Diebold Story

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DBD -- USA Stock  

USD 7.68  0.11  1.41%

It looks as if Diebold Nixdorf will continue to recover much faster as its share price surged up 13.06% today. Diebold Nixdorf Inco's current daily volatility is 7.18 percent, with a beta of 2.97 and an alpha of 0.63 over DOW. As many of us are excited about computers, it is fair to digest Diebold Nixdorf Incorporated. I will address the reasons why this entity does not get much respect from shareholders under the current market uncertainty.
Published over a month ago
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Is Diebold Nixdorf (NYSE:DBD) a new disruptor?
Diebold Nixdorf Incorporated has roughly 522 M in cash with 113 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 6.72. On a scale of 0 to 100, Diebold Nixdorf holds a performance score of 9. The firm shows a Beta (market volatility) of 2.9663, which means a somewhat significant risk relative to the market. Let's try to break down what Diebold's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Diebold Nixdorf will likely underperform. Although it is vital to follow Diebold Nixdorf Inco historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy in predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-eight technical indicators for Diebold Nixdorf Incorporated, which you can use to evaluate the performance of the firm. Please utilizes Diebold Nixdorf Inco jensen alpha, maximum drawdown, and the relationship between the coefficient of variation and sortino ratio to make a quick decision on whether Diebold Nixdorf price patterns will revert.
Investing in Diebold Nixdorf, 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 Diebold Nixdorf 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.

How important is Diebold Nixdorf's Liquidity

Diebold Nixdorf financial leverage refers to using borrowed capital as a funding source to finance Diebold Nixdorf Incorporated ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Diebold Nixdorf 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 Diebold Nixdorf's total debt and its cash.

How Diebold utilizes its cash?

To perform a cash flow analysis of Diebold Nixdorf, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Diebold Nixdorf is receiving and how much cash it distributes out in a given period. The Diebold Nixdorf cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Diebold Nixdorf 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 135.8 Million

Diebold Nixdorf Correlation with Peers

Investors in Diebold can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Diebold Nixdorf Incorporated. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Diebold Nixdorf and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Diebold is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Diebold for more details

A Deeper look at Diebold

Diebold Nixdorf appears to be relatively risky, given 1 month investment horizon. Diebold Nixdorf Inco secures Sharpe Ratio (or Efficiency) of 0.14, which denotes the company had 0.14% of return per unit of standard deviation over the last month. Our philosophy in predicting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By reviewing Diebold Nixdorf Inco technical indicators you can presently evaluate if the expected return of 0.98% is justified by implied risk. Please utilize Diebold Nixdorf Inco Mean Deviation of 6.37, semi deviation of 6.72, and Downside Deviation of 7.64 to check if our risk estimates are consistent with your expectations.
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Our take on today Diebold Nixdorf surge

The treynor ratio is down to 0.37 as of today. Diebold Nixdorf Incorporated is displaying above-average volatility over the selected time horizon. Investors should scrutinize Diebold Nixdorf Incorporated independently to ensure intended market timing strategies are aligned with expectations about Diebold Nixdorf volatility.

The Current Takeaway on Diebold Nixdorf Investment

Although other entities under the software?application industry are still a bit expensive, Diebold Nixdorf may offer a potential longer-term growth to shareholders. Taking everything into account, as of the 30th of July 2020, we believe that Diebold Nixdorf is currently undervalued with below average odds of distress in the next two years. Our ongoing 30 days buy-hold-sell recommendation on the firm is Hold.

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 Ellen Johnson do not own shares of Diebold Nixdorf Incorporated. Please refer to our Terms of Use for any information regarding our disclosure principles.

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