Today's write-up is for all stakeholders who are seriously contemplating on exiting a position in Mechel PAO. I will summarize the rationale of why Mechel PAO stakeholders should not be insulted by the new pull out. This firm Piotroski F Score is 6 - Healthy. Considering 30-days investment horizon, Mechel PAO is expected to under-perform the market. In addition to that, the company is 3.29 times more volatile than its market benchmark. It trades about -0.07 of its total potential returns per unit of risk. The market is currently generating roughly 0.13 per unit of volatility. Macroaxis considers Mechel PAO to be dangerous. Mechel PAO has Sharpe Ratio of -0.0703 which conveys that the firm had -0.0703% of return per unit of risk over the last 1 month. Macroaxis philosophy towards estimating risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. Mechel PAO exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify Mechel PAO Mean Deviation of 1.94 and Risk Adjusted Performance of (0.04909) to check out risk estimate we provide.
MECHEL OAO ADS has about 105.46M in cash with 2.31B of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.51. Mechel PAO dividends can provide a clue to current valuation of the stock. The firm is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. Let me take a closer look at Mechel PAO Number of Shares Shorted. Based on recorded statements Mechel PAO has 76.27K of outstending shares currently sold short by investors. This is much higher than that of the Basic Materials sector, and significantly higher than that of Steel industry, The Number of Shares Shorted for all stocks is notably lower than the firm.
Investing in Mechel OAO, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Mechel OAO along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Mechel OAO's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please consider monitoring Mechel OAO on a daily basis if you are holding a position in it. Mechel OAO is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Mechel OAO stock to be traded above the $1 level to remain listed. If Mechel OAO stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Mechel OAO's Liquidity
Mechel OAO financial leverage refers to using borrowed capital as a funding source to finance Mechel OAO ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Mechel OAO 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 Mechel OAO'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 Mechel OAO'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 Mechel OAO's total debt and its cash.
How is Mechel allocating its cash?
To perform a cash flow analysis of Mechel OAO, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Mechel OAO is receiving and how much cash it distributes out in a given period. The Mechel OAO cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Mechel OAO Correlation with Peers
Investors in Mechel can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Mechel OAO. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Mechel OAO and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Mechel is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Mechel for more details
Detailed Perspective On Mechel OAO
Mechel PAO price decrease over the last few months may encourage investors to take a closer look at the firm as it closed today at a share price of 2.0377 on 20228.000 in trading volume. The company management were not very successful in positioning the firm components to exploit market volatility in April. However, diversifying your holdings with Mechel PAO or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.325. The current volatility is consistent with the ongoing market swings in April 2019 as well as with Mechel PAO unsystematic, company specific events. Mechel PAO defends 2.59b ebitda. Mechel PAO is selling for under 2.08. That is 3.48 percent increase. Today lowest is 2.0377. Mechel PAO Debt Current is increasing over the last 4 years. The new value of Mechel PAO Debt Current is 430,225,105,263. Also, Mechel PAO Capital Expenditure is increasing over the last 4 years.
To conclude, we believe that at this point Mechel PAO is dangerous with quite high chance of bankruptcy within the next 2 years. Our concluding buy-hold-sell recommendation on the business is Hold.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce. View Profile
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