Time to exit SCANA is now

In this post I will digest SCANA. I will evaluate why recent SCANA price moves suggest a bounce in February. The company Piotroski F Score is 3 - Frail. Considering 30-days investment horizon, SCANA is expected to generate 120.88 times more return on investment than the market. However, the company is 120.88 times more volatile than its market benchmark. It trades about 0.21 of its potential returns per unit of risk. The market is currently generating roughly 0.02 per unit of risk. We found thirty-seven available financial indicators for SCANA which can be compared to its peers in the sector. To make sure the equity is not overpriced, please validate all SCANA Corporation fundamentals including its EBITDA, Cash Flow from Operations and the relationship between Price to Book and Total Debt . Given that SCANA has Price to Earning of 12.69X, we advise you double-check SCANA latest market performance to make sure the company can sustain itself in the future. Use SCANA to enhance returns of your portfolios. The stock experiences normal upward fluctuation. Check odds of SCANA to be traded at $49.0 in 30 days.
Published over a year ago
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Reviewed by Michael Smolkin

SCANA CP NEW has roughly 462M in cash with (243.1M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.24. This firm dividends can provide a clue to current valuation of the stock. SCANA one year expected dividend income is about $0.9 per share. About 71.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.27. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. SCANA recorded loss per share of 1.41. The entity last dividend was issued on 2018-12-07. The firm had 2:1 split on 1995-05-26.

How important is SCANA's Liquidity

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

SCANA Correlation with Peers

Investors in SCANA can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in SCANA. Diversification will allow for the same portfolio return with reduced risk. The correlation table of SCANA and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities SCANA 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 SCANA for more details

Is SCANA valued objectively by the market?

The latest price spikes of SCANA Corporation has created some momentum for investors as it was traded today as low as 46.67 and as high as 46.67 per share. The company executives were quite successful positioning the entity components to exploit market volatility in February 2019. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 234.7974. The very high volatility is mostly attributed to the latest market swings and not very good earning reports from some ot the SCANA partners. SCANA preserves 1.28b of current liabilities. SCANA is trading at 46.67. Today lowest is 46.67. SCANA Earning Before Interest and Taxes USD is rather stable at the moment. SCANA Revenues USD is rather stable at the moment. Additionally, SCANA Net Income Per Employee is rather stable at the moment.
To conclude, our current buy-hold-sell recommendation on the firm is Strong Hold. We believe SCANA is undervalued with below average probability of financial unrest for the next two years.

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

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