ASM INTERNATIONAL Current Financial Leverage

ASMXF -  USA Stock  

USD 324.01  37.84  10.46%

ASM INTERNATIONAL's financial leverage is the degree to which the firm utilizes its fixed-income securities and uses equity to finance projects. Companies with high leverage are usually considered to be at financial risk. ASM INTERNATIONAL's financial risk is the risk to ASM INTERNATIONAL stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Please continue to the analysis of ASM INTERNATIONAL Fundamentals Over Time.

ASMXF Bonds 

 
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Given the importance of ASM INTERNATIONAL's capital structure, the first step in the capital decision process is for the management of ASM INTERNATIONAL to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of ASM INTERNATIONAL NV to issue bonds at a reasonable cost.

ASM INTERNATIONAL Financial Leverage Rating

ASM INTERNATIONAL NV bond ratings play a critical role in determining how much ASM INTERNATIONAL have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for ASM INTERNATIONAL's borrowing costs.
Overall Bond Rating
Not Rated
Average S&P Rating
N/A

ASM INTERNATIONAL Debt to Cash Allocation

As ASM INTERNATIONAL NV follows its natural business cycle, the capital allocation decisions will not magically go away. ASM INTERNATIONAL's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors. Many companies eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
The company has accumulated 12.51 M in total debt with debt to equity ratio (D/E) of 0.01, which may suggest the company is not taking enough advantage from borrowing. ASM INTERNATIONAL has a current ratio of 2.93, suggesting that it is liquid and has the ability to pay its financial obligations in time and when they become due.

ASM INTERNATIONAL Assets Financed by Debt

Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the ASM INTERNATIONAL's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of ASM INTERNATIONAL, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a an ASM INTERNATIONAL debt ratio should be compared their industry average or other competing firms.

Understaning ASM INTERNATIONAL Use of Financial Leverage

ASM INTERNATIONAL financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures ASM INTERNATIONAL's total debt position, including all of outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of ASM INTERNATIONAL assets, the company is considered highly leveraged. Understanding the composition and structure of overall ASM INTERNATIONAL debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it.
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ASM International NV, together with its subsidiaries, engages in the research, development, manufacture, marketing, and servicing of equipment and materials used to produce semiconductor devices. ASM International NV was founded in 1968 and is headquartered in Almere, the Netherlands. ASM INTERNATIONAL operates under Semiconductor Equipment Materials classification in the United States and is traded on OTC Exchange. It employs 2780 people.

ASM INTERNATIONAL Investors Sentiment

The influence of ASM INTERNATIONAL's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in ASMXF. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Current Sentiment - ASMXF

ASM INTERNATIONAL Investor Sentiment

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Pair Trading with ASM INTERNATIONAL

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if ASM INTERNATIONAL position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ASM INTERNATIONAL will appreciate offsetting losses from the drop in the long position's value.

ASM INTERNATIONAL Pair Correlation

Equities Pair Trading Analysis

Correlation analysis and pair trading evaluation for ASM INTERNATIONAL and Asml Holdings NY. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
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Please continue to the analysis of ASM INTERNATIONAL Fundamentals Over Time. Note that the ASM INTERNATIONAL information on this page should be used as a complementary analysis to other ASM INTERNATIONAL's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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When running ASM INTERNATIONAL price analysis, check to measure ASM INTERNATIONAL's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy ASM INTERNATIONAL is operating at the current time. Most of ASM INTERNATIONAL's value examination focuses on studying past and present price action to predict the probability of ASM INTERNATIONAL's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move ASM INTERNATIONAL's price. Additionally, you may evaluate how the addition of ASM INTERNATIONAL to your portfolios can decrease your overall portfolio volatility.
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The market value of ASM INTERNATIONAL is measured differently than its book value, which is the value of ASMXF that is recorded on the company's balance sheet. Investors also form their own opinion of ASM INTERNATIONAL's value that differs from its market value or its book value, called intrinsic value, which is ASM INTERNATIONAL's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because ASM INTERNATIONAL's market value can be influenced by many factors that don't directly affect ASM INTERNATIONAL underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between ASM INTERNATIONAL's value and its price as these two are different measures arrived at by different means. Investors typically determine ASM INTERNATIONAL value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ASM INTERNATIONAL's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.