Returns Breakdown
| Return on Assets | (0.003723) | |
| Return on Equity | (0.0211) | |
| Return Capital | 0.0546 | |
| Return on Sales | 0.0558 |
Is Cornerstone Building (NYSE:CNR) outlook positive for September 2020?
 | By Raphi Shpitalnik | Macroaxis Story |
Cornerstone Building Tangible Asset Value is relatively stable at the moment as compared to the past year. Cornerstone Building reported last year Tangible Asset Value of 2.48 Billion. As of 08/11/2020, Working Capital is likely to grow to about 641.7 M, while Market Capitalization is likely to drop slightly above 1.1 B. The fundamental reasoning behind this short post is to break down our forecasting of Cornerstone for retail investors. We will try to forecast Cornerstone Building outlook for September.
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Reviewed by Gabriel Shpitalnik
Cornerstone Building holds a performance score of 15 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of 0.1633, which signifies not very significant fluctuations relative to the market. Let's try to break down what Cornerstone's beta means in this case. As returns on the market increase, Cornerstone Building returns are expected to increase less than the market. However, during the bear market, the loss on holding Cornerstone Building will be expected to be smaller as well. Although it is vital to follow Cornerstone Building historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. Our philosophy towards 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 Cornerstone Building Brands expected return of 1.07 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 Cornerstone Building maximum drawdown, as well as the relationship between the expected short fall and rate of daily change to analyze future returns on Cornerstone Building.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Cornerstone Building. Your research has to be compared to or analyzed against Cornerstone Building's peers to derive any actionable benefits. When done correctly, Cornerstone Building'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 Cornerstone Building.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Cornerstone Building. 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 Cornerstone Building
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Cornerstone Building'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.
How important is Cornerstone Building's Liquidity
Cornerstone Building financial leverage refers to using borrowed capital as a funding source to finance Cornerstone Building Brands ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cornerstone Building 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 Cornerstone Building'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 Cornerstone Building'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 Cornerstone Building's total debt and its cash.
Breaking it down a bit more
The latest price spike of Cornerstone Building could raise concerns from retail investors as the firm closed today at a share price of 6.97 on 503,590 in volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in September. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.82. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Cornerstone Building partners.
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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 Raphi Shpitalnik do not own shares of Cornerstone Building Brands. Please refer to our Terms of Use for any information regarding our disclosure principles.