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. GUD Holdings Limited (ASX:GUD) currently has one year cash flow growth of -0.12902 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.
As most investors realize, markets will trade in cycles. This being the case, most investors will likely experience extremes of both bull and bear markets during their investing tenure. A big factor in scooping up profits during bull or bear markets is having the ability to identify when markets are beginning to peak or bottom out. This is obviously no easy task even for the most experienced investor. Certain types of stock investment strategies may do better during different market conditions. Professional traders may use highly complex systems in order to spot market opportunities. Novice investors who are just starting out may use simple strategies at first. Choosing a stock picking strategy that is tailored to fit the individual investor’s goals and financial situation may be a good way to create a solid base from which to start from. With the proper amount of research and discipline, the novice investor can begin to make the transition into becoming a skilled investor.
In taking a look at some other key growth stats we note that the one year Growth EBIT ratio stands at 0.09707 for GUD Holdings Limited (ASX:GUD) and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at 0.11028 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 -0.11084. The one year growth in Net Profit after Tax is 29.59851 and lastly sales growth was 0.12339.
GUD Holdings Limited (ASX:GUD) has a present suggested portfolio ownership rate of 0.04380 (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 31.287600 (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 0.401751 for GUD Holdings Limited (ASX:GUD). 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.
Investors are constantly searching for quality stocks to help provide a boost to the portfolio. Quality can come in various forms such as a company that is a sales leader in a market that is growing or a company that is a technological leader with a proven record of success. Finding quality stocks at a bargain price is typically on the agenda for most investors. Because the economy and the stock market do not always go hand in hand, it may be important to analyze individual stocks. Some investors may choose to buy when the market is going up and sell when the market is going down. Other investors will opt to do the exact opposite. Whether the investor is going with the trend or against it, it can be important to make sure that the right types of stocks are in the portfolio. Nobody can exactly predict the future, but staying on top of portfolio holdings may help when the necessary decisions need to be made.
In looking at some key ratios we note that the Piotroski F Score stands at 7 (1 to 10 scale) and the ERP5 rank holds steady at 3850. The Q.I. Value of GUD Holdings Limited (ASX:GUD) currently reads 30.00000 on the Quant scale. The Free Cash Flow score of 0.278197 is also swinging some momentum at investors. The Australia based firm is currently valued at 2034.
Some other notable ratios include the Accrual Ratio of 0.197794, the Altman Z score of 4.967854, a Montier C-Score of 2.00000 and a Value Composite rank of 47.
As we move deeper into the year, investors will be paying attention to which companies are well-positioned for future growth. Even if the current earnings reports are a mixed bag, investors can study which industries look they are taking the top spot. Many active investors may be focusing on which way estimates are trending heading into the company earnings release. Analysts will often make updates to projections shortly before and after the earnings numbers are provided. Many active investors may enjoy the volatility that comes with trading around earnings, but others will choose to let the heavy action pass before deciding which stocks to buy or sell next.
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. GUD Holdings Limited (ASX:GUD)’s Cash Flow to Capex stands at 9.029526.
Investors may be searching for various types of stocks to help diversify the portfolio. Growth stocks include shares of companies that may have the possibility of generating higher than average profit growth and revenues. These companies tend to pump earnings back into the business, and they generally expand quicker than the overall economy. Although growth stocks can be a bit riskier, they can also provide a higher level of reward down the line. Cyclical stocks consist of companies that typically will ride the wave of the overall economy. These shares tend to perform well when the economy is doing well and perform poorer when the economy is faltering.
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