Shareholders Equity – Antochi http://antochi.ro/ Tue, 04 Jan 2022 05:15:26 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://antochi.ro/wp-content/uploads/2021/07/icon-1-150x150.png Shareholders Equity – Antochi http://antochi.ro/ 32 32 What types of shareholders hold the majority of Multitude SE (ETR: FRU) shares? https://antochi.ro/what-types-of-shareholders-hold-the-majority-of-multitude-se-etr-fru-shares/ Tue, 04 Jan 2022 05:09:00 +0000 https://antochi.ro/what-types-of-shareholders-hold-the-majority-of-multitude-se-etr-fru-shares/ The large shareholder groups of Multitude SE (ETR: FRU) have power over the company. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim […]]]>

The large shareholder groups of Multitude SE (ETR: FRU) have power over the company. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet.

Multitude is not a large company by global standards. It has a market cap of 93 million euros, which means it wouldn’t have the attention of many institutional investors. In the graph below, we can see that institutional investors have bought into the company. Let’s dig deeper into each type of owner, to find out more about Multitude.

See our latest review for Multitude

XTRA: Distribution of FRU ownership on January 4, 2022

What does institutional ownership tell us about the multitude?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. . We would expect most businesses to have some institutions listed, especially if they are growing.

We can see that Multitude has institutional investors; and they own a good portion of the company’s stock. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Multitude’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

profit and revenue growth
XTRA: FRU Earnings and Revenue Growth January 4, 2022

Multitude does not belong to hedge funds. With a 29% stake, CEO Jorma Jokela is the largest shareholder. For context, the second largest shareholder owns around 27% of the outstanding shares, followed by a 10% stake by the third largest shareholder.

To make our study more interesting, we found that the top 2 shareholders have a controlling stake in the company, which means that they are powerful enough to influence the decisions of the company.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.

Insider property of the multitude

The definition of business insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders have a significant stake in Multitude SE. Insiders hold 29 million euros of shares in the company at 93 million euros. This may suggest that the founders still own a lot of stocks. You can click here to see if they bought or sold.

General public property

The general public, generally individuals, hold 17% of Multitude’s capital. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.

Private shareholders

With a 27% stake, private equity firms are able to play a role in shaping corporate strategy with an emphasis on value creation. Some might like this, as sometimes private capital is activists holding management to account. But other times, the private equity sells, after you have taken the company to the stock market.

Next steps:

While it is worth considering the different groups that own a business, there are other factors that are even more important. To this end, you need to know the 1 warning sign we spotted with Multitude.

But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.


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Does his finances have a role to play in increasing Air Partner plc (LON: AIR) inventories recently? https://antochi.ro/does-his-finances-have-a-role-to-play-in-increasing-air-partner-plc-lon-air-inventories-recently/ Sun, 02 Jan 2022 08:06:58 +0000 https://antochi.ro/does-his-finances-have-a-role-to-play-in-increasing-air-partner-plc-lon-air-inventories-recently/ Air Partner (LON: AIR) had a strong run in the equity market with its share rising significantly 9.9% over the past month. As most know, fundamentals generally guide long-term market price movements, so we decided to look at the company’s key financial metrics today to see if they have a role to play in the […]]]>

Air Partner (LON: AIR) had a strong run in the equity market with its share rising significantly 9.9% over the past month. As most know, fundamentals generally guide long-term market price movements, so we decided to look at the company’s key financial metrics today to see if they have a role to play in the recent one. price movement. Specifically, we have decided to study Air Partner’s ROE in this article.

ROE or return on equity is a useful tool to assess how effectively a company can generate the returns on investment it has received from its shareholders. In simpler terms, it measures a company’s profitability relative to equity.

Check out our latest analysis for Air Partner

How do you calculate return on equity?

Return on equity can be calculated using the formula:

Return on equity = Net income (from continuing operations) ÷ Equity

Thus, based on the above formula, the ROE for Air Partner is:

11% = £ 2.6million £ 23million (based on the last twelve months to July 2021).

The “return” is the amount earned after tax over the past twelve months. This means that for every £ 1 of equity, the company generated £ 0.11 in profit.

What is the relationship between ROE and profit growth?

So far, we’ve learned that ROE is a measure of a company’s profitability. Based on how much of those profits the company reinvests or “withholds” and its efficiency, we are then able to assess a company’s profit growth potential. Assuming everything else remains the same, the higher the ROE and profit retention, the higher the growth rate of a business compared to businesses that don’t necessarily have these characteristics.

Growth in Air Partner profits and 11% ROE

At first glance, Air Partner appears to have a decent ROE. Especially compared to the industry average of 7.6%, the company’s ROE looks pretty impressive. It is probably because of this that Air Partner has been able to record a decent growth of 5.8% over the past five years.

We then performed a comparison between the growth of Air Partner’s net income with the industry, which found that the growth of the company is similar to the industry average growth of 5.8% over the course of the year. same period.

past profit growth

Profit growth is an important metric to consider when valuing a stock. It is important for an investor to know whether the market has factored in the expected growth (or decline) in company earnings. By doing this, they will have an idea if the stock is heading for clear blue waters or if swampy waters are waiting for them. If you’re wondering about Air Partner’s valuation, check out this gauge of its price / earnings ratio, relative to its industry.

Does Air Partner use its profits efficiently?

While Air Partner has a three-year median payout rate of 93% (meaning it retains 6.9% of profits), the company has still seen good profit growth in the past, which means that her high distribution rate did not hinder her ability to grow taller.

In addition, Air Partner has been paying dividends for at least ten years or more. This shows that the company is committed to sharing the profits with its shareholders. After studying the latest consensus data from analysts, we found that the company’s future payout ratio is expected to drop to 30% over the next three years. Thus, the expected drop in the payout ratio explains the expected increase in the company’s ROE to 22% over the same period.

Conclusion

Overall, we believe Air Partner has positive attributes. Especially the profit growth which was supported by an impressive ROE. Nonetheless, the high ROE could have been even more beneficial for investors if the company had reinvested more of its profits. As noted earlier, the current rate of reinvestment appears to be negligible. So far, we have only had a brief discussion about the company’s profit growth. To better understand Air Partner’s past earnings growth, check out this visualization of past earnings, revenue, and cash flow.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.


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Investor Opinion on TDCX Inc. Share Price Matching (NYSE: TDCX) https://antochi.ro/investor-opinion-on-tdcx-inc-share-price-matching-nyse-tdcx/ Fri, 31 Dec 2021 14:19:25 +0000 https://antochi.ro/investor-opinion-on-tdcx-inc-share-price-matching-nyse-tdcx/ When nearly half of businesses in the United States have price-to-earnings (or “P / E”) ratios below 17x, you might consider TDCX inc. (NYSE: TDCX) as a stock to be avoided entirely with its P / E ratio of 36x. However, the P / E can be quite high for a reason and requires further […]]]>

When nearly half of businesses in the United States have price-to-earnings (or “P / E”) ratios below 17x, you might consider TDCX inc. (NYSE: TDCX) as a stock to be avoided entirely with its P / E ratio of 36x. However, the P / E can be quite high for a reason and requires further investigation to determine if it is warranted.

TDCX has been doing a good job lately as its earnings have grown at a steady pace. One possibility is that the P / E is high as investors believe this respectable earnings growth will be enough to outperform the overall market for the foreseeable future. You really hope so, otherwise you are paying a pretty high price for no particular reason.

NYSE: TDCX price based on past earnings as of December 31, 2021
free data rich visualization

Is there enough growth for TDCX?

In order to justify its P / E ratio, TDCX should produce exceptional growth well above that of the market.

In retrospect, last year generated an exceptional 23% gain in the company’s bottom line. Fortunately, BPA is also up 150% overall from three years ago, thanks to the last 12 months of growth. As a result, shareholders would likely have welcomed these earnings growth rates over the medium term.

This contrasts with the rest of the market, which is expected to grow 11% over the next year, significantly lower than the company’s recent mid-term annualized growth rates.

In light of this, it’s understandable that TDCX’s P / E is above the majority of other companies. Presumably, shareholders are unwilling to get rid of something that they believe will continue to outsmart the stock market.

The last word

It is argued that the price / earnings ratio is a lower measure of value in some industries, but it can be a powerful indicator of corporate sentiment.

As we suspected, our review of TDCX found that its three-year earnings trends are contributing to its high P / E, as they look better than current market expectations. Right now, shareholders are comfortable with the P / E because they are quite confident that earnings are not threatened. Unless recent medium-term conditions change, they will continue to provide strong support for the share price.

Before you decide, we discovered 3 warning signs for TDCX that you need to be aware of.

If these risks make you reconsider your opinion on TDCX, explore our interactive list of high-quality stocks to get a feel for what else is out there.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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Sensorion SA’s (EPA: ALSEN) private equity firms are its biggest bettors, and their bets paid off as stocks gained 15% last week https://antochi.ro/sensorion-sas-epa-alsen-private-equity-firms-are-its-biggest-bettors-and-their-bets-paid-off-as-stocks-gained-15-last-week/ Tue, 28 Dec 2021 04:21:40 +0000 https://antochi.ro/sensorion-sas-epa-alsen-private-equity-firms-are-its-biggest-bettors-and-their-bets-paid-off-as-stocks-gained-15-last-week/ If you want to know who actually controls Sensorion SA (EPA: ALSEN), then you will have to look at the composition of its share register. With 53% of the capital, private equity firms own the maximum number of shares in the company. In other words, the group has everything to gain (or lose the most) […]]]>

If you want to know who actually controls Sensorion SA (EPA: ALSEN), then you will have to look at the composition of its share register. With 53% of the capital, private equity firms own the maximum number of shares in the company. In other words, the group has everything to gain (or lose the most) from its investment in the business.

As a result, private equity firms collectively got the highest score last week, with the company reaching a market cap of 159 million euros after a 15% share increase.

Let’s dig deeper into each type of Sensorion owner, starting with the table below.

Check out our latest analysis for Sensorion

ENXTPA: ALSEN Distribution of ownership December 28, 2021

What does institutional ownership tell us about Sensorion?

Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

Sensorion already has establishments registered in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Sensorion’s earnings history below. Of course, the future is what really matters.

profit and revenue growth
ENXTPA: ALSEN Earnings and Revenue Growth December 28, 2021

Hedge funds don’t have a lot of stock in Sensorion. Artal Group SA is currently the largest shareholder, with 33% of the shares in circulation. Meanwhile, the second and third shareholders respectively hold 19% and 6.6% of the outstanding shares.

To make our study more interesting, we found that the top 2 shareholders have a controlling stake in the company, which means that they are powerful enough to influence the decisions of the company.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same result can be obtained by studying the feelings of analysts. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.

Sensorion insider property

The definition of an insider may differ slightly from country to country, but board members still count. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board.

Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in some circumstances.

We note that our data does not show any member of the board of directors owning shares, personally. It is unusual not to have at least some personal holdings of board members, so our data may be wrong. A good next step would be to check how much the CEO is paid.

General public property

The general public, generally individual investors, own 21% of Sensorion’s capital. This size of ownership, while considerable, may not be enough to change company policy if the decision is not aligned with other large shareholders.

Private shareholders

With a 53% stake, private equity firms could influence Sensorion’s board of directors. Some might like this, as sometimes private capital is activists holding management to account. But other times, the private equity sells, after you have taken the company to the stock market.

Public enterprise ownership

It appears to us that public companies hold 16% of Sensorion. It may be a strategic interest and the two companies may have related business interests. It could be that they defused. This exploitation probably deserves to be deepened.

Next steps:

While it is worth considering the different groups that own a business, there are other factors that are even more important. Take risks for example – Sensorion has 4 warning signs (and 1 which makes us a little uncomfortable) we think you should be aware of.

Ultimately the future is the most important. You can access this free analyst forecast report for the company.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.


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Does its financial data have a role to play in the recent increase in inventory at Ciena Corporation (NYSE: CIEN)? https://antochi.ro/does-its-financial-data-have-a-role-to-play-in-the-recent-increase-in-inventory-at-ciena-corporation-nyse-cien/ Sun, 26 Dec 2021 12:32:08 +0000 https://antochi.ro/does-its-financial-data-have-a-role-to-play-in-the-recent-increase-in-inventory-at-ciena-corporation-nyse-cien/ Most readers already know that Ciena (NYSE: CIEN) stock has risen significantly 46% in the past three months. We wonder if and what role company financials are playing in this price change, because a company’s long-term fundamentals usually dictate market outcomes. In this article, we have decided to focus on Ciena’s ROE. ROE or return […]]]>

Most readers already know that Ciena (NYSE: CIEN) stock has risen significantly 46% in the past three months. We wonder if and what role company financials are playing in this price change, because a company’s long-term fundamentals usually dictate market outcomes. In this article, we have decided to focus on Ciena’s ROE.

ROE or return on equity is a useful tool to assess how effectively a company can generate the returns on investment it has received from its shareholders. Simply put, it is used to assess a company’s profitability against its equity.

See our latest review for Ciena

How to calculate return on equity?

ROE can be calculated using the formula:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, Ciena’s ROE is:

17% = US $ 500 million ÷ US $ 3.0 billion (based on the last twelve months to October 2021).

The “return” is the amount earned after tax over the past twelve months. Another way of thinking is that for every dollar of equity, the company was able to make $ 0.17 in profit.

Why is ROE important for profit growth?

So far, we’ve learned that ROE is a measure of a company’s profitability. Based on how much of those profits the company reinvests or “withholds” and its efficiency, we are then able to assess a company’s profit growth potential. Assuming everything else remains the same, the higher the ROE and profit retention, the higher the growth rate of a business compared to businesses that don’t necessarily have these characteristics.

Ciena profit growth and 17% ROE

For starters, Ciena’s ROE seems acceptable. Additionally, the company’s ROE is similar to the industry average of 17%. Despite the modest returns, Ciena’s five-year net income growth was quite weak, averaging only 2.4%. We believe that low growth, when returns are moderate, could be the result of certain circumstances such as low earnings retention or misallocation of capital.

Then, comparing with the industry’s net income growth, we found that Ciena’s reported growth was 10% lower than the industry’s growth in the same period, which we don’t like. see.

NYSE: CIEN Past Profit Growth December 26, 2021

Profit growth is a huge factor in the valuation of stocks. It is important for an investor to know whether the market has factored in the expected growth (or decline) in company earnings. This then helps them determine whether the stock is set for a bright or dark future. Is CIEN valued enough? This intrinsic business value infographic has everything you need to know.

Is Ciena using its profits effectively?

Ciena does not pay any dividends, which means that it keeps all of its profits. However, there has been very little profit growth to show for this. So there could be another explanation for this. For example, the business of the company can deteriorate.

Summary

All in all, it looks like Ciena has some positive aspects for her business. However, given the high ROE and high profit retention, we would expect the company to show strong profit growth, but this is not the case here. This suggests that there could be an external threat to the business, hampering its growth. That said, studying the latest analysts’ forecast, we found that while the company has seen past earnings growth, analysts expect future earnings to decline. Are the expectations of these analysts based on general industry expectations or on company fundamentals? Click here to go to our business analyst forecasts page.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.


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Is the recent performance of Shoe Carnival, Inc. (NASDAQ: SCVL) stock being driven by its attractive financial outlook? https://antochi.ro/is-the-recent-performance-of-shoe-carnival-inc-nasdaq-scvl-stock-being-driven-by-its-attractive-financial-outlook/ Fri, 24 Dec 2021 12:41:01 +0000 https://antochi.ro/is-the-recent-performance-of-shoe-carnival-inc-nasdaq-scvl-stock-being-driven-by-its-attractive-financial-outlook/ Shoe Carnival (NASDAQ: SCVL) shares have risen 17% in the past three months. Since the market typically pays for a company’s long-term fundamentals, we decided to study the company’s KPIs to see if they could influence the market. In particular, we’ll be paying special attention to Shoe Carnival’s ROE today. ROE or return on equity […]]]>

Shoe Carnival (NASDAQ: SCVL) shares have risen 17% in the past three months. Since the market typically pays for a company’s long-term fundamentals, we decided to study the company’s KPIs to see if they could influence the market. In particular, we’ll be paying special attention to Shoe Carnival’s ROE today.

ROE or return on equity is a useful tool to assess how effectively a company can generate the returns on investment it has received from its shareholders. In other words, it is a profitability ratio that measures the rate of return on capital contributed by the shareholders of the company.

See our latest analysis for the shoe carnival

How to calculate return on equity?

Return on equity can be calculated using the formula:

Return on equity = Net income (from continuing operations) ÷ Equity

So, based on the above formula, the ROE of the Shoe Carnival is:

33% = US $ 142 million ÷ US $ 433 million (based on the last twelve months to October 2021).

The “return” is the income the business has earned over the past year. This means that for every dollar in shareholders’ equity, the company generated $ 0.33 in profit.

What is the relationship between ROE and profit growth?

So far, we’ve learned that ROE measures how efficiently a business generates profits. We now need to assess the profits that the business is reinvesting or “withholding” for future growth, which then gives us an idea of ​​the growth potential of the business. Assuming everything else remains the same, the higher the ROE and profit retention, the higher the growth rate of a business compared to businesses that don’t necessarily have these characteristics.

A side-by-side comparison of Shoe Carnival’s 33% profit growth and ROE

For starters, Shoe Carnival has a pretty high ROE, which is interesting. Even compared to the industry average of 31%, the company’s ROE is pretty decent. Given the circumstances, the significant 30% net income growth observed by Shoe Carnival over the past five years is not surprising.

We then compared Shoe Carnival’s net income growth with the industry and we are happy to see that the company’s growth number is higher compared to the industry which has an 18% growth rate at during the same period.

NasdaqGS: SCVL Past profit growth on December 24, 2021

Profit growth is an important metric to consider when valuing a stock. What investors next need to determine is whether the expected earnings growth, or lack thereof, is already built into the share price. This then helps them determine whether the stock is set for a bright or dark future. A good indicator of expected earnings growth is the P / E ratio which determines the price the market is willing to pay for a stock based on its earnings outlook. So, you might want to check if Shoe Carnival is trading high P / E or low P / E, relative to its industry.

Is the Shoe Carnival effectively reinvesting its profits?

Shoe Carnival has a very low three-year median payout rate of 12%, which means it has the remaining 88% to reinvest in its business. So it appears that management is reinvesting the profits massively to grow their business, which is reflected in their profit growth figure.

Additionally, Shoe Carnival has been paying dividends for at least ten years or more. This shows that the company is committed to sharing the profits with its shareholders.

Summary

Overall, we are quite happy with the performance of Shoe Carnival. In particular, we like the fact that the company is reinvesting heavily in its business, and at a high rate of return. Unsurprisingly, this led to impressive profit growth.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.


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Buy These 5 Low Leverage Stocks to Protect Your Investments – December 22, 2021 https://antochi.ro/buy-these-5-low-leverage-stocks-to-protect-your-investments-december-22-2021/ Wed, 22 Dec 2021 13:33:54 +0000 https://antochi.ro/buy-these-5-low-leverage-stocks-to-protect-your-investments-december-22-2021/ Investors often opt for stocks with a solid growth history, but lack their leverage, which can be detrimental to their future growth if it is exorbitant. So if safe investing is your goal then go for low leverage stocks like Boise Cascade (Quick quote BCCBcc – Free report), Phototronic (PLAB quick quotePLAB – Free report), […]]]>

Investors often opt for stocks with a solid growth history, but lack their leverage, which can be detrimental to their future growth if it is exorbitant. So if safe investing is your goal then go for low leverage stocks like Boise Cascade (Bcc Free report), Phototronic (PLAB Free report), House street (HMST Free report), DAQO New Energy (QD Free report) and EPAM systems (EPAM Free report).

For those unfamiliar with the term, leverage refers to the use of exogenous funds by companies to carry out and grow their operations. Now companies can obtain these exogenous funds either through equity financing or debt financing.

Statistically, debt financing is preferred over equity capital because of its easy and cheap availability.

However, debt financing has its share of drawbacks. In particular, it is only desirable as long as it successfully generates a rate of return greater than the interest rate. So, to avoid huge losses in your portfolio, you should always avoid companies that resort to exorbitant debt financing.

Therefore, the crux of safe investing lies in choosing a company that is not overburdened with debt, as debt-free stocks are almost impossible to find.

To identify these stocks, historically several leverage ratios have been developed to measure the amount of debt of a company and the debt ratio is one of the most common ratios.

Debt / Equity Analysis

Debt ratio = Total liabilities / Equity

This measure is a liquidity ratio that indicates the amount of financial risk borne by a business. A business with a lower debt ratio shows improved creditworthiness for a business.

With the entire third quarter earnings season behind us, investors should watch out for stocks that have shown strong earnings growth in the recent past. But if a stock has a high debt ratio, during an economic downturn, its so-called booming earnings image could turn into a nightmare.

The winning strategy

Considering the aforementioned factors, it is prudent to choose stocks with a low leverage ratio to ensure stable returns.

However, an investment strategy based solely on the debt ratio might not achieve the desired result. To choose stocks that have the potential to provide you with stable returns, we have broadened our selection criteria to include other factors.

Here are the other parameters:

Debt / Equity below the X-Industry median: Equities less indebted than their peers in the sector.

Current price greater than or equal to 10: Stocks should trade at a minimum of $ 10 or more.

Average volume over 20 days greater than or equal to 50,000: A substantial trading volume ensures that the stock is easily tradable.

Percentage change in F (0) / F (-1) BPA greater than the X-Industry median: Profit growth adds to optimism, leading to an appreciation in the price of a stock.

VGM score of A or B: Our research shows that stocks with a VGM score of A or B, when combined with a Zacks # 1 (strong buy) or 2 (buy), offer the best upside potential.

Estimated EPS growth over one year F (1) / F (0) greater than 5: This shows earnings growth expectations

Zacks Rank # 1 or 2: Regardless of market conditions, stocks with a Zacks # 1 (strong buy) or 2 (buy) rank have a proven history of success.

Excluding stocks that have a negative or zero debt ratio, here we present our five picks from the 29 stocks that managed to make it to the screen.

Boise Cascade: It operates as a manufacturer of wood products and distributor of building materials, primarily in the United States and Canada. The company manufactures engineered wood products, plywood, lumber and particle board, and distributes wood products. BCC recently announced the construction of a 10,000 square foot warehouse in Ohio, which will expand its distribution network in the United States.

Boise Cascade has achieved a surprise profit of 45.46%, on average, over the past four quarters and currently sports a Zacks Rank # 1. Its long-term profit growth rate is set at 2.3%.

Phototronic: It is one of the world’s leading photomask manufacturers, providing the base for manufacturing mobile devices, PCs, televisions, displays and a host of other state-of-the-art products. Last December, PLAB released its full year 2021 results, in which its revenue reflects solid 9% year-over-year growth.

Photronics currently carries a Zacks Rank # 1. The company has achieved a surprise earnings of 12.55% on average over the past four quarters. FY2022 profit estimates show a 46.1% improvement over reported FY2021 profits.

House street: It is a diversified financial services company, dedicated to real estate lending, offering deposit and investment products, cash management services, single family loans and commercial loans. HMST recently announced that its commercial banking division is expanding its commercial services to Honolulu, Hawaii.

HomeStreet posted a four-quarter profit surprise of 22.48%, on average, and carries a Zacks rank of 2. Its 2021 profit estimate implies a year-over-year improvement of 53.6%. You can see The full list of today’s Zacks # 1 Rank stocks here.

DAQO New Energy: It is engaged in the manufacture and sale of high quality polysilicon to manufacturers of photovoltaic products. The polysilicon is then processed into ingots, wafers, cells and modules for solar energy solutions. DAQO New Energy’s highly efficient and technically advanced manufacturing plant in Xinjiang, China currently has an annual polysilicon production capacity of 70,000 metric tons.

Currently, DAQO New Energy has a Zacks ranking of 1. It generated a profit surprise of 4.86% on average over the four quarters. Its profit estimate for 2021 suggests a year-over-year improvement of 615.7%.

EPAM systems: It is well known for its software engineering and computer consulting services. Last December, EPAM Systems acquired Optiva Media, a niche professional services company that provides product and digital development services to leading media companies.

EPAM Systems currently holds a Zacks Rank # 2 and delivered a profit surprise of 7.21% on average over the four quarters. His estimate of the long-term profit growth rate is set at 28%.

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Disclosure: Officers, directors and / or employees of Zacks Investment Research may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document. An affiliated investment advisory firm may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document.

Disclosure: Information on the performance of Zacks’ portfolios and strategies can be found at: https://www.zacks.com/performance.


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A lesson of deep value with Luby’s https://antochi.ro/a-lesson-of-deep-value-with-lubys/ Mon, 20 Dec 2021 16:33:51 +0000 https://antochi.ro/a-lesson-of-deep-value-with-lubys/ I’ve been following Luby’s (NYSE: LUB) in one way or another for the past decade or so. I looked at the stock, waiting a while to buy, but that moment never came. The reason I watch the business is simple. It always seemed cheap. Today, this is still the case. At the time of writing, […]]]>

I’ve been following Luby’s (NYSE: LUB) in one way or another for the past decade or so. I looked at the stock, waiting a while to buy, but that moment never came.

The reason I watch the business is simple. It always seemed cheap. Today, this is still the case. At the time of writing, the stock is trading at a price to book ratio of 0.7. It is not possible to analyze the earnings or cash flow multiples of the group because it has not generated any cash flow or positive earnings for more than five years. Still, if you just look at the book value of the stock, it looks cheap.

Being cheap isn’t the only reason I’m watching the business. Whenever I’ve delved into his numbers and earnings conference calls, it always seems like the company is on the verge of a breakthrough. Management is always optimistic that changes are happening, growth is being felt and consumers are coming back. Yet the turnaround never happened, and there are several valuable lessons here.

Lessons of deep value

The biggest problem over the past two years is the company’s lack of value creation. In saying this, not only did it not create value, the company destroyed it.

Since 2015, equity has grown from $ 175 million to $ 74 million (end of 2020). There is no point in buying a stock for less than the book value if the book value continues to decline. The valuation may improve, but shareholders will still have a low return if the book value has fallen.

The other lesson I learned from this scenario is about the downsides of being an absent investor. I cannot claim to be an experienced restaurant investor. I can’t even really claim to have any experience in the restaurant industry. This held me back when analyzing Luby’s outlook. This meant that I was still too dependent on management analysis. I had no direct experience of the issues and headwinds they were trying to deal with, nor did I have direct knowledge of the experiences they provided to other consumers.

It’s all well and good for the management of a company to say that they are bringing consumers back to restaurants – they are not going to say the opposite. Investors very rarely receive a candid analysis of the business environment. More often than not, it is a positive image painted by management to provide the best prospects. The numbers are not designed to be misleading, but the picture is sometimes presented in the most optimistic light rather than a balanced projection.

Liquidation event

However, there is a twist in this story. At the end of November, investors voted to dissolve and liquidate the company. The move was supported by its major shareholders, including Christopher Pappas, who has been President and CEO since March 2001 and controls 18.4% of the total shares outstanding. Harris Pappas, who was the COO until 2011, controls 17.9% of the shares.

At the end of 2020, Luby’s financial statements placed the company’s book value per share at $ 2.40. According to the company’s latest update on the liquidation process, it expects to make $ 5 per share from the liquidation of assets this year. Sales of assets have achieved much more than the initial figures expected.

The last time the stock traded above $ 5 was in 2013, so it will be a happy ending for long-suffering investors. In an age when massive debt is all too common, this is one of the few cases where shareholders will actually get something out of the liquidation.

For foreigners, this is a lesson in the difficulty of investing in value. Luby’s has looked cheap for years and would have remained cheap had it not been for the liquidation event. And even the liquidation event has some surprises in store. It turns out that the assets were worth more than double the value of the balance sheet.

This scenario shows how important it is for investors to have a good understanding of their target companies, and when looking for value investing opportunities in depth, focus on finding an event that will crystallize value.

This article first appeared on GuruFocus.


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Will the weakness in shares of United Company RUSAL, International Public Joint-Stock Company (HKG: 486) prove temporary given strong fundamentals? https://antochi.ro/will-the-weakness-in-shares-of-united-company-rusal-international-public-joint-stock-company-hkg-486-prove-temporary-given-strong-fundamentals/ Sun, 19 Dec 2021 01:58:11 +0000 https://antochi.ro/will-the-weakness-in-shares-of-united-company-rusal-international-public-joint-stock-company-hkg-486-prove-temporary-given-strong-fundamentals/ With its stock down 8.5% in the past month, it’s easy to overlook United Company RUSAL International (HKG: 486). However, a closer look at his strong finances might get you to think again. Since fundamentals usually determine long-term market outcomes, the business is worth considering. Specifically, we decided to study the ROE of United Company […]]]>

With its stock down 8.5% in the past month, it’s easy to overlook United Company RUSAL International (HKG: 486). However, a closer look at his strong finances might get you to think again. Since fundamentals usually determine long-term market outcomes, the business is worth considering. Specifically, we decided to study the ROE of United Company RUSAL International in this article.

Return on equity or ROE is an important factor for a shareholder to consider, as it tells them how efficiently their capital is being reinvested. In other words, it is a profitability ratio that measures the rate of return on capital contributed by the shareholders of the company.

Check out our latest review for United Company RUSAL International

How to calculate return on equity?

the return on equity formula is:

Return on equity = Net income (from continuing operations) ÷ Equity

Thus, based on the above formula, the ROE of United Company RUSAL International is:

31% = US $ 2.9 billion ÷ US $ 9.3 billion (based on the last twelve months to June 2021).

“Return” refers to a company’s profits over the past year. This means that for every HK $ 1 worth of equity, the company generated HK $ 0.31 in profit.

What is the relationship between ROE and profit growth?

We have already established that ROE is an effective indicator of profit generation for a company’s future profits. Based on the portion of its profits that the company chooses to reinvest or “keep”, we are then able to assess a company’s future ability to generate profits. Assuming everything else is equal, companies that have both a higher return on equity and higher profit retention are generally those that have a higher growth rate than companies that do not have the same characteristics.

A side-by-side comparison of profit growth and 31% ROE of United Company RUSAL International

First of all, we love that United Company RUSAL International has an impressive ROE. Second, a comparison to the industry-reported average ROE of 13% doesn’t go unnoticed for us either. It is probably because of this that United Company RUSAL International has been able to achieve a decent 8.5% net income growth over the past five years.

Then, comparing with the growth in net income of the industry, we found that the reported growth of United Company RUSAL International was lower than the industry growth of 23% during the same period, which did not is not something we like to see.

SEHK: 486 Past profit growth on December 19, 2021

Profit growth is an important metric to consider when valuing a stock. What investors next need to determine is whether the expected earnings growth, or lack thereof, is already built into the share price. This will help them determine whether the future of the stock looks bright or threatening. A good indicator of expected earnings growth is the P / E ratio which determines the price the market is willing to pay for a stock based on its earnings outlook. So, you might want to check whether United Company RUSAL International is trading high P / E or low P / E, relative to its industry.

Is United Company RUSAL International Efficiently Using Retained Earnings?

United Company RUSAL International does not currently pay any dividends, which essentially means that it has reinvested all of its profits back into the business. It certainly contributes to the decent profit growth figure we discussed above.

Conclusion

Overall, we think the performance of United Company RUSAL International has been quite good. In particular, we like the fact that the company is reinvesting heavily in its business, and at a high rate of return. As a result, its decent profit growth is not surprising. However, a study of the latest analysts’ forecasts shows that the company is likely to experience a slowdown in future earnings growth. Are the expectations of these analysts based on general industry expectations or on company fundamentals? Click here to go to our business analyst forecasts page.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.


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The third report of the reorganization advisor on the https://antochi.ro/the-third-report-of-the-reorganization-advisor-on-the/ Fri, 17 Dec 2021 07:00:00 +0000 https://antochi.ro/the-third-report-of-the-reorganization-advisor-on-the/ On June 19, 2020, Harju County Court approved AS Baltika’s reorganization plan (Baltic). The restructuring advisor must submit a report to the court and to the creditors concerned every six months. The first report was submitted in December 2020. The third report is published for all investors. Data and figures in the report refer to […]]]>

On June 19, 2020, Harju County Court approved AS Baltika’s reorganization plan (Baltic). The restructuring advisor must submit a report to the court and to the creditors concerned every six months. The first report was submitted in December 2020. The third report is published for all investors. Data and figures in the report refer to Baltika on an individual basis, not as a group, i.e. figures are not consolidated.

Due to the reorganization process, Baltika was able to focus and continue its corporate turnaround over the past year – moving to a single brand (Ivo Nikkolo), optimizing and drastically reducing all expenses of operating even further than what was previously stated. in the reorganization plan. The new in-store assortment and new business strategy also helped Baltika survive the negative impact of the second wave of Covid-19. Baltika confirms that she will certainly be able to complete the reorganization plan and handle the payment of all obligations according to plan, even sooner than expected if there will be no additional or negative business scenarios, including due to Covid- 19 have spread throughout the Baltic Sea.

Flavio Perini
Member of the Management Board, CEO

flavio.perini@baltikagroup.com

REPORT OF THE REORGANIZATION ADVISOR ON THE REALIZATION OF THE REORGANIZATION PLAN

The Harju County Court confirmed by decision of 19.06.2020 for the civil case 2-20-4688 the reorganization plan of AS Baltika (hereafter Baltic).

In accordance with § 50 of the Reorganization Act, the Baltika reorganization adviser submits to the court and to the creditors the third written report on the execution of the reorganization plan.

To verify the completion of the reorganization plan and assess the financial situation, the reorganization advisor used the audited accounts of Baltika at 12.31.2020 and the unaudited accounts as at October 31, 2021.

Realization of the reorganization plan

The claims of 30 creditors for a total amount of 12,206,649.74 euros were converted on the basis of the recovery plan. The complaints were transformed into two groups.

The total financial impact of the reduction in claims on the basis of the reorganization plan is 5,045,198 euros, which is recorded in other operating income in Baltika’s 2020 income statement.

Based on the reorganization plan, Baltika had to pay interest on Group I receivables and from June 2021 start payments of the principal amounts of Group I. Baltika fulfilled this obligation to Swedbank AS. Other Group I creditors have confirmed to the reorganization advisor that they do not require Baltika to pay according to the reorganization plan and agree to be paid later.

Based on the reorganization plan, principal payments of Group II receivables are due to start at the end of 2021. As of the date of this report, Baltika has not yet made any payments to Group II creditors, but the company has informed the reorganization advisor of his intention. to do so before December 31, 2021.

Baltika’s financial situation

In the first six months after the confirmation of the reorganization plan, Baltika’s financial situation was positively influenced both by the transformation of creditors’ claims and also by several substantial changes in Baltika’s operations, as a result of which , compared to the condition before the reorganization, Baltika’s gross profit from the sale of goods improved and various operating expenses decreased (including rental charges which fall under several operating expenses, the payroll).

The 2021 results are significantly affected by restrictions caused by the Covid-19 pandemic and store closures in Lithuania, Latvia and Estonia. The sharp drop in revenue from December 2020 (stores were completely closed in Latvia and Lithuania from December 2020 and Estonia from March 2021, and reopened to visitors in May 2021 in Lithuania and Estonia and June 2021 in Latvia), which was partly offset by an increase in e-channel revenue, meant that in 2021 Baltika’s actual revenue, gross margin and operating profit were significantly lower than the respective figures presented in the prognosis of the reorganization plan.

The table below contains the forecast for the 2020 income statement presented in the Baltika reorganization plan, the actual result for 2020, the figures for 10 months of the forecast (01.01.2021 until 30.10.2021) and the actual result and declaration of loss for ten months of 2021.

Thousands of euros 12-month forecast 2020 in reorganization plan Actual 12 months 2020 10-month forecast 2021 Actual 10 months 2021
Income 12,300 9,891 16 125 6 349
Total income 12,300 9,891 16 125 6 349
Cost of goods sold 11,302 8,578 11,030 4 956
Gross profit 998 1313 5,095 1,393
Gross margin 8.1% 13.3% 31.6% 21.9%
Various operating expenses 2,844 2 140 2,029 1,304
Pay 3,533 2,576 1,893 1,734
Amortization and depreciation 137 82 137 95
Other operating expenses (-) / income (+) 3 895 3,747 -119 116
Operating result (-loss) -1 622 262 1,154 -1 623

The comparison shows that Baltika’s actual operating profit for 2020 was much better than the prognosis made when drawing up the reorganization plan, but the actual operating profit for the ten months of 2021 is considerably worse than the prognosis. done during the development of the reorganization plan. The actual operating profit for the ten months of 2021 is 2,777 thousand euros lower than the forecast, while for the first four months of 2021 the result is lower by 2,849 thousand euros, which shows that at performance has improved somewhat over the past six months. Looking at the cumulative income statement over 22 months or the period from 01.01.2020 to 31.10.2021, which reflects both the impact of the measures in the reorganization plan and the impact of the closure of stores due to Covid- 19, it can be seen that cumulatively the combined figures of actual turnover and operating profit are lower than those forecast in the reorganization plan (see table below).

Thousands of euros Prognosis in the reorganization plan for
22 months until 31.10.2021
Real for 22 months until 10/31/2021
Income 28,425 16 240
Total income 28,425 16 240
Cost of goods sold 22 332 13,534
Gross profit 6,093 2 706
Gross margin 21.4% 16.7%
Various operating expenses 4 874 3,443
Pay 5 427 4 310
Amortization and depreciation 274 177
Other operating expenses (-) / income (+) 4,014 3,863
Operating result (-loss) -468 -1 361

The comparison between the actual result over 22 months and the forecast made during the preparation of the reorganization plan shows that the actual various operating costs and personnel costs are lower than the forecast. Therefore, the operating profit deficit can be fully explained by the decrease in gross margin, which in turn is caused by the circumstances that started in December 2020 and continued throughout the first half of 2021 ( stores closed).

For the realization of the reorganization plan, it is important that the future financial results of Baltika, taking into account the temporary deterioration in the first half of 2021, are such as to allow the reimbursement of the creditors’ claims in accordance with the terms of the reorganization plan. According to the forecast made by the management of Baltika through the end of 2021 and into 2022 (presented to the reorganization advisor in December 2021), and assuming normalized retail activities, the financial results and cash flow of Baltika would be sufficient to this end.

The number of Baltika employees increased from 112 at the end of March 2020 to 58 on 31.10.2020 and 42 on 31.10.2021.

Baltika’s shareholders’ equity amounted to 948 thousand euros at October 31, 2021.

As of October 31, 2021, Baltika had overdue debts in the amount of 16 thousand euros which have been paid as of the date of this report, which shows that Baltika has been able to meet its current debts.

Based on the above, the reorganization advisor is of the opinion that following the confirmation of the reorganization plan and the implementation of the reorganization measures, the financial situation of Baltika has improved. Baltika followed in its operations the reorganization plan, due to which the realization of the reorganization plan, including the payment of the claims of creditors within the period foreseen in the reorganization plan, is always realistic.

The reorganization advisor confirms that he sent this report in addition to the court also to all creditors who are affected by the reorganization.

Tallinn, 16.12.2021.a.
Artur costumes
Aktsiaselts Baltika reorganization advisor
Digitally signed


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