GrafTech Story

<div class='circular--portrait' style='background:#689CFD;color: #ffffff;font-size:4em;'>GI</div>
EAF -- USA Stock  

USD 8.08  0.03  0.37%

As many millenniums are getting more into industrials space, we are going to digest GrafTech International and Bloom Energy as potential shorter-term trade. We are going to discuss some of the competitive aspects of both GrafTech and Bloom.
Published over two weeks ago
View all stories for GrafTech International | View All Stories
Will GrafTech International (NYSE:EAF) shadow Bloom Energy price growth?
By analyzing existing basic indicators between GrafTech International and Bloom, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Bloom with a short position in GrafTech International. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. GrafTech International has an asset utilization ratio of 98.1 percent. This indicates that the company is making $0.98 for each dollar of assets. An increasing asset utilization means that GrafTech International is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as GrafTech or Bloom is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING GrafTech International dividends

A dividend is the distribution of a portion of GrafTech International earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. GrafTech International dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. GrafTech one year expected dividend income is about $0.41 per share.
The current year Dividend Yield is expected to grow to 0.0386. The current year Dividends per Basic Common Share is expected to grow to 0.45.
Last ReportedProjected for 2020
Dividend Yield 0.029  0.0386 
Dividends per Basic Common Share 0.34  0.45 
Investing in dividend-paying stocks, such as GrafTech International is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in GrafTech International must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for GrafTech International. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is GrafTech International's Liquidity

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

Correlation Between GrafTech and Bloom Energy

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding GrafTech International together with similar or unrelated positions with a negative correlation. For example, you can also add Bloom Energy to your portfolio. If Bloom Energy is not perfectly correlated to GrafTech International it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When GrafTech International for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between EAF and BE for more information.

Note

Are you currently holding both GrafTech International and Bloom Energy in your portfolio? Please note if you are using this as a pair-trade strategy between GrafTech International and Bloom Energy, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Detailed Perspective On GrafTech International

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me take a closer look at GrafTech International revenue. Based on the latest financial disclosure, GrafTech International reported 1.43 B of revenue. This is 59.13% lower than that of the Industrials sector and significantly higher than that of the Electrical Equipment & Parts industry. The revenue for all United States stocks is 84.84% higher than that of GrafTech International. As for Bloom Energy we see revenue of 782.4 M, which is much higher than that of the Electrical Equipment & Parts

GrafTech1.43 Billion
Sector0.0
Bloom782.4 Million
1.4 B
GrafTech
Sector
782.4 M
Bloom

Are GrafTech International technical indicators showing a correction?

Latest total risk alpha is at 0.13. GrafTech International shows above-average downside volatility for the selected time horizon. We advise investors to inspect GrafTech International further and ensure that all market timing and asset allocation strategies are consistent with the estimation of GrafTech International future alpha.

Our Takeaway on GrafTech International Investment

Although some firms 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 3rd of November 2020, our research shows that GrafTech International is a rather somewhat reliable investment opportunity with a quite high probability of distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. However, our concluding 30 days buy vs. sell advice on the firm is Strong Sell.

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 Raphi Shpitalnik do not own shares of GrafTech International. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com