Considering the 60-day investment horizon Polymet Mining is expected to under-perform the market. In addition to that, the company is 3.88 times more volatile than its market benchmark. It trades about -0.17 of its total potential returns per unit of risk. The Dow Jones Industrial is currently generating roughly 0.0 per unit of volatility. As many conservative investors are still indifferent towards recent market risk, it is prudent, from our point of view, to recap Polymet Mining's current volatility. We will focus on why some insiders are closely monitoring Polymet Mining's volatility. Polymet Mining's seemingly stabilizing volatility may still impact the value of the stock as we estimate Polymet Mining as currently overvalued. The real value, based on our calculations, is getting close to 1.42 per share.
The company has 205 K in debt with debt to equity (D/E) ratio of 0.21, which may show that Polymet Mining is not taking advantage of profits from borrowing. Polymet Mining Corp has a current ratio of 0.12, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Polymet Mining until it has trouble settling it off, either with new capital or with free cash flow. So, Polymet Mining's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Polymet Mining Corp sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Polymet to invest in growth at high rates of return. When we think about Polymet Mining's use of debt, we should always consider it together with cash and equity.
Volatility is a rate at which the price of Polymet Mining or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Polymet Mining may increase or decrease. In other words, similar to Polymet's beta indicator, it measures the risk of Polymet Mining and helps estimate the fluctuations that may happen in a short period of time. So if prices of Polymet Mining fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Polymet Mining's Liquidity
Polymet Mining financial leverage refers to using borrowed capital as a funding source to finance Polymet Mining Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Polymet Mining 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 Polymet Mining'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 Polymet Mining'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 Polymet Mining's total debt and its cash.
How is Polymet allocating its cash?
To perform a cash flow analysis of Polymet Mining, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Polymet Mining is receiving and how much cash it distributes out in a given period. The Polymet Mining cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
An Additional Perspective On Polymet Mining Corp
Reported Net Loss for the year was (34.09 M) with loss before taxes, overhead, and interest of (3.97 M).
Polymet Mining has 95 percent odds to go over USD1.53 this year
Recent jensen alpha indicator falls down to -0.5. Possible price boost?
Polymet Mining Corp exhibits very low volatility with skewness of 0.25 and kurtosis of 1.28. However, we advise investors to further study Polymet Mining Corp technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Polymet Mining's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Polymet Mining's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Although some other firms in the other industrial metals & mining industry are either recovering or due for a correction, Polymet Mining may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the recent economy, it is better to hold off any trading of Polymet as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Polymet Mining.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. View Profile
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