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Should we continue shadow FactSet Research (NYSE:FDS) executives?
 | By Raphi Shpitalnik | Macroaxis Story |
It seems FactSet Research may not recover as fast as we have hopped for as its price went down 3.55% today. The company's current daily volatility is 1.66 percent, with a beta of -0.01 and an alpha of 0.07 over DOW. Whilst many millenniums are getting more into investing against high market volatility, it is quite pruden to sum up FactSet Research Systems based on its historical prices. We will evaluate if FactSet Research shares are reasonably priced going into January.
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Reviewed by Rifka Kats
FactSet Research Systems has roughly 605.18 M in cash with 505.84 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 15.93. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. FactSet Research has an asset utilization ratio of 146.2 percent. This connotes that the company is making $1.46 for each dollar of assets. An increasing asset utilization means that FactSet Research Systems is more efficient with each dollar of assets it utilizes for everyday operations.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as FactSet Research. Your research has to be compared to or analyzed against FactSet Research's peers to derive any actionable benefits. When done correctly, FactSet Research's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in FactSet Research Systems.
Investing in FactSet Research, 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 FactSet Research 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.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of FactSet Research's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is FactSet Research's Liquidity
FactSet Research financial leverage refers to using borrowed capital as a funding source to finance FactSet Research Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. FactSet Research 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 FactSet Research'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 FactSet Research'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 FactSet Research's total debt and its cash.
FactSet Research Gross Profit
FactSet Research Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing FactSet Research previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show FactSet Research Gross Profit growth over the last 10 years. Please check FactSet Research's gross profit and other fundamental indicators for more details.
FactSet Research Correlation with Peers
Investors in FactSet can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in FactSet Research Systems. Diversification will allow for the same portfolio return with reduced risk. The correlation table of FactSet Research and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities FactSet 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 FactSet for more details
Is FactSet Research valued wisely by the market?
We consider FactSet Research very steady. FactSet Research Sys secures Sharpe Ratio (or Efficiency) of 0.0308, which denotes the company had 0.0308% 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. We have found twenty-eight technical indicators for FactSet Research Systems, which you can use to evaluate future volatility of the firm. Please confirm FactSet Research Sys Mean Deviation of 1.24, semi deviation of 1.78, and Downside Deviation of 1.84 to check if the risk estimate we provide is consistent with the expected return of 0.0512%.
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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 FactSet Research Systems. Please refer to our Terms of Use for any information regarding our disclosure principles.