Anything left for Umicore S in March?
 | By Rifka Kats | Macroaxis Story |
This piece will digest Umicore S. I will evaluate why we are still optimistic in anticipation of a recovery. Umicore S A elasticity to market is barely shadows market. The returns on investing in Umicore S and the market returns of the last few months appear uncorrelated. Sound fundamental drivers of the firm may indicate signs of shorter-term price drift for shareholders of the firm. We consider Umicore S not too volatile. Umicore S A owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.0512 which indicates the firm had 0.0512% of return per unit of risk over the last 1 month. Our philosophy towards measuring 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-one technical indicators for Umicore S A which you can use to evaluate future volatility of the company. Please validate Umicore S Semi Deviation of 1.7, Coefficient Of Variation of 3293.95 and Risk Adjusted Performance of 0.0575 to confirm if risk estimate we provide are consistent with the epected return of 0.1074%.
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Reviewed by Ellen Johnson
Umicore S has beta of 0.93. Umicore S returns are very sensitive to returns on the market. As market goes up or down, Umicore S is expected to follow. The firm dividends can provide a clue to current valuation of the stock. The entity one year expected dividend income is about $0.15 per share. Let me now analyze Umicore S Return On Equity. Based on latest financial disclosure Umicore S A has Return On Equity of 12.61%. This is much higher than that of the Industrials sector, and significantly higher than that of Waste Management industry, The Return On Equity for all stocks is notably lower than Umicore S A.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Umicore SA. In general, sophisticated investors focus on analyzing Umicore SA stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Umicore SA's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Umicore SA's intrinsic value. In addition to deriving basic predictive indicators for Umicore SA, many experienced traders also check how macroeconomic factors affect Umicore SA price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Umicore SA's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Umicore SA's Liquidity
Umicore SA financial leverage refers to using borrowed capital as a funding source to finance Umicore SA ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Umicore SA 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 Umicore SA'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 Umicore SA'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 Umicore SA's total debt and its cash.
Is Umicore SA valued objectively by the market?
The modest gains experienced by current holders of Umicore S A has created some momentum for investors as it was traded today as low as 42.45 and as high as 42.45 per share. The company management have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in January. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.0957. The current volatility is consistent with the ongoing market swings in January 2019 as well as with Umicore S A unsystematic, company specific events. Umicore S maintains z score of 7.8. Umicore S is trading at 42.45. This is 3.16 percent up. Opened at 42.45. All things considered, I belive Umicore S is currently fairly valued. It Barely shadows market and projects very low chance of financial distress in the next two years. Our ongoing 'Buy vs. Hold vs. Sell' recommendation on the firm is Hold.
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