Are you really holding on to Barry Callebaut?
 | By Raphi Shpitalnik | Macroaxis Story |
In spite of rather sound fundamental drivers, Barry Callebaut is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders. Barry Callebaut Ag probability of financial unrest is under 15 percent. Will shareholders continue to be optimistic, or should we expect a sell-off in August?
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Reviewed by Ellen Johnson
Barry Callebaut Ag utilizes its assets nearly 5.36 percent, earning $0.0536 for each dollar of assets held by the firm. An expanding asset utilization signifies that the company is being more effective with each dollar of assets it shows. Put another way asset utilization of Barry Callebaut shows how effective it operates for each dollar spent on its assets. Barry dividends can provide clues to the current value of the stock. The entity one year expected dividend income is about $17.01 per share. The company has Profit Margin (PM) of 5.13 %, which can be a sign that it executes well on its competitive strategies and has a good control over its expenditures. This is normal as compared to the sector avarege.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Barry Callebaut income statement, its balance sheet, and the statement of cash flows. Potential Barry Callebaut investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Barry Callebaut investors may use each financial statement separately, they are all related. The changes in Barry Callebaut's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Barry Callebaut's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Barry Callebaut fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Barry Callebaut performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Barry Callebaut shares is the value that is considered the true value of the share. If the intrinsic value of Barry is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Barry Callebaut. Please read more on our fundamental analysis page. How important is Barry Callebaut's Liquidity
Barry Callebaut financial leverage refers to using borrowed capital as a funding source to finance Barry Callebaut AG ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Barry Callebaut 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 Barry Callebaut'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 Barry Callebaut'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 Barry Callebaut's total debt and its cash.
Breaking down Barry Callebaut Further
Barry Callebaut maintains earnings per share of 65.13 x. The market capitalization of Barry Callebaut Ag is $10.54 Billion. Barry Callebaut Ag retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please take into account that even companies with profitable outlook can generate negative future returns on their equity. If the true value of the the firm is less than the current market value, you may not be able generate positive returns on investment in the long run.
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