National Stock Story

EYE -  USA Stock  

USD 47.99  0.79  1.62%

It looks as if National Vision will continue to recover much faster as its share price surged up 6.92% today. This firm current daily volatility is 1.93 percent, with a beta of 1.25 and an alpha of 0.34 over DOW. While some baby boomers are getting worried about stable market, it is reasonable to digest National Vision Holdings. We will analyze why National Vision investors may still consider a stake in the business.
Published over a month ago
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Chances of National Vision to dip after the volatility ascents
National Vision Holdings has roughly 408.3 M in cash with 353.37 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.99.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. National Vision has an asset utilization ratio of 81.74 percent. This indicates that the company is making $0.82 for each dollar of assets. An increasing asset utilization means that National Vision Holdings is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in National Vision, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding National Vision along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of National Vision'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 National Vision 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 National Vision. Your research has to be compared to or analyzed against National Vision's peers to derive any actionable benefits. When done correctly, National Vision'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 National Vision Holdings.

How important is National Vision's Liquidity

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

How National utilizes its cash?

To perform a cash flow analysis of National Vision, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash National Vision is receiving and how much cash it distributes out in a given period. The National Vision cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
National Vision Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 234.98 Million

National Vision Correlation with Peers

Investors in National can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in National Vision Holdings. Diversification will allow for the same portfolio return with reduced risk. The correlation table of National Vision and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities National is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of National for more details

Details

National Vision appears to be very steady, given 3 months investment horizon. National Vision Holdings has Sharpe Ratio of 0.2, which conveys that the firm had 0.2% of return per unit of risk over the last 3 months. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for National Vision, which you can use to evaluate the future volatility of the firm. Please exercise National Vision's Mean Deviation of 1.47, risk adjusted performance of 0.1531, and Downside Deviation of 1.72 to check out if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Can National Vision build up on the latest surge?

The mean deviation is down to 1.47 as of today. National Vision Holdings has relatively low volatility with skewness of 0.79 and kurtosis of 1.77. However, we advise all investors to independently investigate National Vision Holdings to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure National Vision'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 National Vision'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 National Vision

Although some firms under the specialty retail industry are still a bit expensive, National Vision may offer a potential longer-term growth to shareholders. Taking everything into account, as of the 16th of October 2021, we believe that at this point, National Vision is very steady with low probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be fairly valued. Our final 90 days advice on the firm is Strong Buy.

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 National Vision Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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