By the Book For Novolipetsk Steel ($NLMK.L):: ROA Reaches 0.186324

Return on assets measures the amount of profit the company generates as a percentage of the value of its total assets.  Novolipetsk Steel (NLMK.L) has an Return on Assets of 0.186324.  The profit percentage of assets varies by industry, but in general, the higher the ROA the better. For this reason it is often more effective to compare a company’s ROA to that of other companies in the same industry or against its own ROA figures from previous periods. Falling ROA is almost always a problem, but investors and analysts should bear in mind that the ROA does not account for outstanding liabilities and may indicate a higher profit level than actually derived.

Stock market investing can indeed tug on an individual’s emotional strings. When the market becomes tumultuous, investors may be tempted to act impulsively, or they may freeze and not act at all. Being prepared for various scenarios may help the investor better deal with the market when the time comes. Staying disciplined with portfolio rebalancing and asset allocation may be a big help for the individual investor. Investors who constantly try to outguess the market and chase winners may eventually find themselves swimming upstream. Staying the course and keeping a logical perspective may assist the investor with making the tricky portfolio decisions when necessary.  

The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Novolipetsk Steel (NLMK.L) is 1115. The lower the ERP5 rank, the more undervalued a company is thought to be.

FCF Yield 5yr Avg

The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a company is determined by looking at the cash generated by operations of the company. The Free Cash Flow Yield 5 Year Average of Novolipetsk Steel (NLMK.L) is 0.092615. The FCF Yield currently stands at 0.142868.

Volatility 12 m, 6m, 3m

Stock volatility is a percentage that indicates whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. The Volatility 12m of Novolipetsk Steel (NLMK.L) is 26.7294. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized. The lower the number, a company is thought to have low volatility. The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months. The Volatility 3m of Novolipetsk Steel (NLMK.L) is 26.7102. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 24.9108.

Piotroski F-Score

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of Novolipetsk Steel (NLMK.L) is 7. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks.  The Price Range of Novolipetsk Steel (NLMK.L) over the past 52 weeks is 0.087518.  The 52-week range can be found in the stock’s quote summary.

Novolipetsk Steel (NLMK.L) based out of United Kingdom and resides in the Materials sector, has a market cap of 12100866.13 after recently touching 22.34 on a recent bid.  Novolipetsk Steel (NLMK.L) sees an average of trading volume of 7129.1744. Novolipetsk Steel (NLMK.L) competes in the Metals and Mining industry.

Total Asset Growth

In their 2008 paper, professors Cooper, Gulen and Schill provided evidence that a firm’s assets growth rates are strong predictors of future abnormal returns.

“The findings suggest that corporate events associated with asset expansion (i.e., acquisitions, public equity offerings, public debt offerings, and bank loan initiations) tend to be followed by periods of abnormally low returns, whereas events associated with asset contraction (i.e., spin-offs, share repurchases, debt prepayments, and dividend initiations) tend to be followed by periods of abnormally high returns.” – Cooper, Gulen & Shill in Asset Growth and the Cross-Section of Stock Returns. In a study on US data during the period 1967-2007, they find that:

– A hedge portfolio rebalanced annually that is long (short) the stocks of companies with the lowest (highest) percentage growth in total assets over the previous 12 months generates an average annual return of 22%.
– This asset growth effect is stronger for small capitalization stocks, but is still substantial for large capitalization stocks.
– The effect is strongest in the month of January.
– Asset growth rate retains large explanatory power for future stock returns after accounting for firm size, book-to-market ratio and momentum. In fact the asset growth effect is at least as powerful in explaining returns as these other widely used factors.

We calculate asset growth as follows:

Total Asset Growth = (Total AssetsTotal Assets y-1) − 1. Novolipetsk Steel (NLMK.L) has a total asset growth number of 0.053768.

Many individuals may have a tough time trying to figure out what actually drives financial markets. There are plenty of investing strategies and trading systems that individuals can use when trying to navigate the stock market. Sudden stock market moves can be mysterious, especially if the move goes against what professionals are expecting. When traders are just starting out, major market shifts can have the ability to wreak havoc if they are unprepared. Nobody wants to be on the losing end of a trade, but the reality is that it can happen at any time. Being prepared for the unknown isn’t easy, but it may be a good way to help ease the burden when markets get choppy.

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