Fastenal Company currently holds roughly 321.8
M in cash with 1.06
B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.56.
Our advice module provides unbiased investment recommendation that can be used to complement current
average analyst sentiment on Fastenal Company. Our advice engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon.
Investing in Amg River, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Amg River along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Amg River's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Amg River. Your research has to be compared to or analyzed against Amg River's peers to derive any actionable benefits. When done correctly, Amg River's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Amg River Road.
Instrument Allocation
The asset allocation of funds such as Amg River usually varies among a different mix of asset classes. Balanced mutual funds invest not only in bonds, which focus primarily on income, and stocks, which aim for investment growth, but also keep some reserve in cash or even exotic instruments. Below we show the current asset allocation of Amg River Road
DetailsIs Amg River valued reasonably by the market?
We consider Fastenal very steady.
Fastenal secures Sharpe Ratio (or Efficiency) of 0.0292, which denotes the company had 0.0292% of return per unit of risk over the last 3 months. Our standpoint towards predicting the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-seven
technical indicators for Fastenal Company, which you can use to evaluate the future volatility of the firm. Please confirm Fastenal Coefficient Of Variation of 2333.43,
mean deviation of 0.7203, and Downside Deviation of 0.9553 to check if the risk estimate we provide is consistent with the expected return of 0.0311%.
Will Fastenal newest gain continue?
Coefficient of variation is down to 2333.43. It may call for a possible volatility drop. Fastenal Company has low volatility with Treynor Ratio of -1.57, Maximum Drawdown of 5.73 and kurtosis of 1.58. However, we advice all investors to further analyze Fastenal Company to make certain all market information is desiminated and is consistent with the current expectations about Fastenal upside potential. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Fastenal's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Fastenal's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Perspective on Fastenal
Whereas some other companies under the industrial distribution industry are still a bit expensive, Fastenal may offer a potential longer-term growth to private investors. With a relatively neutral outlook on the newest economy, it is better to hold off any trading of Fastenal as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Fastenal.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile 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 Amg River Road. Please refer to our
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