Is D S (OTC:DITHF) low volatility a good sign for shareholders?
 | By Vlad Skutelnik | Macroaxis Story |
D S is currently producing negative expected returns and takes up 1.0322% volatility of returns over 60 trading days. Since many greedy investors are excited about consumer cyclical space, let's digest D S against its current volatility. We will evaluate if D S's current volatility will continue into October. D S's very low volatility may have no significant impact on the stock's value as we estimate D S as currently fairly valued. The real value, based on our calculations, is getting close to 3.12 per share.
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Reviewed by Rifka Kats
This firm classifies itself under Consumer Cyclical sector and is part of Packaging & Containers industry. Volatility is a rate at which the price of DS Smith or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of DS Smith may increase or decrease. In other words, similar to DITHF's beta indicator, it measures the risk of DS Smith and helps estimate the fluctuations that may happen in a short period of time. So if prices of DS Smith fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is DS Smith's Liquidity
DS Smith financial leverage refers to using borrowed capital as a funding source to finance DS Smith PLC ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. DS Smith 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 DS Smith'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 DS Smith'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 DS Smith's total debt and its cash.
What is the case for DS Smith Investors
The company reported the revenue of 7.24 B. Net Income was 280 M with profit before overhead, payroll, taxes, and interest of 587 M.
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