Vince Holding Corp, an apparel manufacturing company, has shown a significant risk-adjusted performance of
0.1215 and a market risk-adjusted performance of
0.551, indicating a potential for higher returns. However, investors should be cautious as the company reported a free cash flow loss of
22M and a quarterly revenue growth decline of 15%. Despite a low PE ratio of 2.5066, the negative cash flow and declining revenue growth could be concerning for potential investors.
Main Ideas
By examining the fundamental indicators between Vince Holding Corp and Dixie, we can compare the impact of market volatility on the prices of both companies. This analysis can help determine if the combination of these companies in a single portfolio can help diversify away market risk. Pair trading strategies can also be employed, such as pairing a long position in Dixie with a short position in Vince Holding Corp. For more information, please refer to our
pair correlation module.
Now, let's analyze the assets. The asset utilization indicator is a measure of the revenue generated for every dollar of assets a company currently holds. Vince Holding Corp has an asset utilization ratio of 117.83 percent, meaning the company generates $1.18 for each dollar of assets. An increasing asset utilization ratio suggests that Vince Holding Corp is becoming more efficient in using its assets for 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 Vince or Ermenegildo is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Vince Holding's Liquidity
Vince Holding
financial leverage refers to using borrowed capital as a funding source to finance Vince Holding Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Vince Holding 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 Vince Holding'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 Vince Holding'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 Vince Holding's total debt and its cash.
Correlation Between Vince and Ermenegildo Zegna
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 Vince Holding together with similar or unrelated positions with a negative correlation. For example, you can also add Ermenegildo Zegna to your portfolio. If Ermenegildo Zegna is not perfectly correlated to Vince Holding 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 Vince Holding, 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 Vince Holding and Ermenegildo Zegna in your portfolio? Please note if you are using this as a pair-trade strategy between Vince Holding and Ermenegildo Zegna, 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 VNCE and ZGN for more information.
Is Vince Holding valued correctly by the market?
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 product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Vince Holding revenue. Based on the latest financial disclosure, Vince Holding Corp reported 357.44
M of revenue. This is 94.99% lower than that of the Textiles, Apparel & Luxury Goods sector and 89.21% lower than that of the
Consumer Discretionary industry. The revenue for all United States stocks is 96.21% higher than that of Vince Holding.
As for Dixie we see revenue of 303.57
M, which is 90.84% lower than that of the Consumer Discretionary
| VNCE | 357.44 Million | 9.0 |
| Sector | 3.31 Billion | 83.37 |
| DXYN | 303.57 Million | 7.64 |
"Never put all your eggs in one basket" is a timeless piece of advice that rings true when comparing Vince Holding Corp (VNCE) and The Dixie Group. As an investor, diversification is key, and understanding the
financial health of these companies can guide your
decision-making process. Vince Holding Corp, a player in the Apparel Manufacturing industry, has a market capitalization of $47.64M and a book value of 4.11 per share. However, it's worth noting that the company has been operating at a loss with an EBITDA of -$10.6M and a quarterly revenue growth of -0.15. The company's current ratio stands at 1.31X, indicating a relatively balanced
financial position in terms of short-term liabilities and assets. However, the company's high probability of bankruptcy at 47.45% and a negative total risk alpha of -0.86 suggest potential risks. On the other hand, the company's PE ratio of 2.5066 and price to sales ratio of 0.15X indicate a potentially undervalued stock, offering a potential upside of 20.54. Therefore, while Vince Holding Corp presents some risks, it also offers potential rewards for risk-tolerant investors. .
Will Vince Holding continue to go ballistic?
Vince Holding Corp's stock has experienced an impressive upward trajectory, but the recent decrease in downside variance to 29.14 suggests a potential moderation in its volatility. This could signal a more stable phase for the stock, yet investors should maintain their vigilance. Although the reduced downside risk may be a positive sign, it's essential to take into account other market factors and the company's
fundamentals before determining whether Vince Holding Corp will sustain its meteoric rise. Vince Holding Corp is exhibiting above-average volatility over the chosen time horizon. Investors should carefully analyze Vince Holding Corp on its own merits to ensure that their intended
market timing strategies align with expectations about Vince Holding's volatility. Understanding different
market volatility trends can often assist investors in timing the market effectively. Proper utilization of volatility indicators allows traders to gauge Vince Holding's stock risk against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly impact
Vince Holding's stock price, adding stress for investors as they watch the value of their shares decline.
This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, Vince Holding Corp (VNCE) presents a compelling investment opportunity. With an analyst overall consensus rating of 'Buy' and two strong buy recommendations, the stock shows potential for a rebound. The highest estimated target price by analysts stands at a staggering
20.2M, indicating a significant upside potential. However, investors should also consider the possible downside price of 0.0346. The company's fiscal year ends in February, providing a timeline for potential investors to watch for performance indicators. The valuation real value of 1.72 and market value of
3.46 further underscore the potential for growth. Therefore, despite the risks, Vince Holding Corp could offer substantial returns for investors willing to take on the risk. .
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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 Vince Holding Corp. Please refer to our
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