Diversey Stock Story


USD 7.23  0.78  9.74%   

Today we may see the proof that Bright Horizons would recover much slower from the new pull down as its shares went up 1.12% to Diversey Holdings's 15.3333%. As many rational traders are trying to avoid consumer cyclical space, it makes sense to break down Diversey Holdings a little further and understand how it stands against Bright Horizons and other similar entities. We are going to inspect some of the competitive aspects of both Diversey and Bright.
Published over three months ago
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Will Diversey Holdings (NASDAQ:DSEY) shadow Bright Horizons price surge?
By analyzing existing technical and fundamental indicators between Diversey Holdings and Bright, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Bright with a short position in Diversey Holdings. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
One of the ways to look at asset utilization of Diversey is to check how much profit was generated for every dollar of assets it reports. Diversey Holdings utilizes its assets almost 2.08 percent, getting $0.0208 for each dollar of assets held by the firm. A positive asset utilization denotes the company is slightly more effective with each dollar of assets it shows. Put another way, asset utilization of Diversey Holdings shows how effective it operates for each dollar spent on its assets.

How important is Diversey Holdings's Liquidity

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

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Diversey Holdings, but it might be worth checking our own buy vs. sell analysis

Acquisition by Long Tracy of 18027 shares of Diversey Holdings subject to Rule 16b-3

Legal trades by Diversey Holdings insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Diversey insider trading alert for grant of employee stock option (right to buy) by Long Tracy, President North America, on 23rd of June 2022. This event was filed by Diversey Holdings Ltd with SEC on 2022-06-23. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Diversey Holdings Investor Appetite?

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 take a closer look at Diversey Holdings revenue. Based on the latest financial disclosure, Diversey Holdings reported 2.61 B of revenue. This is 63.39% lower than that of the Consumer Cyclical sector and 55.23% higher than that of the Personal Services industry. The revenue for all United States stocks is 72.34% higher than that of the firm. As for Bright Horizons we see revenue of 1.67 B, which is about the same for the Personal Services average (which is currently at 1.68 B)

Diversey2.61 Billion
Sector1.68 Billion
Bright1.67 Billion
2.6 B
1.7 B
1.7 B

Will Diversey Holdings growth be viable after the rise?

The value at risk is down to -6.65 as of today. Diversey Holdings exhibits very low volatility with skewness of -0.92 and kurtosis of 1.15. However, we advise investors to further study Diversey Holdings 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 Diversey Holdings' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Diversey Holdings' 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.

Diversey Holdings Implied Volatility

Diversey Holdings' implied volatility exposes the market's sentiment of Diversey Holdings stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Diversey Holdings' 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 Diversey Holdings stock will not fluctuate a lot when Diversey Holdings' options are near their expiration.

The Current Takeaway on Diversey Holdings Investment

While many other companies in the personal services industry are either recovering or due for a correction, Diversey Holdings may not be performing as strong as the other in terms of long-term growth potentials. To summarize, as of the 9th of March 2022, we believe that Diversey Holdings is currently undervalued with average chance of distress in the next two years. Our latest 90 days advice on the company is Strong Hold.

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 Vlad Skutelnik do not own shares of Diversey Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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