Davidstea Stock Performance

DTEA -  USA Stock  

USD 3.90  0.36  8.45%

Davidstea has performance score of 2 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 2.21, 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 0.18% will be sustainable into the future. Davidstea right now shows a risk of 5.01%. 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.

Davidstea Stock Performance 

 
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Davidstea Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Davidstea are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Davidstea may actually be approaching a critical reversion point that can send shares even higher in December 2021. ...more

Davidstea Price Channel

Quick Ratio0.96
Fifty Two Week Low1.3350
Fifty Two Week High7.4500

Davidstea Relative Risk vs. Return Landscape

If you would invest  377.00  in Davidstea on August 31, 2021 and sell it today you would earn a total of  13.00  from holding Davidstea or generate 3.45% return on investment over 90 days. Davidstea is currently generating 0.177% in daily expected returns and assumes 5.0077% risk (volatility on return distribution) over the 90 days horizon. In different words, 43% of stocks are less volatile than Davidstea, and 97% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
 Daily Expected Return (%) 
      Risk (%) 
Given the investment horizon of 90 days Davidstea is expected to generate 6.63 times more return on investment than the market. However, the company is 6.63 times more volatile than its market benchmark. It trades about 0.04 of its potential returns per unit of risk. The DOW is currently generating roughly -0.02 per unit of risk.

Davidstea Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Davidstea's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Davidstea, and traders can use it to determine the average amount a Davidstea's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.0353

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Estimated Market Risk
 5.01
  actual daily
 
 43 %
of total potential
 
4343
Expected Return
 0.18
  actual daily
 
 3 %
of total potential
 
33
Risk-Adjusted Return
 0.04
  actual daily
 
 2 %
of total potential
 
22
Based on monthly moving average Davidstea is performing at about 2% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Davidstea by adding it to a well-diversified portfolio.

About Davidstea Performance

To evaluate Davidstea Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Davidstea generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Davidstea Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Davidstea stock market performance in a much more refined way. At Macroaxis, we take it even further. The Macroaxis performance score is an integer between 0 and 100 that represents Davidstea's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2021
Return on Average Assets(0.66) (0.72) 
Return on Average Equity 2.84  3.06 
Return on Invested Capital 16.47  17.77 
Return on Sales(0.43) (0.20) 
DAVIDsTEA Inc. operates as a retailer of specialty tea in Canada and the United States. DAVIDsTEA Inc. was incorporated in 2008 and is headquartered in Mount Royal, Canada. Davidstea operates under Packaged Foods classification in the United States and is traded on NASDAQ Exchange. It employs 252 people.

Things to note about Davidstea

Checking the ongoing alerts about Davidstea for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Davidstea help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Davidstea Alerts

Equity Alerts and Improvement Suggestions

Davidstea has very high historical volatility over the last 90 days
Davidstea currently holds about 12.05 M in cash with (21.16 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.46.
Roughly 46.0% of the company shares are held by company insiders
Latest headline from www.marketscreener.com: DAVIDsTEA Launches Steeping Together A Podcast for All Tea Fans Out There - marketscreener.com
Continue to Investing Opportunities. Note that the Davidstea information on this page should be used as a complementary analysis to other Davidstea's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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Is Davidstea's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Davidstea. If investors know Davidstea will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Davidstea listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Davidstea is measured differently than its book value, which is the value of Davidstea that is recorded on the company's balance sheet. Investors also form their own opinion of Davidstea's value that differs from its market value or its book value, called intrinsic value, which is Davidstea's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Davidstea's market value can be influenced by many factors that don't directly affect Davidstea's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Davidstea's value and its price as these two are different measures arrived at by different means. Investors typically determine Davidstea value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Davidstea's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.