By analyzing existing primary indicators between National Cinemedia and Parts, 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 Parts with a short position in National Cinemedia. 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. National Cinemedia has an asset utilization ratio of 20.67 percent. This implies that the company is making $0.21 for each dollar of assets. An increasing asset utilization means that National Cinemedia 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 entities, such as National or Direct is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding National CineMedia dividends
A dividend is the distribution of a portion of National CineMedia 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. National CineMedia 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. National one year expected dividend income is about USD0.02 per share.
The National CineMedia's current
Dividend Paid And Capex Coverage Ratio is estimated to increase to 0.96, while
Dividends Paid is projected to decrease to under 475
K.
Investing in stocks that pay
dividends, such as stock of National CineMedia, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in National CineMedia 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 National CineMedia. 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 National CineMedia's Liquidity
National CineMedia
financial leverage refers to using borrowed capital as a funding source to finance National CineMedia ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. National CineMedia 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 National CineMedia'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 National CineMedia'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 National CineMedia's total debt and its cash.
Correlation Between National and Direct Digital Holdings
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 National CineMedia together with similar or unrelated positions with a negative correlation. For example, you can also add Direct Digital to your portfolio. If Direct Digital is not perfectly correlated to National CineMedia 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 National CineMedia, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both National CineMedia and Direct Digital in your portfolio? Please note if you are using this as a pair-trade strategy between National CineMedia and Direct Digital, 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. Please check
pair correlation details between NCMI and DRCT for more information.
Breaking it down
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 now go over National Cinemedia revenue. Based on the latest financial disclosure, National Cinemedia reported 221.9
M of revenue. This is 98.49% lower than that of the Communication Services sector and significantly higher than that of the
Advertising Agencies industry. The revenue for all United States stocks is 97.65% higher than that of National Cinemedia. As for Parts ID we see revenue of 377.82
M, which is much higher than that of the Advertising Agencies
| National | 221.9 Million |
| Sector | 0.0 |
| Parts | 377.82 Million |
Will price continue to rise in April 2021?
National Cinemedia current standard deviation boosts over 5.03. National Cinemedia exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate National Cinemedia individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about National Cinemedia future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure National Cinemedia's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact National Cinemedia's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
The Current Takeaway on National Cinemedia Investment
While other companies under the advertising agencies industry are still a bit expensive, National Cinemedia may offer a potential longer-term growth to stockholders. The bottom line, as of the 8th of March 2021, we believe that National Cinemedia is currently
overvalued with
below average odds of financial turmoil in the next two years. Our current 30 days Buy-Hold-Sell recommendation on the company is
Strong Sell.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile 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 Gabriel Shpitalnik do not own shares of National CineMedia. Please refer to our
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