Toromont Industries Ltd. (TSX:TIH)’s Cash Flow Movement Hits -0.77938

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.  Toromont Industries Ltd. (TSX:TIH)  currently has one year cash flow growth of -0.77938 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.

Investing in the stock market can be highly challenging. Most investors have the same intentions of trying to maximize profits from investment capital. Realizing that there are many unknowns in the market, investors will need to make sure that they are constantly staying on top of the current economic scene. As most investors know, the market can see big shifts on a daily basis. Being able to deal with the constant ups and downs can be a huge asset to the individual investor’s psyche. Because stock market investing can get highly emotional at times, investors often have to find a way to keep a clear head and make the best possible decisions even when the market terrain gets rocky. Many successful investors have created a plan that they have been able to adhere to through the thick and thin. 

In taking a look at some other key growth stats we note that the one year Growth EBIT ratio stands at 0.28726 for Toromont Industries Ltd. (TSX:TIH) and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at 0.27844 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 -0.67256. The one year growth in Net Profit after Tax is 0.30633 and lastly sales growth was 0.16401.

Toromont Industries Ltd. (TSX:TIH) has a present suggested portfolio ownership rate of 0.06840 (as a decimal) ownership. Target weight is the volatility adjusted recommended position size for a stock in your portfolio. The maximum target weight is 7% for any given holding. The indicator is based off of the 100 day volatility reading and calculates a target weight accordingly. The more recent volatility of a stock, the lower the target weight will be. The 3-month volatility stands at 14.559100 (decimal). This is the normal returns and standard deviation of the stock price over three months annualized.

Diving down into some additional near-term indicators we see that the Capex to PPE ratio stands at 0.068762 for Toromont Industries Ltd. (TSX:TIH). 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.

Investing in the stock market can be highly challenging. Most investors have the same intentions of trying to maximize profits from investment capital. Realizing that there are many unknowns in the market, investors will need to make sure that they are constantly staying on top of the current economic scene. As most investors know, the market can see big shifts on a daily basis. Being able to deal with the constant ups and downs can be a huge asset to the individual investor’s psyche. Because stock market investing can get highly emotional at times, investors often have to find a way to keep a clear head and make the best possible decisions even when the market terrain gets rocky. Many successful investors have created a plan that they have been able to adhere to through the thick and thin. 

Being able to keep the emotions in check and stay focused on the pertinent data, may help the stock portfolio thrive into the future.In looking at some key ratios we note that the Piotroski F Score stands at 4 (1 to 10 scale) and the ERP5 rank holds steady at 5242. The Q.I. Value of Toromont Industries Ltd. (TSX:TIH) currently reads 28.00000 on the Quant scale. The Free Cash Flow score of 0.048722 is also swinging some momentum at investors. The Canada based firm is currently valued at 4290.

Some other notable ratios include the Accrual Ratio of 0.175233, the Altman Z score of 3.619767, a Montier C-Score of 1.00000 and a Value Composite rank of 47.

It is no secret that most investors have the best of intentions when diving into the equity markets. Making sound, informed decisions can help the investor make the most progress when dealing with the markets. Often times, investors may think they have everything in order, but they still come out on the losing end. Investors may need to figure out ways to keep emotion out of stock picking. Sometimes trading on emotions can lead to poor results. Making hasty decisions and not paying attention to the correct data can lead to poor performing portfolios in the long-term.

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. Toromont Industries Ltd. (TSX:TIH)’s Cash Flow to Capex stands at 1.714628.

Investors looking to chalk up healthy returns in the stock market may need to pay attention to avoid common pitfalls. When the good times are rolling, investors may be highly tempted to move a lot of money into certain stocks that have been churning out returns. One problem with this approach is that a stock that has been hot for a few months might not be hot over the next three months. It is always important to remember that past performance does not guarantee future results. Getting into a stock too late may leave the average investor pounding the table as a former winner turns into a current loser. 

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