By examining key indicators for Natuzzi SpA and Bassett, you can assess how market fluctuations impact their stock prices and explore potential risk diversification by including both in your portfolio. Pair trading strategies could be considered, such as taking a long position in Bassett and a short position in Natuzzi SpA. For more insights, you might want to explore our [pair correlation](#) module.
Let's dive into asset analysis. Asset utilization typically measures the revenue generated per dollar of assets a company holds. As of November, Natuzzi's return on assets indicates less efficient asset usage.
Key Takeaways
Natuzzi SpA, with its market capitalization of just
47.6M, offers a compelling opportunity for investors looking to capitalize on the furnishings sector's potential upswing. Despite its modest size, the company maintains a healthy current ratio of 1.06X, suggesting it can comfortably meet its short-term obligations, making it an intriguing prospect for those seeking stability amid a broader market rally.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Natuzzi SpA. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Natuzzi SpA, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Natuzzi SpA's Liquidity
Natuzzi SpA
financial leverage refers to using borrowed capital as a funding source to finance Natuzzi SpA ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Natuzzi SpA 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 Natuzzi SpA'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 Natuzzi SpA'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 Natuzzi SpA's total debt and its cash.
Natuzzi SpA Gross Profit
Natuzzi SpA Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Natuzzi SpA 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 Natuzzi SpA Gross Profit growth over the last 10 years. Please check Natuzzi SpA's
gross profit and other
fundamental indicators for more details.
Detailed Perspective On Natuzzi SpA
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 products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Natuzzi SpA revenue. Based on the latest financial disclosure, Natuzzi SpA reported 328.62
M of revenue.
This is 95.39% lower than that of the Household Durables sector and significantly higher than that of the
Consumer Discretionary industry. The revenue for all United States stocks is 96.52% higher than that of Natuzzi SpA. As for Bassett Furniture we see revenue of 390.14
M, which is much higher than that of the Consumer Discretionary
| Natuzzi | 328.62 Million |
| Sector | 0.0 |
| Bassett | 390.14 Million |
Buy low, sell high is a timeless strategy, and Natuzzi SpA might just be the ticket for savvy investors. Trading on the NYSE under the ticker NTZ, this company in the furnishings sector offers a unique buying opportunity as the market rallies. With a market capitalization of $47.64 million and a price-to-book ratio of 0.70, Natuzzi appears undervalued compared to its book value per share of $6.26. Despite reporting a net income loss of 16.2 million, the company's current ratio of 1.06X suggests it has enough liquidity to cover its short-term liabilities. As the market trends upward, Natuzzi's potential for growth could make it an attractive option for those looking to capitalize on its current valuation..
Natuzzi SpA is estimated to stay under $4.42 in December
Natuzzi SpA's stock is currently showing a notable price fluctuation, with a variance of 19.75. Despite this volatility, forecasts indicate the stock may stay below $4.42 in December, suggesting limited upward potential in the short term. Investors should keep a close eye on these fluctuations to determine if the risks align with their strategies. Natuzzi SpA exhibits above-average downside volatility, which can be crucial for timing market entries and exits. Understanding these trends helps investors gauge the stock's risk relative to overall market movements during both rising and falling markets.
Increased volatility, especially in bear markets, can significantly affect Natuzzi's stock price, often prompting investors to adjust their portfolios by diversifying into other assets as prices decline.Despite the broader market's upward momentum, Natuzzi SpA's stock performance remains lackluster, signaling potential caution for investors. With an analyst overall consensus of "Strong Sell" and a valuation real value of 3.59, the stock appears to be trading below its perceived worth. The possible upside price of 8.89 suggests there might be room for growth, but this is overshadowed by the risks indicated by the current sentiment. Investors should weigh these factors carefully, considering both the potential rewards and the inherent risks. With a possible downside price as low as 0.0433, it's crucial to approach this investment with a clear strategy and an understanding of the market dynamics that could impact Natuzzi's future performance. Given these considerations, a cautious stance might be prudent until more favorable indicators emerge..
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Natuzzi SpA. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
