Davidstea Stock Story

DTEA -  USA Stock  

USD 4.25  0.35  8.97%

The underlying aim of this short article is to go over Davidstea as an investment oportunity for November. We will analyze why recent Davidstea price moves suggest a bounce in November.
Published over a month ago
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Is Davidstea (NASDAQ:DTEA) outlook positive for November 2021?
Davidstea has performance score of 2 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 1.816, which means a somewhat significant risk relative to the market. Let's try to break down what Davidstea's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Davidstea will likely underperform. Although it is extremely important to respect Davidstea historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By reviewing Davidstea technical indicators, you can presently evaluate if the expected return of 0.17% will be sustainable into the future. Davidstea right now shows a risk of 4.28%. Please confirm Davidstea downside variance, kurtosis, and the relationship between the value at risk and expected short fall to decide if Davidstea will be following its price patterns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Davidstea. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Davidstea

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Davidstea'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 Davidstea in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Davidstea. Your research has to be compared to or analyzed against Davidstea's peers to derive any actionable benefits. When done correctly, Davidstea'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 Davidstea.

How important is Davidstea's Liquidity

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

How Davidstea utilizes its cash?

To perform a cash flow analysis of Davidstea, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Davidstea is receiving and how much cash it distributes out in a given period. The Davidstea cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Davidstea Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (11.27 Million)

What is driving Davidstea Investor Appetite?

The modest gains experienced by current holders of Davidstea could raise concerns from investors as the firm it trading at a share price of 3.58 on 332,300 in volume. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in September. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.28. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Davidstea partners.

Returns Breakdown

Return on Assets(0.72)
Return on Equity3.06
Return Capital17.77
Return on Sales(0.2)

Will Davidstea current rise continue?

Current Treynor Ratio is up to 0.03. Price may slip again. Davidstea exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Davidstea individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Davidstea future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Davidstea'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 Davidstea'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.

Our Final Perspective on Davidstea

Whereas many other companies under the packaged foods industry are still a bit expensive, Davidstea may offer a potential longer-term growth to investors. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Davidstea as the current risk-reward utility is not appealing enough. 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 Davidstea.

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 Raphi Shpitalnik do not own shares of Davidstea. Please refer to our Terms of Use for any information regarding our disclosure principles.

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