Graftech Story

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EAF -- USA Stock  

USD 11.89  0.32  2.77%

GrafTech International is scheduled to announce its earnings today. The next earnings report is expected on the 5th of May 2021. 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 recent GrafTech International price moves suggest a bounce in March.
Published over three weeks ago
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Should you exit your GrafTech International (NYSE:EAF) positions because of the latest analyst consensus?
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 89.18 percent. This indicates that the company is making $0.89 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.
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.
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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.

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 563.65 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
1
Strong Buy150.0
Buy00.0
Hold150.0
Sell00.0
Strong Sell00.0

Will GrafTech International shareholders go ballistic after another dip?

Latest downside variance is at 14.6. 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 Conclusion on GrafTech International

Although some companies in the electrical equipment & parts industry are either recovering or due for a correction, GrafTech may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 5th of February 2021, our analysis shows that GrafTech International hyperactively responds to market trends. The firm is overvalued and projects average probability of distress for the next 2 years. Our primary 30 days 'Buy-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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