Investors looking to take advantage of cash heavy shares, they might look first to the cash flow of a company, and how fast that is growing. GFT Technologies SE (XTRA:GFT) currently has one year cash flow growth of 0.49006 1yr Growth Cash Flow = 1 year percentage growth of a company’s Cash Flow from operations (Cash Flow Statement). Analyzing cash flow can alert shareholders to potential dangers that may result from a lack of liquidity. Looking at the positive or negative movement of a company’s reported free cash flow will help determine if it has the necessary funds to finance capital expenditures and keep paying dividends.
With most types of investments, there is typically some level of risk. This is no different when dealing with the stock market. Investors have to decide how much risk is acceptable and plan accordingly. Many new stock market investors face the challenge of deciding where to begin. Following strategies that have proven to work in the past may be one way to go. Many investors will look to mimic the strategies of the most celebrated investors. Although this may be a good way to start, it may be necessary to fully understand every aspect that those successful investors examine. Blindly following trading plans without doing the proper research can lead to future trouble down the line if there is indeed a market shake-up.
In taking a look at some other key growth stats we note that the one year Growth EBIT ratio stands at -0.31740 for GFT Technologies SE (XTRA:GFT) and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at -0.22099 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 0.23447. The one year growth in Net Profit after Tax is 0.04630 and lastly sales growth was -0.02315.
GFT Technologies SE (XTRA:GFT) has a present suggested portfolio ownership rate of 0.02000 (as a decimal) ownership. Target weight is the volatility adjusted recommended position size for a stock in your portfolio. The maximum target weight is 7% for any given holding. The indicator is based off of the 100 day volatility reading and calculates a target weight accordingly. The more recent volatility of a stock, the lower the target weight will be. The 3-month volatility stands at 51.059700 (decimal). This is the normal returns and standard deviation of the stock price over three months annualized.
Diving down into some additional near-term indicators we see that the Capex to PPE ratio stands at 0.109451 for GFT Technologies SE (XTRA:GFT). 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.
One of the biggest downfalls of the individual investor is not being able to take losses when it becomes necessary. Of course nobody wants to take a loss, but the repercussions of not letting go of a losing stock can end up sealing the demise of the well-intentioned investor. Many professionals would probably agree that the pain of realizing a loss is more intense than the joy of picking a winner. Investors who become reluctant to sell losers may be delaying the inevitable and essentially suffocating the portfolio. Not addressing the losing side can have severe negative effects on the long-term health of the portfolio. Investors may have to find a way to face the music and sell when they realize that a trade has gone sour.
In looking at some key ratios we note that the Piotroski F Score stands at 6 (1 to 10 scale) and the ERP5 rank holds steady at 3454. The Q.I. Value of GFT Technologies SE (XTRA:GFT) currently reads 20.00000 on the Quant scale. The Free Cash Flow score of 1.895905 is also swinging some momentum at investors. The Germany based firm is currently valued at 528.
Some other notable ratios include the Accrual Ratio of 0.052905, the Altman Z score of 2.439592, a Montier C-Score of 4.00000 and a Value Composite rank of 15.
Defining specific goals and creating an overall stock trading strategy can be a big help for the individual investor. Some investors are only interested in buy and hold strategies, while others will opt to try and capitalize on short-term market movements. Investors may also decide to do a little bit of both. They may choose a selection of stocks that they plan on holding for a long time, and they may choose others that they plan on holding for only a short period of time. Whichever way the investor decides to go, they should be prepared to complete all the research. Whether they want to study the fundamentals, technicals, or both, finding quality stocks may be at the forefront of the search.
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. GFT Technologies SE (XTRA:GFT)’s Cash Flow to Capex stands at 12.276129.
Individual investors are constantly hearing about the next hot stock to buy. Acting purely on these types of tips can be hazardous to the portfolio if the research is not completed. Sometimes these stock tips will pan out and be correct, other times they can leave the investor wondering why they acted on the speculative advice. Even if a stock tip is correct, the results may have already been manifested and the investor would simply be getting in way too late. Knowing what information is reliable can drastically improve the chances of making smarter stock picks. Even the most praised stocks may not be able to withstand an overall market downturn.
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