Net 1 Story

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UEPS -- USA Stock  

USD 4.76  0.30  5.93%

16% of stocks are less volatile than Net 1, and 99% of all traded equity instruments are projected to make higher returns than the company over the 60 days investment horizon. Since many greedy investors are excited about technology space, let's sum up Net 1 against its current volatility. We will discuss why some retail investors are closely monitoring Net 1's volatility.
Published over three months ago
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Is Net 1 (NASDAQ:UEPS) low volatility a good sign for retail investors?
Net 1 UEPS currently holds roughly 209.29 M in cash with (19.66 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.74, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Volatility is a rate at which the price of Net 1 or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Net 1 may increase or decrease. In other words, similar to Net 1's beta indicator, it measures the risk of Net 1 and helps estimate the fluctuations that may happen in a short period of time. So if prices of Net 1 fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is Net 1's Liquidity

Net 1 financial leverage refers to using borrowed capital as a funding source to finance Net 1 UEPS ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Net 1 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. Please check the breakdown between Net 1's total debt and its cash.

How Net 1 utilizes its cash?

To perform a cash flow analysis of Net 1, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Net 1 is receiving and how much cash it distributes out in a given period. The Net 1 cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Net 1 Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Net 1 reported last year Net Cash Flow from Operations of (52.95 Million)

Net 1 Volatility Drivers

Net 1 unsystematic risk is unique to Net 1 UEPS and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Net 1 you can also buy AFTERPAY TOUCH GROUP. You can also mitigate this risk by investing in the software?infrastructure sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Net 1 important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Net 1 income statement and balance sheet. Here are more details about Net 1 volatility.