Hawaiian Holdings reports roughly 1.43
B in cash with 251.34
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 27.77, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Investing in Hawaiian Holdings, 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 Hawaiian Holdings 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, anticipate that the market will even out over time. This tendency of Hawaiian Holdings' 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 note, it is not enough to conduct a financial or market analysis of a single entity such as Hawaiian Holdings. Your research has to be compared to or analyzed against Hawaiian Holdings' peers to derive any actionable benefits. When done correctly, Hawaiian Holdings' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Hawaiian Holdings.
How important is Hawaiian Holdings's Liquidity
Hawaiian Holdings
financial leverage refers to using borrowed capital as a funding source to finance Hawaiian Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Hawaiian 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. Financial leverage can amplify the potential profits to Hawaiian Holdings' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Hawaiian Holdings' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Hawaiian Holdings's total debt and its cash.
Hawaiian Holdings Gross Profit
Hawaiian Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Hawaiian Holdings previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Hawaiian Holdings Gross Profit growth over the last 10 years. Please check Hawaiian Holdings'
gross profit and other
fundamental indicators for more details.
Hawaiian Holdings Correlation with Peers
Investors in Hawaiian can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Hawaiian Holdings. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Hawaiian Holdings and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Hawaiian 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 Hawaiian for more details
Breaking down Hawaiian Holdings Indicators
Hawaiian Holdings holds Efficiency (Sharpe) Ratio of -0.0903, which attests that the entity had -0.0903% of return per unit of risk over the last 3 months. Macroaxis standpoint towards determining the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. Hawaiian Holdings exposes twenty-seven different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to check out Hawaiian Holdings
risk adjusted performance of
(0.11), and Market Risk Adjusted Performance of
(0.22) to validate the risk estimate we provide.
Some Hawaiian technical indicators suggest recoup
The standard deviation is down to 3.15 as of today. Hawaiian Holdings exhibits very low volatility with skewness of 0.8 and kurtosis of 2.17. However, we advise investors to further study Hawaiian Holdings technical indicators to ensure that 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 Hawaiian Holdings' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Hawaiian 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.
The Bottom Line
Whereas some other companies in the airlines industry are either recovering or due for a correction, Hawaiian may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 30th of January 2023, our up-to-date 90 days buy-hold-sell recommendation on the company is
Strong Hold. We believe Hawaiian Holdings is currently
undervalued with
close to average odds of financial turmoil for the next two years.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile 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 Rifka Kats do not own shares of Hawaiian Holdings. Please refer to our
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