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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Allspring Income Oppty (XNYS:EAD) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
EAD
Name:
Allspring Income Oppty (XNYS:EAD)
Sector:
12.87M
Industry:
Asset Management
CEO:
Total Employees:
-
Our Technological Advancement Rating
Our Rating:
-
-
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF ALLSPRING INCOME OPPTY(EAD) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND ASSET MANAGEMENT INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
6.83
One Month Price Target:
$6.86
Six Month Price Target :
$6.99
Likely Price in One Year's Time:
Ticker:
$7.15
Likely Trading Range Today Under (Normal Volatility)
$6.81
Price Upper limit ($) :
$6.85
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$6.6
This week:
$6.33
This month :
$5.82
Other Primary facts
Market Cap:
434.77M
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
-
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
8.86%
-19.65%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$7.88
$7.40
$5.78
$6.26
Medium risk (<10%) entry points
Buy Call
Sell Call
$7.25
Buy Put:
Sell Put:
$7.15
$6.41
$6.51
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
EAD
Sharpe Ratio:
-1.62%
Comparison:
EAD, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -302.08% lower than the industry
& is -171.29% lower than the market/S&P 500 average
Average Returns/Yield of
EAD
Daily returns:
-0.02%
Weekly returns:
-0.09%
Monthly returns:
-0.34%
Yearly returns:
9.18%
Comparison of returns:
Average annual returns/yield (last 3 years) is -144.80% below industry average
Classification:
EAD, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.8
Statistical test of Returns:
EAD has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
1.60%
Weekly Volatility:
3.58%
Monthly Volatility:
7.15%
Yearly Volatility:
24.78%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.91%
Volatility in last five trading days has been -43.31% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-3.30%
Weekly VaR:
-7.38%
Monthly VaR:
-14.77%
How Much Can the price of
EAD
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-13%
Worst case (decline):
-51.16%
This translates to price declining to:
$5.92
This translates to price declining to:
$3.34
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
EAD is a 4.23% riskier investment compared to the market/S&P 500 & is -10.71% less risky than Nasdaq(IXIC)
Risk (measured by volatility) is -38.45% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
EAD
Beta in relation to market/S&P 500--0.69
Expected beta in 1 year's time:
0.589
Expected beta in 3 year's time:
0.833
Unlevered (debt free) Beta:
-
Beta in relation to Nasdaq (XNAS):
0.524
Beta in relation to all global stocks::
0.617
Beta Comparison & Analysis
Beta of competitors/peers::
1.061
Beta is -35.29% lower than peers
Average Industry Beta:
1.694
Beta is -59.47% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
-
Alpha provided | Alpha Analysis
Alpha provided:
-0.120
Alpha is 114.75% above industry average alpha yield
Alpha is -762% below the market average
Analysis of Cost of Capital of
EAD
Equity cost of capital:
0.079
Equity cost of capital is -46.78% below industry mean WACC
Unlevered (without debt) cost of capital:
-
Before-tax cost of debt:
-34.14%
After-tax cost of debt:
-26.97%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
-26.97%
WACC is -111.40% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
-
Revenue growth rate per share of (3Y):
0.84
Annual revenue growth rate is 350.72% above the industry average
EPS:
$1.44
Expected Annual growth rate of EPS (3Y):
37.83%
Expected future EPS growth rate is 36.20% higher than the Asset Management industry
Free cash flow (FCF) per share:
$3.62
Balance sheet equity growth per share: -2.11%
Equity growth rate per share is -109.96% lower than the industry
Debt per share
-
EBITDA per share
-
Valuation Analysis Today of
EAD
P/E Ratio:
-
P/E Ratio of Competitors/Peers:
7.09
-
Stock price/value with industry average P/E ratio: $23.25
EAD is -70.63% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $19.42
Present value of the expected future dividends only: $3.19
P/S (Price to Sales ratio):
6.66
Price to sales ratio is -2.78% below the industry mean
P/B (Price to book value ratio):
0.84
Price to free cash flow: 1.88
Price to free cash flow ratio is -80.41% lower than the industry
Net income growth rate (3Y):
523.15%
Net income growth rate is 259.85% higher than the average industry net income growth rate
Dividend Analysis
Dividend payout rate: -291.21%
Dividend yeild: 3.54%
Previous Dividend: $0.06
Previous adjusted dividend: $0.06
Previous Dividend: $0.24
Expected next dividend best case: $0.06
Expected next dividend worst case: $0.06
Average dividend payment (long-term): $0.06
Average dividend increase/decrease (growth rate) % per period: 0.25%
-
-
-
-
-
-
Dividend History:
2022-06-10--$0.06
2022-04-11--$0.06
2022-02-11--$0.06
2022-05-12--$0.06
2022-03-11--$0.06
2022-01-13--$0.06
Dividend growth rate is -95.47% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
34.96%
Net debt to equity ratio:
34.65%
Debt to assets ratio:
24.97%
Net debt to assets ratio:
24.74%
Debt-to-asset ratio is -52.23% below industry average
Ability to repay debt:
Interest coverage ratio:
1.21
Interest coverage ratio is -97.96% less than industry average
Looking forward:
Debt growth rate:
18.73%
Annual debt growth is -371% lower than industry average debt growth rate
Debt repayment rate in previous year: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.672
Statistical significance of correlation:
EAD has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.576
Stock price is 16.58% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.576
Correlation of price movement with Nasdaq (^IXIC):
0.025
Covariance of price movement with the market:
0.024
Kurtosis
42.855
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
-3.372
Returns are left (negative) skewed; mean returns are lower than median and mode returns
Fundamental Analysis & Dupont Analysis of
EAD
Gross Profit Margin Ratio:
224%
Operating Profit Margin Ratio:
74.36%
Operating profit margin is 58.08% higher than the industry
Net Profit Margin Ratio:
224%
Effective Tax Rate:
-
-
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
-2.57%
Return on equity (ROE) is -110.15% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
-1.83%
Return on assets (ROA) is -131.39% lower than the industry
Financial Leverage:
1.3x
Current Ratio:
0
-
Cash Conversion Cycle (days):
-158.3
Cash conversion cycle is -118.23% below industry average
The remaining useful life of property plant & equipment is: 6.6 years
Stock based compensation to net income ratio:
-
In-depth Efficiency Analysis
Revenue generated per employee:
-
-
EBITDA generated per employee:
-
-
Profit generated per employee:
-
-
Free cash flow (FCF) generated per employee:
-
-
Assets/Capital per employee
-
-
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
EAD
Invesco Adv Muni II (XNYS:VKI)
Cornerstone Total Return (XNYS:CRF)
GAMCO Gl Gld NR & Inc (XNYS:GGN)
abrdn Emg Mkts Eq Inc (XNYS:AEF)
Clough Glbl Opptys (XNYS:GLO)
Allspring Multi-Sector (XNYS:ERC)
BLUE RIDGE BANKSHARES, INC. (XNYS:BRBS)
Neuberger Municipal (XNYS:NBH)
Eaton Vance CA Muni Bd (XNYS:EVM)
Current Analyst Ratings
Strong buy�0%
Buy�0%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: -
Income Statement
Period:
TTM
Date:
4/30/20
Revenue:
69.92M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
17.81M
52.11M
-
-
121.51K
-
-
121.51K
-
- 66227.33K
-
- 80462.79K
51.99M
- 14235.46K
- 14235.46K
-
- 14235.46K
Statement of Cash Flow
Date:
Period:
- 1355.81K
Differed Income Tax :
-
Stock Based Compensation :
-
Change in Working Capital :
21.59M
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
- 145216.72K
Net Cash Provided by Operating Activities:
12.87M
Investments in PP&E:
-
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
4/30/21
2021
FY
1.74M
-
1.74M
11.12M
-
-
-
-
-
-
764.10M
-
-
-
777.07M
777.07M
27.48M
-
-
-
-
-
194.00M
-
194.00M
416.16M
222.16M
579.77M
- 24864.38K
-
-
April 30, 2021 at 6:00:00 AM
17.93M
554.91M
777.07M
-
194.00M
192.3M
-
-
-
-
-
- 270.77K
- 41454.62K
30.60M
- 11125.39K
-
- 11125.39K
1.74M
-
12.87M
-
12.87M
Our Proprietary Portfolio Rating
Our Rating:
-
Price Forecast/Expected Price in Next 5 Years of
EAD
2023
2024
2025
2026
2027
$8.43
$8.82
$9.23
$9.66
$10.10