Aker ASA (OB:AKER)’s Cash Flow Moves -0.37892 Placing Shares Under the Lens

Investors looking to take advantage of cash heavy shares, they might look first to the cash flow of a company, and how fast that is growing.  Aker ASA (OB:AKER)  currently has one year cash flow growth of -0.37892 1yr Growth Cash Flow = 1 year percentage growth of a company’s Cash Flow from operations (Cash Flow Statement). Analyzing cash flow can alert shareholders to potential dangers that may result from a lack of liquidity. Looking at the positive or negative movement of a company’s reported free cash flow will help determine if it has the necessary funds to finance capital expenditures and keep paying dividends.

Individual investors often have a lot to deal with when surveying the stock market landscape. Choosing stocks based on recent performance may not work out as well as planned. Stocks that were winners last year, last month, or even last week, may not be winners next week, next month, or next year. Digging into the fundamentals can help the investor see what stocks are set up for future success. Taking multiple approaches when viewing a certain security may help the investor put the puzzle together and see the bigger picture. Staying current on economic data can also help the investor obtain a broader sense of what is driving present market conditions.
Aker ASA (OB:AKER) of the Food Producers sector closed the recent session at 448.000000 with a market value of $3657768.

Taking look at some key returns data we can note the following:

Aker ASA (OB:AKER) has Return on Invested Capital of 0.021996, with a 5-year average of 0.051775 and an ROIC quality score of 4.388025. 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 0.287165 for Aker ASA (OB:AKER).  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. Aker ASA (OB:AKER)’s Cash Flow to Capex stands at 0.377163.

When it comes to setting up a winning stock portfolio, many investors will select a wide variety of securities in order to minimize risk. This may include choosing a mix of small cap, large cap, value, and growth stocks. Many investors will also include foreign stocks in the portfolio as well. Once the portfolio is set up, investors may realize that they need to rebalance from time to time. Investors may find it extremely helpful to stay up to date and know exactly what holdings they have. When hard earned investing dollars are at stake, individuals may be best served to monitor the portfolio closely at all times. Putting in the extra time and effort to acquire stock market knowledge may help the investor become better prepared for the long haul.  

Near-Term Growth Drilldown

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 -0.37892 for Aker ASA (OB:AKER).  The one year Growth EBIT ratio stands at -0.59610 and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at -0.38412 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 0.21996.  The one year growth in Net Profit after Tax is -1.21122 and lastly sales growth was 0.08044.

In looking at some Debt ratios, Aker ASA (OB:AKER) has a debt to equity ratio of 2.25155 and a Free Cash Flow to Debt ratio of -0.095054.  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 23.19547.  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.  Aker ASA’s ND to MV current stands at 0.984234. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

When conducting stock analysis, investors have a wide array of various classifications to choose from. Growth stocks generally have the potential to produce above average profit growth and revenues. These types of stocks tend to expand quicker than the economy as a whole. Investors also have the option of adding cyclical stocks to the portfolio. Cyclicals are generally companies whose earnings and sales are highly correlated with that of the overall economy. When the economy is doing well, cyclical stocks may be more in favor. Investors may decide to go in another direction when the economy is dragging. When an economic downturn is underway, investors may choose to select defensive stocks. These types of stocks generally stand up well during down periods based on their insulation from the business cycle. Investors also have the option of purchasing foreign stocks to help add some diversity to the portfolio. 

50/200 Simple Moving Average Cross

Aker ASA (OB:AKER) has a 0.85706 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.

Once the investor has calculated risk and decided on a suitable time horizon, they may be wondering how to best start doing research on particular stocks and the market in general. Working from the top and filtering down, investors may start by studying the overall economy, specific industries, and other markets. Economic trends can have an influence on company earnings, and it is generally beneficial to be aware of what is going on locally and around the globe. Individual investors may decide that they want to start from the bottom and work their way up. This may involve studying specific stocks and looking for ones that are strong, cheap, and solidly performing on the earnings front. Some individuals will combine both methods with the goal of understanding all aspects that could possibly affect the stock market.

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