American Story

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ARA -- USA Stock  

USD 11.48  0.04  0.35%

American Renal Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 1.12 Billion. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 59.3 M, whereas Net Income Per Employee is forecasted to decline to (2.8 K). This short post will go over American Renal as a possible investment alternative for your portfolios. We will provide a perspective on American Renal future direction.
Published over two weeks ago
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Is American Renal (NYSE:ARA) outlook positive for November 2020?
American Renal holds a performance score of 9 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of 0.6938, which signifies possible diversification benefits within a given portfolio. Let's try to break down what American's beta means in this case. As returns on the market increase, American Renal returns are expected to increase less than the market. However, during the bear market, the loss on holding American Renal will be expected to be smaller as well. Although it is vital to follow American Renal Assoc historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. Our philosophy in foreseeing future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if American Renal Associates expected return of 1.13 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use American Renal treynor ratio, expected short fall, and the relationship between the jensen alpha and potential upside to analyze future returns on American Renal.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as American Renal Assoc. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for American Renal

How important is American Renal's Liquidity

American Renal financial leverage refers to using borrowed capital as a funding source to finance American Renal Associates ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. American Renal 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. Please check the breakdown between American Renal's total debt and its cash.

How American utilizes its cash?

To perform a cash flow analysis of American Renal, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash American Renal is receiving and how much cash it distributes out in a given period. The American Renal cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. American Renal Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 38.82 Million

Payment of 2588 shares by Don Williamson of American Renal subject to Rule 16b-3

Legal trades by American Renal insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
American insider trading alert for payment of common stock by Don Williamson, EVP Chief Operating Officer, on 21st of September 2020. This event was filed by American Renal Associates with SEC on 2020-09-21. Statement of changes in beneficial ownership - SEC Form 4. Don Williamson currently serves as chief operating officer, executive vice president of American Renal Assoc [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for American Renal

The current price rise of American Renal Assoc could raise concerns from investors as the firm it trading at a share price of 11.52 on slow start in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in November. The stock standard deviation of daily returns for 30 days investing horizon is currently 8.65. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the American Renal partners.

Returns Breakdown

Return on Investment16.12
Return on Assets(0.0195)
Return on Equity0.28
Return Capital0.0123
Return on Sales0.0154

Our perspective of the current American Renal rise

American Renal current downside variance builds up over 6.64. As of the 3rd of October, American Renal shows the risk adjusted performance of 0.0834, and Mean Deviation of 2.15. American Renal Assoc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for American Renal Associates, which can be compared to its rivals. Please confirm American Renal Assoc downside deviation, treynor ratio, expected short fall, as well as the relationship between the variance and potential upside to decide if American Renal Assoc is priced correctly, providing market reflects its regular price of 11.52 per share. Given that American Renal has jensen alpha of 0.1488, we suggest you to validate American Renal Associates's prevailing market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Whereas other companies within the diagnostics & research industry are still a little expensive, even after the recent corrections, American Renal may offer a potential longer-term growth to investors. To conclude, as of the 3rd of October 2020, our present 30 days buy vs. sell advice on the company is Hold. We believe American Renal is currently overvalued with below average odds of financial turmoil for the next two years.

About Contributor

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 American Renal Associates. Please refer to our Terms of Use for any information regarding our disclosure principles.

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