Sri Trang slips -4.06

Today post will go over Sri Trang. I will look into why albeit cyclical Sri Trang disturbance, the long term basic indicators of the company are still strong. Sri Trang current daily volatility is 4.11 percent, with beta of -1.41 and alpha of 0.7 over S&P 500. Macroaxis considers Sri Trang unstable given 1 month investment horizon. Sri Trang Agro owns Efficiency Ratio (i.e. Sharpe Ratio) of 0.0927 which indicates the firm had 0.0927% of return per unit of risk over the last 1 month. Our philosophy towards measuring 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 Sri Trang Agro Industry Public Company Limited which you can use to evaluate future volatility of the company. Please operate Sri Trang Coefficient Of Variation of 840.55 and Risk Adjusted Performance of 0.0978 to confirm if our risk estimates are consistent with your expectations.
Published over a year ago
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Reviewed by Raphi Shpitalnik

This firm has accumulated 26.53B in total debt with debt to equity ratio (D/E) of 105.6 indicating Sri Trang may have difficulties to generate enough cash to satisfy its financial obligations. The firm dividends can provide a clue to current valuation of the stock. The entity one year expected dividend income is about 0.22 per share. Now, lets check Sri Trang Gross Profit. According to company disclosure Sri Trang Agro Industry Public Company Limited reported 7.11B of gross profit. This is 53.64% lower than that of the Consumer Cyclical sector, and 1270.73% higher than that of Rubber & Plastics industry, The Gross Profit for all stocks is 74.03% higher than the company.
Sri Trang financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Sri Trang, including all of Sri Trang's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Sri Trang assets, the company is considered highly leveraged. Understanding the composition and structure of overall Sri Trang debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

How important is Sri Trang's Liquidity

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

A Deeper Perspective

The latest increase in of Sri Trang Agro short term price appreciation has created some momentum for investors as it was traded today as low as 11.7 and as high as 12.6 per share. The company management have been quite successful with maneuvering the fund at opportune times to take advantage of all market conditions in April. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 4.1137. This high volatility is attributed to the latest market swings and not so good earning reports for some of the Sri Trang Agro partners. Sri Trang preserves 8.87% of return on equity. Sri Trang is trading at 11.80. This is 4.07 percent decrease. Today lowest is 11.7.
All in all, we believe that at this point Sri Trang is fairly valued with below average chance of bankruptcy within the next 2 years. Our primary buy/sell recommendation on the company is Strong Hold.

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Editorial Staff

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 Rifka Kats do not own shares of Sri Trang Agro Industry. Please refer to our Terms of Use for any information regarding our disclosure principles.

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