A recent look at ownership and volatility brings us to a 0.03340 target portfolio weight (as a decimal) for Cineworld Group plc (LSE:CINE) Target weight is the volatility adjusted recommended stock position size for a position in your portfolio. The maximum target weight is 7% for any given stock. The indicator is based off of the 100 day volatility reading and calculates a target weight accordingly. If a stock has been more volatile of late, the lower the target weight will be. The 3-month volatility stands at 33.401600 (decimal). This is the normal returns and standard deviation of the stock price over three months annualized.
Investors may need to sometimes be reminded of the risks involved with stock market investing. Figuring out the individual capacity for risk may involve gauging the possible impact that real losses can have not only on the stock portfolio, but the investor’s mindset as well. Preparing for risk before jumping into the market can help put things in perspective. Investors who wait until holdings suddenly start dropping may be in for quite a shock when things go haywire. Many risk related errors can be addressed with proper calculations up front. Being aware of risk and managing the portfolio accordingly can be a big factor in the long-standing success of the investor.
50/200 Simple Moving Average Cross
Cineworld Group plc (LSE:CINE) has a 0.86806 50/200 day moving average cross value. Cross SMA 50/200 (SMA = Simple Moving Average) and is calculated as follows:
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.
Returns and Margins
Taking look at some key returns and margins data we can note the following:
Cineworld Group plc (LSE:CINE) has Return on Invested Capital of 0.115100, with a 5-year average of 0.255772 and an ROIC quality score of 10.210446. Why is ROIC important? It’s one of the most fundamental metrics in determining the value of a given stock. It helps potential investors determine if the firm is using it’s invested capital to return profits.
Successful investors are typically well aware of portfolio holdings at any given time. They tend to regularly review the portfolio to make sure that the combination of stocks is in line with goals and contributing to the outlined strategy. There may be times when everything seems to be in order after a thorough portfolio review. Other times, there may be a few changes that can be made. Maybe there are one or two names that have been over performing providing a big boost to the portfolio. On the other end, there could be a few stocks that are impacting the portfolio in a negative way and they may need to be addressed. Although constant portfolio monitoring may not be overly necessary for longer-term investors, regular portfolio examination is generally considered to be a good idea.
Cineworld Group plc (LSE:CINE) of the Travel & Leisure sector closed the recent session at 2.412000 with a market value of $4120248.
In looking at some Debt ratios, Cineworld Group plc (LSE:CINE) has a debt to equity ratio of 2.19993 and a Free Cash Flow to Debt ratio of 0.080389. 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 10.38865. 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. Cineworld Group plc’s ND to MV current stands at 1.701669. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.
Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.050613 for Cineworld Group plc (LSE:CINE). 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.
When watching the day to day movements of the market, investors often have to be careful not to let external factors cloud their judgment. From time to time, there may be certain stocks taking off that look highly tempting to purchase. Getting into a position based on short-term price movements may be a specific strategy for some, but it may be highly costly for others. Even if a stock has been on a big run that the investor might have missed out on, there is no guarantee that the run will continue higher. Although there may be potential in highly publicized stocks, it may be wise for investors to do their own research and then decide if the stock fits with the overall goals.
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 needs. 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. Cineworld Group plc (LSE:CINE)’s Cash Flow to Capex stands at 3.214528.
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 0.67471 for Cineworld Group plc (LSE:CINE). The one year Growth EBIT ratio stands at 1.19694 and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at 1.43242 which is calculated similarly to EBIT Growth with just the addition of amortization.
Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at 0.71380. The one year growth in Net Profit after Tax is 0.31838 and lastly sales growth was 0.77632.
One of the biggest obstacles standing in the way of the individual investor is unrealistic expectations. Many times, investors will have an incorrect vision of what they expect to get from their investments in terms of actual returns. Creating unrealistic expectations can lead to overextending risk in the future. If an investor loses patience and thinks that they should be seeing bigger returns than they are currently generating, this may cause them to enter into a few ill advised trades in order to try to hit that previously determined number. Setting realistic, attainable goals may help the investor immensely, not just in terms of future returns, but in terms of the psyche as well.