This firm's average rating is Buy from 4 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Atlantica Yield market sentiment investors' perception of the future value of Atlantica. Let us look at a few aspects of Atlantica technical analysis. The company has Net Profit Margin (PM) of
2.95 %, which suggests that even a small decline in it sales will erase profits and may result in a net loss, or a negative profit margin. This is typical in the industry. Likewise, it shows Net Operating Margin (NOM) of
70.84 %, which signifies that for every $100 of sales, it has a net operating income of 0.71.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Atlantica Sustainable Infrastructure. In general, sophisticated investors focus on analyzing Atlantica Sustainable stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Atlantica Sustainable's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Atlantica Sustainable's intrinsic value. In addition to deriving basic predictive indicators for Atlantica Sustainable, many experienced traders also check how macroeconomic factors affect Atlantica Sustainable price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Atlantica Sustainable'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 Atlantica Sustainable. Your research has to be compared to or analyzed against Atlantica Sustainable's peers to derive any actionable benefits. When done correctly, Atlantica Sustainable'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 Atlantica Sustainable.
How important is Atlantica Sustainable's Liquidity
Atlantica Sustainable
financial leverage refers to using borrowed capital as a funding source to finance Atlantica Sustainable Infrastructure ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Atlantica Sustainable 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 Atlantica Sustainable's 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 Atlantica Sustainable's 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 Atlantica Sustainable's total debt and its cash.
Atlantica Sustainable Gross Profit
Atlantica Sustainable Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Atlantica Sustainable previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Atlantica Sustainable Gross Profit growth over the last 10 years. Please check Atlantica Sustainable's
gross profit and other
fundamental indicators for more details.
Closer look at Atlantica Yield Standard Deviation
Atlantica Yield Plc has current Standard Deviation of 1.68. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.
Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.
Standard Deviation | = | SQRT(V) |
| = | 1.68 |
Let's now compare Atlantica Yield Standard Deviation to its closest peers:
| AY | 1.681673511836242 |
| NEP | 1.92 |
| AZRE | 2.92 |
| CWEN | 2.17 |
| ORA | 2.58 |
Some Atlantica technical indicators suggest relapse
The market risk adjusted performance is down to -1.2 as of today. Atlantica Yield Plc has relatively low volatility with skewness of 0.5 and kurtosis of 1.88. However, we advise all investors to independently investigate Atlantica Yield Plc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.
While some firms under the utilities—renewable industry are still a bit expensive, Atlantica Yield may offer a potential longer-term growth to investors. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Atlantica 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 Atlantica Yield.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Atlantica Sustainable Infrastructure. Please refer to our
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