Estia Health Limited (ASX:EHE) has seen year over year cash flow change of -0.24486. This is calculated as the one year percentage growth of the firm’s cash flow from operations from their publicly filed statement of cash flows. Cash reserves are an important element for an investor to consider when analyzing a stock. A continued reduction in cash flow could spell trouble for a firm while on the other hand solid continued cash flow growth should translate into stock growth.
Investing in the stock market can be highly unpredictable. Veteran investors may have spent many years studying the market. At some point along the way, many investors may have had to make some tough decisions. Making the tough stock portfolio decisions can seem like a daunting task, especially if some wrong calls have been made in the past. Investors who are able to quickly learn from previous mistakes may be much better situated if they are able to keep from repeating those mistakes. When just starting out, investors may want to go slow and steady in order to focus on the simpler investing ideas first.
Estia Health Limited (ASX:EHE) of the Health Care Equipment & Services sector closed the recent session at 2.680000 with a market value of $482225.
Taking look at some key returns data we can note the following:
Estia Health Limited (ASX:EHE) has Return on Invested Capital of 0.082895, with a 5-year average of 0.102290 and an ROIC quality score of 3.288933. 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 0.101903 for Estia Health Limited (ASX:EHE). 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. Estia Health Limited (ASX:EHE)’s Cash Flow to Capex stands at 1.307157.
Equity market investors have plenty of information available to them when making stock selections. One of the toughest parts of selecting stocks may be figuring out which data to pay attention to. There are always swirling headlines in today’s financial news media. While some information may be highly important, other information may be much less important. Knowing exactly what to look for when doing stock research may take a lot of time to master. Investors who are able to stay highly focused may find it much easier to spot opportunities in the market. Once the investor knows what to look for, the stock market puzzle may be a bit easier to start piecing together.
Near-Term Growth Drilldown
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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 -0.24486 for Estia Health Limited (ASX:EHE). The one year Growth EBIT ratio stands at -0.04849 and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at 0.00699 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 0.00275. The one year growth in Net Profit after Tax is 0.01888 and lastly sales growth was 0.05754.
In looking at some Debt ratios, Estia Health Limited (ASX:EHE) has a debt to equity ratio of 0.10677 and a Free Cash Flow to Debt ratio of 0.302913. 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 1.01100. 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. Estia Health Limited’s ND to MV current stands at 0.094644. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.
Investors may be trying to decide which way the stock market will shift over the next couple of quarters. Having a general idea based on research is one thing, but constantly trying to time the market may lead to negative portfolio performance. Of course, overall market downturns can be frustrating to everyone invested in shares. Being able to ride out the day to day volatility and make proper investing decisions based on solid stock examination, may help the investor secure profits down the line. Investors who spend too much time focusing on stocks that have already made a run may find themselves in a sticky situation if they get into the name to late. Just because a certain stock has been going up for a long time, it doesn’t mean that the momentum will be sustained into the future. Taking the time to find quality stocks instead of just looking at the hot stock of the day, may allow investors to keep thriving in the market.
50/200 Simple Moving Average Cross
Estia Health Limited (ASX:EHE) has a 1.08337 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.
Investors may be wondering what’s in store for the next couple of months in terms of the stock market. Bull markets are times when investors may be willing to take some liberties with stock picks. Risk management is typically on the minds of many investors. Investors trying to gain an advantage may be searching for the perfect balance and diversification to help ease the risk and give the portfolio a needed boost. With so many different stocks to study, it may take a while to hone in on the proper ones. Investors will also be closely following the next round of economic data. Investors may be on the lookout for the next major data announcement that either keeps the bulls in charge or ushers in the bears.
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