Kroton Educacional to continue rise in April
 | By Rifka Kats | Macroaxis Story |
This firm current daily volatility is 3.71 percent, with beta of 0.27 and alpha of 0.18 over S&P 500. We consider Kroton Educacional extremely volatile. Kroton Educacional has Sharpe Ratio of 0.0534 which conveys that the firm had 0.0534% of return per unit of risk over the last 1 month. Our philosophy towards estimating 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-one technical indicators for Kroton Educacional which you can use to evaluate future volatility of the firm. Please verify Kroton Educacional S A Mean Deviation of 2.91, Downside Deviation of 3.41 and Risk Adjusted Performance of 0.0511 to check out if risk estimate we provide are consistent with the epected return of 0.1982%.
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Reviewed by Gabriel Shpitalnik
The company has accumulated 1.5B in total debt with debt to equity ratio (D/E) of 35.8 indicating Kroton Educacional may have difficulties to generate enough cash to satisfy its financial obligations. Kroton Educacional dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.04 per share. Lets now check Kroton Educacional Current Liabilities. In accordance with recently published financial statements Kroton Educacional S A has Current Liabilities of 345.67M. This is much higher than that of the Consumer Defensive sector, and significantly higher than that of Education & Training Services industry, The Current Liabilities for all stocks is notably lower than the firm.
How important is Kroton Educacional's Liquidity
Kroton Educacional financial leverage refers to using borrowed capital as a funding source to finance Kroton Educacional SA ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Kroton Educacional 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 Kroton Educacional'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 Kroton Educacional'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 Kroton Educacional's total debt and its cash.
Detailed Perspective On Kroton Educacional
The modest gains experienced by current holders of Kroton Educacional may raise some interest from investors. The Stock closed today at a share price of 2.81 on 11051.000 in trading volume. The company management have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in February. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 3.714. The above-average volatility is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Kroton Educacional partners. Kroton Educacional preserves 1.5b of total debt. Kroton Educacional is selling for 2.86. This is 2.51 percent up. Today highest was 2.88. On the whole, our analysis show that Kroton Educacional Slowly supersedes market. The company is overvalued and projects chance of financial distress below average for the next 2 years. Our concluding buy/sell advice on the company is Strong Sell.
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