Fiat Chrysler Automobiles N.V. (BIT:FCA) has seen cash flow growth over the past year of -0.25610. Cash flow and cash flow growth can reveal to an investor how quickly the firm is generating inflows of cash from their business operations.
There are various types of investment philosophies that investors may choose to follow when approaching the stock market. Value investing involves searching for undervalued or bargain stocks that may eventually offer solid returns. Growth investors often buy companies that have highly promising growth potential. Some investors will choose to invest with a contrarian approach. This entails making investment decisions that are opposite of what the majority are doing, such as buying when everyone else is selling and vice-versa. Socially responsible investors may be searching for companies that subscribe to a high level of ethical or moral standards.
Fiat Chrysler Automobiles N.V. (BIT:FCA) of the Automobiles Parts sector closed the recent session at 12.006000 with a market value of $21109864.
Taking look at some key returns data we can note the following:
Fiat Chrysler Automobiles N.V. (BIT:FCA) has Return on Invested Capital of 0.135878, with a 5-year average of 0.101517 and an ROIC quality score of 3.375221. Why is ROIC important to potential investors? It’s one of the most fundamental metrics in determining the value of a firm’s shares. It helps potential investors determine if the company is using it’s invested capital to return profits.
Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.125127 for Fiat Chrysler Automobiles N.V. (BIT:FCA). The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.
In addition to Capex to PPE we can look at Cash Flow to Capex. This ration compares a stock’s operating cash flow to its capital expenditure and can identify if a firm can generate enough cash to meet investment ne. Investors are looking for a ratio greater than one, which indicates that the firm can meet that need. Comparing to other firms in the same industry is relevant for this ratio. Fiat Chrysler Automobiles N.V. (BIT:FCA)’s Cash Flow to Capex stands at 2.416012.
When it comes to investing, overconfidence can be detrimental to securing profits in the stock market. When investors have some early short-term wins, this may lead them to believe that it is their skill and superior knowledge that produced the winners. All though this may occasionally be the case, investors may quickly realize that it is very hard to consistently produce winning results. Sometimes a few wins can lead the investor to believe that they can make any trade work. This may create a situation where the individual gets in much deeper than they should have. Conducting the proper stock research before any trade can help the investor make sure that they are getting into a position for the right reasons.
Near-Term Growth Drilldown
Now we’ll take a look at some key growth data as decimals. One year cash flow growth ratio is calculated on a trailing 12 months basis and is a one year percentage growth of a firm’s cash flow from operations. This number stands at -0.25610 for Fiat Chrysler Automobiles N.V. (BIT:FCA). The one year Growth EBIT ratio stands at -0.19432 and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at -0.15101 which is calculated similarly to EBIT Growth with just the addition of amortization.
In looking at some Debt ratios, Fiat Chrysler Automobiles N.V. (BIT:FCA) has a debt to equity ratio of 0.58394 and a Free Cash Flow to Debt ratio of 0.324072. This ratio provides insight as to how high the firm’s total debt is compared to its free cash flow generated. In terms of Net Debt to EBIT, that ratio stands at 0.53464. This ratio reveals how easily a company is able to pay interest and capital on its net outstanding debt. The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio. Fiat Chrysler Automobiles N.V.’s ND to MV current stands at 0.133736. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.
Investors have a few distinct options when approaching the stock market. One option is to follow the crowd and trade with the consensus. Another way is to go against the herd and adopt a contrarian strategy. When it comes down to it, the investor will typically have to make this decision with their best interests in mind. In general, no investor wants to miss out on a winning stock. Far too often, investors will be overcome with the fear of missing out and get into a stock way too late. Just because a stock has been over performing and seeing large gains does not mean that those gains are going to continue into the future. Investors may be too quick to get into a hot stock without putting in the proper time and energy to research whether or not it is still a good stock at current trading levels. Investors who take the time to do their homework for every trade may find themselves a step ahead of the crowd in the long run.
Cross SMA 50/200 = 50 day moving average / 200day moving average. If the Cross SMA 50/200 value is greater than 1, it tell us that the 50 day moving average is above the 200 day moving average (golden cross), indicating an upward moving share price.
On the other hand if the Cross SMA 50/200 value is less than 1, this shows that the 50 day moving average is below the 200 day moving average (a death cross), and tells us that share prices has fallen recently and may continue to do so.
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