National Western price boost is puzzling
 | By Rifka Kats | Macroaxis Story |
Today I will concentrate on National Western. I will evaluate why recent National Western price moves suggest a bounce in June. This firm Piotroski F Score is 4 - Ordinary. Given the investment horizon of 30 days, National Western is expected to generate 2.17 times more return on investment than the market. However, the company is 2.17 times more volatile than its market benchmark. It trades about 0.11 of its potential returns per unit of risk. The market is currently generating roughly 0.04 per unit of risk. We consider National Western very steady. National Western Life has Sharpe Ratio of 0.106 which conveys that the firm had 0.106% of return per unit of risk over the last 1 month. Our philosophy towards estimating volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for National Western which you can use to evaluate future volatility of the firm. Please verify National Western Life Group Mean Deviation of 0.9487, Downside Deviation of 1.02 and Risk Adjusted Performance of 0.0676 to check out if risk estimate we provide are consistent with the epected return of 0.1481%.
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Reviewed by Raphi Shpitalnik
NATL WESTERN LIFE currently holds roughly 91.94M in cash with 343.15M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 25.28. National Western dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.24 per share. Let me now analyze National Western Beta. In accordance with recently published financial statements National Western Life Group has Beta of 0.77. This is 6.1% lower than that of the Financial Services sector, and 30.0% lower than that of Insurance - Life industry, The Beta for all stocks is 613.33% lower than National Western Life.
How important is National Western's Liquidity
National Western financial leverage refers to using borrowed capital as a funding source to finance National Western Life ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. National Western financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to National Western's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of National Western's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between National Western's total debt and its cash.
National Western Correlation with Peers
Investors in National can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in National Western Life. Diversification will allow for the same portfolio return with reduced risk. The correlation table of National Western and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities National is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of National for more details
An Additional Perspective On National Western Life
The modest gains experienced by current holders of National Western Life may encourage investors to take a closer look at the firm as it closed today at a share price of 269.6 on 5243 in trading volume. The company executives have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in April. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.3963. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. National Western preserves 3.44m of shares outstanding. National Western is selling for under 274.01. That is 0.99 percent up. Opened at 274.01. National Western Net Income is nearly stable at the moment. National Western Dividend Yield is decreasing over the last 5 years. The prevalent value of National Western Dividend Yield is 0.001711. Additionally, National Western Income Tax Expense is nearly stable at the moment. To summarize, we believe that at this point National Western is undervalued with below average probability of distress within the next 2 years. Our ongoing buy/sell recommendation on the entity is Strong Buy.
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