Staffing 360 Solutions and Mastech, you can examine their basic indicators. This analysis can help determine if combining them in a portfolio might reduce market risk. Additionally, you might consider a pair trading strategy by taking a long position in Mastech and a short position in Staffing 360. For more details, check out our [pair correlation module](#) on these companies.
Now, let's look at asset utilization. This metric shows how much revenue a company generates for each dollar of assets. Staffing 360 Solutions boasts an asset utilization ratio of 269.88%, meaning it earns $2.70 for every dollar of assets. A rising asset utilization ratio indicates that Staffing 360 is using its assets more efficiently in daily operations.
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 Staffing or Robert is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Staffing 360's Liquidity
Staffing 360
financial leverage refers to using borrowed capital as a funding source to finance Staffing 360 Solutions ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Staffing 360 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 Staffing 360'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 Staffing 360'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 Staffing 360's total debt and its cash.
Correlation Between Staffing and Robert Half 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 Staffing 360 together with similar or unrelated positions with a negative correlation. For example, you can also add Robert Half to your portfolio. If Robert Half is not perfectly correlated to Staffing 360 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 Staffing 360, 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 Staffing 360 and Robert Half in your portfolio? Please note if you are using this as a pair-trade strategy between Staffing 360 and Robert Half, 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 STAF and RHI for more information.
Breaking down Staffing 360 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 Staffing 360 revenue. Based on the latest financial disclosure, Staffing 360 Solutions reported 190.88
M of revenue.
This is 94.54% 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 97.98% higher than that of Staffing 360. As for Mastech Holdings we see revenue of 201.1
M, which is much higher than that of the Industrials
| Staffing | 190.88 Million |
| Sector | 0.0 |
| Mastech | 201.1 Million |
In finance, it's often said that "two heads are better than one," but can this hold true for Staffing 360 Solutions and Mastech Holdings? Staffing 360 Solutions, trading under NASDAQ: STAF, faces a challenging financial landscape with an operating margin of -0.01 and a quarterly earnings growth of -0.94. Despite these hurdles, the company boasts a market capitalization of $2.48 million and a current valuation of $25.4 million, indicating potential for strategic maneuvers. A partnership with Mastech Holdings could leverage complementary strengths, possibly improving Staffing 360's probability of profitability. However, with a probability of bankruptcy at 76.04%, any collaboration would need to be meticulously structured to mitigate risks and capitalize on mutual benefits..
Over 3 percent rise for Staffing 360. What does it mean for stockholders?
Staffing 360 Solutions has recently seen a price increase of over 3%, which might attract investors seeking stocks with upward momentum. However, the stock's total risk alpha is at -2.51, indicating it hasn't been performing well compared to its risk-adjusted benchmark. This negative alpha suggests that despite the recent price rise, the returns may not justify the associated risks. Investors should be cautious and assess whether the stock's risk aligns with their investment goals.
Additionally, Staffing 360 Solutions exhibits higher-than-average volatility, which can significantly affect its stock price, especially in bear markets. This volatility can lead to stress for investors, prompting them to reconsider their portfolios and possibly diversify as prices fluctuate.As we approach the end of the fiscal year in December, investors considering Staffing 360 Solutions should weigh the potential risks and rewards. With an analyst consensus rating of "Strong Buy" and a possible upside price of
26.96, there appears to be significant room for growth. However, it's crucial to remain cautious, as the possible downside price is as low as
0.0273. This stark contrast highlights the volatility and uncertainty surrounding the stock. For those willing to embrace the risk, Staffing 360 Solutions might offer an intriguing opportunity, but it's essential to stay informed and agile in this dynamic market environment..
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of Staffing 360 Solutions. Please refer to our
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