Circor Stock Story

CIR
 Stock
  

USD 17.24  0.15  0.86%   

Circor International is scheduled to announce its earnings today. Circor International PPandE Turnover is relatively stable at the moment as compared to the past year. Circor International reported last year PPandE Turnover of 5.20. As of 07/04/2022, Cash and Equivalents Turnover is likely to grow to 12.36, while Average Assets are likely to drop slightly above 1.3 B. As many investors are getting excited about industrials space, it is fair to sum up Circor International as an investment option.
Published over a month ago
View all stories for Circor International | View All Stories

Will Circor International (NYSE:CIR) be in financial trouble before August?

The entity has 513.69 M in debt with debt to equity (D/E) ratio of 2.78, meaning that Circor International heavily relies on borrowing funds for operations.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Circor International has an asset utilization ratio of 114.96 percent. This connotes that the company is making $1.15 for each dollar of assets. An increasing asset utilization means that Circor International is more efficient with each dollar of assets it utilizes for everyday operations.
Circor International financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Circor International, including all of Circor International's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Circor International assets, the company is considered highly leveraged. Understanding the composition and structure of overall Circor International debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Circor Total Liabilities

Circor International liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Circor International has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Circor International balance sheet include debt obligations and money owed to different Circor International vendors, workers, and loan providers. Below is the chart of Circor short long-term liabilities accounts currently reported on its balance sheet.
You can use Circor International financial leverage analysis tool to get a better grip on understanding its financial position

How important is Circor International's Liquidity

Circor International financial leverage refers to using borrowed capital as a funding source to finance Circor International ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Circor International 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. Please check the breakdown between Circor International's total debt and its cash.

Breaking down the case for Circor International

The big decline in price over the last few months for Circor International could raise concerns from retail investors as the firm is trading at a share price of 16.14 on 92,100 in volume. The company executives failed to add value to investors and position the firm supply of money to exploit market volatility in June. However, diversifying your holdings with Circor International or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.1. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Circor International partners.

Asset Breakdown

773.1 M
Assets Non Current
545.1 M
Goodwill
529.2 M
Current Assets
Total Assets1.3 Billion
Current Assets529.2 Million
Assets Non Current773.06 Million
Goodwill545.07 Million
Tax Assets719,550

Another setback for Circor International retail investors

Latest maximum drawdown is at 12.54. Circor International exhibits very low volatility with skewness of -0.02 and kurtosis of 0.3. However, we advise investors to further study Circor International technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Circor International's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Circor International's stock 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.

Circor International Implied Volatility

Circor International's implied volatility exposes the market's sentiment of Circor International stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Circor International's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Circor International stock will not fluctuate a lot when Circor International's options are near their expiration.

Our Bottom Line On Circor International

While many of the other players in the specialty industrial machinery industry are either recovering or due for a correction, Circor may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither take over new shares of Circor nor quit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Circor International.

Editorial Staff

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 Gabriel Shpitalnik do not own shares of Circor International. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com