American Renal Assoc's average rating is Hold from 3 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on American Renal market sentiment investors' perception of the future value of American. Let us look at a few aspects of American technical analysis.
How important is Amer Renal's Liquidity
Amer Renal
financial leverage refers to using borrowed capital as a funding source to finance Amer Renal Assoc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Amer Renal 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 Amer Renal'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 Amer Renal'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 Amer Renal's total debt and its cash.
Closer look at American Renal Semi Variance
American Renal Associates has current Semi Variance of 6.32. Semi-variance provides a good measure of downside volatility for equity or a portfolio. It is similar to variance, but it only looks at periods where the returns are less than the target or average level.
Semi-variance is the square of semi-deviation. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.
Semi Variance | = | SUM(RET DEV)2 N(ZERO) |
| = | 6.32 |
| SUM | = | Summation notation |
| RET DEV | = | Actual return deviation over selected period |
| N(ZERO) | = | Number of points with returns less than zero |
Let's now compare American Renal Semi Variance to its closest peers:
| ARA | 6.320134994695232 |
| GH | 4.4 |
| A | 1.48 |
| CO | 4.59 |
| DXCM | 7.23 |
Our perspective of the current American Renal rise
Current Risk Adjusted Performance is up to 0.05. Price may slip again. American Renal Associates currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.06. However, we do advice investors to further question American Renal Associates expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Whereas many of the other players under the diagnostics & research industry are still a bit expensive, American Renal may offer a potential longer-term growth to investors. To conclude, as of the 4th of October 2020, we see that American Renal follows the market closely. The company is
overvalued with
below average probability of distress within the next 24 months. Our primary 30 days buy-or-sell advice on the company is
Cautious Hold.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile 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 Gabriel Shpitalnik do not own shares of Amer Renal Assoc. Please refer to our
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