XCEL Brands Stock Story

XELB
 Stock
  

USD 1.19  0.01  0.85%   

As many rational traders are trying to avoid consumer cyclical space, it makes sense to go over XCEL Brands a little further and understand how it stands against VF Corp and other similar entities. We are going to analyze some of the competitive aspects of both XCEL Brands and VF Corp.
Published over a month ago
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Should you exit your VF Corp (NYSE:VFC) and XCEL Brands (NASDAQ:XELB) positions after a build up?
By analyzing existing essential indicators between XCEL Brands and VF Corp, 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 VF Corp with a short position in XCEL Brands. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. XCEL Brands has an asset utilization ratio of 24.87 percent. This suggests that the company is making $0.25 for each dollar of assets. An increasing asset utilization means that XCEL Brands is more efficient with each dollar of assets it utilizes for everyday operations.

Watch out for price decline

Please consider monitoring XCEL Brands on a daily basis if you are holding a position in it. XCEL Brands is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as XCEL Brands stock to be traded above the $1 level to remain listed. If XCEL Brands stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is XCEL Brands's Liquidity

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

How does XCEL Brands utilize its cash?

To perform a cash flow analysis of XCEL Brands, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash XCEL Brands is receiving and how much cash it distributes out in a given period. The XCEL Brands cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

XCEL Brands exotic insider transaction detected

Legal trades by XCEL Brands 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:
XCEL Brands insider trading alert for general transaction of common stock by Mark DiSanto, the corporate stakeholder, on 12th of December 2021. This event was filed by Xcel Brands Inc with SEC on 2020-06-02. 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.

An Additional Perspective On XCEL Brands

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 now go over XCEL Brands revenue. Based on the latest financial disclosure, XCEL Brands reported 37.93 M of revenue. This is 99.47% lower than that of the Consumer Cyclical sector and 98.86% lower than that of the Apparel Manufacturing industry. The revenue for all United States stocks is 99.6% higher than that of XCEL Brands. As for VF Corp we see revenue of 11.6 B, which is 250.17% higher than that of the Apparel Manufacturing

Sector
3.3 B
VFC
11.6 B
XELB37.93 Million0.25
Sector3.31 Billion22.16
VFC11.6 Billion77.59

Time to drop XCEL Brands is now

Current kurtosis is at 2.01. XCEL Brands exhibits very low volatility with skewness of 1.08 and kurtosis of 2.01. However, we advise investors to further study XCEL Brands technical indicators to make sure all market info is available and is reliable. XCEL Brands is a potential penny stock. Although XCEL Brands may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in XCEL Brands. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on XCEL Brands instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Whereas some firms in the apparel manufacturing industry are either recovering or due for a correction, XCEL Brands may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the current economy, it is better to hold off any trading of XCEL Brands 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 XCEL Brands.

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 XCEL Brands. Please refer to our Terms of Use for any information regarding our disclosure principles.

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