| 2014 | 2015 | 2018 | 2019 (projected) | Consolidated Income | 686,000,000 | 728,000,000 | 655,200,000 | 558,473,684 | Direct Expenses | 3,630,000,000 | 3,642,000,000 | 4,381,200,000 | 3,830,263,158 |
Rockwell Collins is getting wobbly
 | By Vlad Skutelnik | Macroaxis Story |
Today's write-up is for all stakeholders who are seriously contemplating on exiting a position in Rockwell Collins. I will summarize the rationale of why Rockwell Collins stakeholders should not be insulted by the new pull down. The company current daily volatility is 4.11 percent, with beta of 0.41 and alpha of -1.02 over Russell 2000 . Rockwell Collins holds recent Real Value of 75.05 per share. The prevailing price of the company is 55.0. At this time the company appears to be undervalued. This module determines value of Rockwell Collins from analyzing the company fundamentals such as Shares Outstanding of 164.37 M, Return On Equity of 32.35 and Operating Margin of 21.08 as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support investing in undervalued entities and to dispose of overvalued entities since at some point stocks prices and their ongoing real values will merge together.
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Reviewed by Raphi Shpitalnik
Rockwell Collins has 7.18 B in debt with debt to equity (D/E) ratio of 105.6 . This implies that the stock may be unable to create cash to meet all of its financial commitments. This firm dividends can provide a clue to current valuation of the stock. Rockwell Collins one year expected dividend income is about 0.44 per share. The company has Net Profit Margin of 13.62 % which may imply that it executes well on its competitive polices and has a good control over its expenditures and variable costs. This is very large. In the same way, it shows Net Operating Margin of 21.08 % which entails that for every 100 dollars of revenue it generated 0.21 of operating income.
How important is Rockwell Collins's Liquidity
Rockwell Collins financial leverage refers to using borrowed capital as a funding source to finance Rockwell Collins ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Rockwell Collins 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 Rockwell Collins' 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 Rockwell Collins' 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 Rockwell Collins's total debt and its cash.
A Deeper look at Rockwell
The big decline in price over the last few months for Rockwell Collins could raise concerns from investors as the company closed today at a share price of 55.0 on 0 in volume. The company executives failed to add value to investors and positioning the company components to exploit market volatility in October. However, diversifying your holdings with Rockwell Collins or any similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 4.1129. This high volatility is attributed to the latest market swings and not so good earning reports for some of the Rockwell Collins partners. Rockwell Collins is selling for 55.00. Today highest was 55.0. Rockwell Collins Payout Ratio is considerably stable at the moment. Also, Rockwell Collins Receivables Turnover is considerably stable at the moment.
Taking everything into account, we see that Rockwell Collins Moves slightly opposite to market. The business is undervalued with below average chance of bankruptcy within the next 24 months. Our final buy or sell advice on the business is Hold.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Rockwell Collins. Please refer to our Terms of Use for any information regarding our disclosure principles.