A recent look at ownership and volatility brings us to a 0.02700 target portfolio weight (as a decimal) for Steel Connect, Inc. (NasdaqGS:STCN) Target weight is the volatility adjusted recommended stock position size for a position in your portfolio. The maximum target weight is 7% for any given stock. The indicator is based off of the 100 day volatility reading and calculates a target weight accordingly. If a stock has been more volatile of late, the lower the target weight will be. The 3-month volatility stands at 31.829900 (decimal). This is the normal returns and standard deviation of the stock price over three months annualized.
A highly common way to study stocks is through fundamental analysis. Investors examining the fundamentals may be analyzing the underlying factors that can affect the performance of a particular company. When focusing in on a specific company, investors will look at company management, financial information, business prospects, and industry competition. The goal of digging into the numbers is often times a way to calculate the current value of a company and try to gauge the value into the future. Zooming in on the vital statistics of a company can help provide a glimpse of the company’s overall health.
50/200 Simple Moving Average Cross
Steel Connect, Inc. (NasdaqGS:STCN) has a 0.88744 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.
Returns and Margins
Taking look at some key returns and margins data we can note the following:
Steel Connect, Inc. (NasdaqGS:STCN) has Return on Invested Capital of -0.041350, with a 5-year average of -0.073604 and an ROIC quality score of 0.086840. Why is ROIC important? It’s one of the most fundamental metrics in determining the value of a given stock. It helps potential investors determine if the firm is using it’s invested capital to return profits.
Investors may be combing through all the latest earnings reports and trying to make sense of all the numbers. With lots of information readily available, investors may be searching for that next batch of stocks to add to the portfolio. Finding high quality stocks may be at the top of the investor’s checklist. Once high quality stocks are spotted, the investor may be then looking for bargains among those stocks. Many investors will look for stocks that have displayed consistent earnings growth over an extended period of time. When a company drastically over performs for a quarter, investors may be quick to investigate. The same things may be done if a company severely underperforms compared to projections.
Steel Connect, Inc. (NasdaqGS:STCN) of the Support Services sector closed the recent session at 2.020000 with a market value of $120347.
In looking at some Debt ratios, Steel Connect, Inc. (NasdaqGS:STCN) has a debt to equity ratio of 4.26337 and a Free Cash Flow to Debt ratio of 0.004472. 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 -78.73656. 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. Steel Connect, Inc.’s ND to MV current stands at 3.042237. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.
Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.190764 for Steel Connect, Inc. (NasdaqGS:STCN). 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 may be analyzing the portfolio as we continue to move closer to the end of the year. Studying first half results may assist to identify trades that panned out, and those that didn’t. Keeping tabs on pervious trade outcomes may be a good way to accurately see what actually happened. It may be necessary to dig a little deeper to try and figure out why certain trades worked, and why others did not. Many investors may feel like they have missed the boat, and they may be wondering if stocks will see increased momentum closing out the year. Attaining comprehensive knowledge of the markets may take years to truly figure out. Combining technical analysis and tracking fundamentals may help the investor see the complete picture and develop confidence for trading into the future. Being able to sift through the endless sea of information may take some perseverance and extreme focus.
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. Steel Connect, Inc. (NasdaqGS:STCN)’s Cash Flow to Capex stands at 1.100676.
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 -10.39906 for Steel Connect, Inc. (NasdaqGS:STCN). The one year Growth EBIT ratio stands at -0.73208 and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at -5.75927 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 12.85073. The one year growth in Net Profit after Tax is -2.45269 and lastly sales growth was 0.81389.
When deciding how to best approach the stock market, individual investors may need to figure out what their time horizon is going to be. Short-term traders may only be looking to hold stocks for a short period in order to capitalize on fluctuations. Longer-term investors may be looking at more of a buy and hold strategy, and they may not be very concerned with the day to day shifts of a stock’s price. Accumulating as much knowledge as possible about specific stocks and the markets in general can help the investor prepare for success. Because there is no magic strategy that can be employed to guarantee profits, investors may need to evaluate multiple methods before choosing which one to pursue.