Is STEF S price slip deceptive?
 | By Ellen Johnson | Macroaxis Story |
Today post will go over STEF S. I will look into why albeit cyclical STEF S disturbance, the long term basic indicators of the company are still strong. Despite somewhat strong basic indicators, STEF S is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors. What is STEF S Target Price Odds to finish over Current Price? Depending on normal probability distribution, the odds of STEF S to move above current price in 30 days from now is about 68.58%. The STEF S A probability density function shows the probability of STEF S Stock to fall within a particular range of prices over 30 days . Assuming 30 trading days horizon, STEF S has beta of 0.4725 . This entails as returns on market go up, STEF S average returns are expected to increase less than the benchmark. However during bear market, the loss on holding STEF S A will be expected to be much smaller as well. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. STEF S A is significantly underperforming S&P 500.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Rifka Kats
The company has accumulated 742.42M in total debt with debt to equity ratio (D/E) of 116.9 indicating STEF S A may have difficulties to generate enough cash to satisfy its financial obligations. STEF S A has Current Ratio of 0.62 indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. This firm dividends can provide a clue to current valuation of the stock. STEF S one year expected dividend income is about €0.82 per share.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Stef SA income statement, its balance sheet, and the statement of cash flows. Potential Stef SA investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Stef SA investors may use each financial statement separately, they are all related. The changes in Stef SA's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Stef SA's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Stef SA fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Stef SA performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Stef SA shares is the value that is considered the true value of the share. If the intrinsic value of Stef is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Stef SA. Please read more on our fundamental analysis page. How important is Stef SA's Liquidity
Stef SA financial leverage refers to using borrowed capital as a funding source to finance Stef SA ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Stef SA 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 Stef SA'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 Stef SA'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 Stef SA's total debt and its cash.
What is driving Stef SA Investor Appetite?
The entity has beta of 0.5. As returns on market increase, STEF S returns are expected to increase less than the market. However during bear market, the loss on holding STEF S will be expected to be smaller as well. The small decline in market price for the last few months has created some momentum for investors as it was traded today as low as 83.6 and as high as 84.4 per share. The company directors and management did not add much value to STEF S A investors in April. However, diversifying your holdings with STEF S A or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.6078. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. STEF S is selling at 84.40. That is 0.48 percent increase. Today lowest is 83.6. In closing, our final buy/sell recommendation on the company is Strong Hold. We believe STEF S is fairly valued with below average odds of distress for the next two years.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial 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 Ellen Johnson do not own shares of Stef SA. Please refer to our Terms of Use for any information regarding our disclosure principles.