Beacon Roofing Supply, Inc. (NasdaqGS:BECN) has seen cash flow growth over the past year of 0.99130. Cash flow and cash flow growth can reveal to an investor how quickly the firm is generating inflows of cash from their business operations.
As we sail into the second half of the calendar year, investors may be looking to see what has gone right and what has gone wrong so far this year. Making necessary changes to some holdings may help position investors for the next couple of quarters. Being able to cut the riskier losers and take some profits from winners may help solidify the stock portfolio. As we run through the next round of company earnings reports, investors will be keeping a close eye on the data that is reported. Investors may be looking to buy companies that continue to post beats on the earnings front, and cut ties with ones that are not hitting their marks.
Beacon Roofing Supply, Inc. (NasdaqGS:BECN) of the General Retailers sector closed the recent session at 39.360000 with a market value of $2680867.
Taking look at some key returns data we can note the following:
Beacon Roofing Supply, Inc. (NasdaqGS:BECN) has Return on Invested Capital of 0.143807, with a 5-year average of 0.284574 and an ROIC quality score of 8.370014. Why is ROIC important to potential investors? It’s one of the most fundamental metrics in determining the value of a firm’s shares. It helps potential investors determine if the company is using it’s invested capital to return profits.
Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.148676 for Beacon Roofing Supply, Inc. (NasdaqGS:BECN). The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.
In addition to Capex to PPE we can look at Cash Flow to Capex. This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment needs. Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. Beacon Roofing Supply, Inc. (NasdaqGS:BECN)’s Cash Flow to Capex stands at 5.591464.
There are many factors at play when looking to successfully conquer the stock market. New investors have the tendency to become overwhelmed at the prospect of putting their hard earned money to work. If the individual investor decides that they are going to be managing their own money, they may be looking for a proper place to start. Investors might want to start by clearly defining their own goals. Creating realistic and attainable goals can help get the investor walking down the right path. As many experienced investors know, setting goals and staying on track can be a big help for navigating the markets.
In looking at some Debt ratios, Beacon Roofing Supply, Inc. (NasdaqGS:BECN) has a debt to equity ratio of 1.63878 and a Free Cash Flow to Debt ratio of 0.065422. This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated. In terms of Net Debt to EBIT, that ratio stands at 12.88639. This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt. The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio. Beacon Roofing Supply, Inc.’s ND to MV current stands at 1.113423. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.
Near-Term Growth Drilldown
Now we’ll take a look at some key growth data as decimals. One year cash flow growth ratio is calculated on a trailing 12 months basis and is a one year percentage growth of a firm’s cash flow from operations. This number stands at 0.99130 for Beacon Roofing Supply, Inc. (NasdaqGS:BECN). The one year Growth EBIT ratio stands at -0.05259 and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at 0.14235 which is calculated similarly to EBIT Growth with just the addition of amortization.
Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at 0.80014. The one year growth in Net Profit after Tax is -0.22275 and lastly sales growth was 0.35466.
Equity market investing has a way of provoking strong emotions. When markets become frantic, investors may feel compelled to make decisions that they might not normally make. Having the proper perspective and staying focused can help the individual investor stay committed to the previously created plan. Trying to predict the day to day movements of the stock market can be extremely difficult. Even the top professionals may get thrown for a loop every now and then. Chasing winners and holding onto losers may be a recipe for portfolio disaster over the long run. Investors who are able to stay calm and think logically should be able to better position themselves when markets become stormy.
50/200 Simple Moving Average Cross
Beacon Roofing Supply, Inc. (NasdaqGS:BECN) has a 0.79289 50/200 day moving average cross value. Cross SMA 50/200 (SMA = Simple Moving Average) and is calculated as follows:
Cross SMA 50/200 = 50 day moving average / 200day moving average. If the Cross SMA 50/200 value is greater than 1, it tell us that the 50 day moving average is above the 200 day moving average (golden cross), indicating an upward moving share price.
On the other hand if the Cross SMA 50/200 value is less than 1, this shows that the 50 day moving average is below the 200 day moving average (a death cross), and tells us that share prices has fallen recently and may continue to do so.
Stock analysis typically falls into two main categories. Some investors may prefer technical analysis, and others may prefer to study the fundamentals. Many investors will keep an eye on both. Technical analysis involves trying to project future stock price movements based on prior stock activity. Technicians strive to identify chart patterns and study other historical price and volume data. Technical investors look to identify trends when assessing a stock. The trend is typically considered to be the main direction of the share price. Trends are generally categorized as either up, down, or sideways. If a bullish trend is spotted, the trader may expect the upward trend to continue and thus try to capitalize on further upward action.
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