GrafTech Story

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EAF -- USA Stock  

USD 6.96  0.93  11.79%

GrafTech International is scheduled to announce its earnings today. The next earnings report is expected on the 5th of November 2020. As some millenniums are still trying to avoid industrials space, I will try to digest GrafTech International a little further in order to understand its potential as a viable investment. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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Do analysts have more confidence in GrafTech International (NYSE:EAF) in August?
This firm has 1.83 B in debt with debt to equity (D/E) ratio of 55.3, demonstrating that GrafTech International may be unable to create cash to meet all of its financial commitments.
What is the right price you would pay to acquire a share of GrafTech International? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with GrafTech International this year

Annual and quarterly reports issued by GrafTech International are formal financial statements that are published yearly and quarterly and sent to GrafTech stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as GrafTech International often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How GrafTech utilizes its cash?

To perform a cash flow analysis of GrafTech International, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash GrafTech International is receiving and how much cash it distributes out in a given period. The GrafTech International cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. GrafTech International Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 805.32 Million

Is GrafTech a risky opportunity?

Let's check the volatility. GrafTech is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind GrafTech (NYSE:EAF) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. purchasing a share of a GrafTech International stock makes you a part-owner of that company.

GrafTech International Current Consensus

Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering GrafTech International. The GrafTech consensus assessment is calculated by taking the average estimates from all of the analysts covering GrafTech International

Strong Buy
1
Hold
2
Strong Buy133.33
Buy00.0
Hold266.67
Sell00.0
Strong Sell00.0

Our perspective of the latest GrafTech International surge

Jensen Alpha just dropped to -0.62, may indicate upcoming price depreciation. GrafTech International exhibits very low volatility with skewness of 0.02 and kurtosis of 1.42. However, we advise investors to further study GrafTech International technical indicators to make sure all market info is available and is reliable.

Our Final Takeaway

Although many other companies in the electrical equipment & parts industry are either recovering or due for a correction, GrafTech International may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 6th of August 2020, we believe GrafTech International is currently undervalued. It hyperactively responds to market trends and projects quite high odds of distress in the next two years. Our overall 30 days 'Buy-vs-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 GrafTech International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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