Culp Stock Story

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Raphi Shpitalnik .  Story
CULP
 Stock
  

USD 5.19  0.13  2.57%   

By Raphi Shpitalnik
Macroaxis Story
As many millenniums are trying to avoid consumer cyclical space, it makes sense to recap Culp Inc a little further and try to understand its current market patterns. As we have suggested previously, Culp is beginning its decline as insiders shift to be more bearish due to the increased sector volatility. Culp Inc barely shadows the market. The returns on investing in Culp and the market returns of the last few months appear highly unrelated. Healthy essential indicators of the firm may hint at signs of short-term price drift for insiders. Culp Inc is scheduled to announce its earnings tomorrow. The next financial report is expected on the 15th of June 2022.
Published over a month ago
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Is Culp (NYSE:CULP) moving to revert?

The company's average rating is Buy from 1 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Culp market sentiment investors' perception of the future value of Culp. Let us look at a few aspects of Culp technical analysis. About 67.0% of the company shares are held by institutions such as insurance companies. Culp Inc has price-to-book (P/B) ratio of 0.52. Some equities with similar Price to Book (P/B) outperform the market in the long run. The entity next dividend is scheduled to be issued on the 8th of April 2022. The firm had a split on the 12th of January 1994.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Culp Inc. In general, we focus on analyzing Culp stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Culp's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Culp's intrinsic value. In addition to deriving basic predictive indicators for Culp, we also check how macroeconomic factors affect Culp price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Culp's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Culp in the context of predictive analytics.
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as Culp. Your research has to be compared to or analyzed against Culp's peers to derive any actionable benefits. When done correctly, Culp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Culp Inc.

How does Culp Stands against Peers?

Analyzing Culp competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Culp across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Culp Competition Details

How does Culp utilize its cash?

To perform a cash flow analysis of Culp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Culp is receiving and how much cash it distributes out in a given period. The Culp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Culp Net Cash Flow from Operations is very stable at the moment as compared to the past year. Culp reported last year Net Cash Flow from Operations of (17.44 Million)

An Additional Perspective On Culp Inc

Culp Inc has a beta of 0.173. Let's try to break down what Culp's beta means in this case. Culp returns are very sensitive to returns on the market. As the market goes up or down, Culp is expected to follow. The beta indicator helps investors understand whether Culp moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Culp deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The entity reported the previous year's revenue of 316.96 M. Net Income was 4.3 M with profit before overhead, payroll, taxes, and interest of 49.83 M.

Another 3 percent decline for Culp

The standard deviation is down to 2.06 as of today.
As of the 12th of June 2022, Culp shows the mean deviation of 1.26, and Risk Adjusted Performance of (0.34). Culp Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down and interpolate nineteen technical drivers for Culp Inc, which can be compared to its rivals. Please confirm Culp Inc downside deviation, jensen alpha, as well as the relationship between the Jensen Alpha and downside variance to decide if Culp Inc is priced correctly, providing market reflects its regular price of 5.43 per share. Given that Culp has jensen alpha of (0.53), we suggest you to validate Culp Inc's prevailing market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Although some other firms in the textile manufacturing industry are either recovering or due for a correction, Culp may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor drop any shares of Culp at this time. The Culp Inc 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 Culp.

Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and 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 Raphi Shpitalnik do not own shares of Culp Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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