What’s at Stake for Risanamento SpA (BIT:RN)? Cash Flow Change of -58.1880% Tells a Story

Investors looking to take advantage of cash heavy shares, they might look first to the cash flow of a company, and how fast that is growing.  Risanamento SpA (BIT:RN)  currently has one year cash flow growth of -58.1880% 1yr Growth Cash Flow = 1 year percentage growth of a company’s Cash Flow from operations (Cash Flow Statement). Analyzing cash flow can alert shareholders to potential dangers that may result from a lack of liquidity. Looking at the positive or negative movement of a company’s reported free cash flow will help determine if it has the necessary funds to finance capital expenditures and keep paying dividends.

Investors may be trying to figure out what stocks will give a boost to portfolio performance over the next few months. Value investors may be looking for current value in the market. They are generally looking for bargains and interested in uncovering those stocks that may be primed for a run but have fallen out of favor with Wall Street. Growth investors may be looking to target companies that are able to advance earnings faster than average. This may include searching for those industries that have strong growth trends and a proven track record of strong sales and earnings growth. 

Risanamento SpA (BIT:RN) of the Real Estate Investment & Services sector closed the recent session at 0.0226 with a market value of $46449.

Taking look at some key returns data we can note the following:

Risanamento SpA (BIT:RN) has Return on Invested Capital of -0.090039, with a 5-year average of -0.01599 and an ROIC quality score of 0.148962. Why is ROIC important to potential investors? It’s one of the most fundamental metrics in determining the value of a firm’s shares. It helps potential investors determine if the company is using it’s invested capital to return profits.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.000431 for Risanamento SpA (BIT:RN).  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.

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. Risanamento SpA (BIT:RN)’s Cash Flow to Capex stands at -815.888889.

Some investors may be looking to trade the trend and capitalize on strong current performers. Other investors may look to take a contrarian approach. This can involve looking for names that have been overlooked by the crowd. There are many different contrarian approaches that investors may choose to use. Going against the crowd may require a lot more homework and confidence. There may be hidden gems out there, but is may be wise to investigate why nobody else seems to want to get into the name. Finding that perfect strategy may take a lot of study and dedication. Taking shortcuts in the market can have severe negative effects on the long-term health of the portfolio.

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 -58.1880% for Risanamento SpA (BIT:RN).  The one year Growth EBIT ratio stands at -13.0730% and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at -13.9430% 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 -58.1520%.  The one year growth in Net Profit after Tax is -56.1560% and lastly sales growth was -58.4220%.

In looking at some Debt ratios, Risanamento SpA (BIT:RN) has a debt to equity ratio of 2.7813 and a Free Cash Flow to Debt ratio of -0.034083.  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 -17.89621.  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.  Risanamento SpA’s ND to MV current stands at 10.443799. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Investors are usually scouring the markets for that next great stock pick. Locating that special winner to jumpstart the portfolio may involve lots of diligent hard work. Filing through the massive amounts of data regarding public companies can be an overwhelming task. Many successful investors will approach the equity markets from various sides. This may include keeping a close eye on the fundamentals as well as the technical data. This may also include following sell-side analyst opinions and tracking what the big money institutions are buying or selling. 

50/200 Simple Moving Average Cross

Risanamento SpA (BIT:RN) has a 0.84143 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.

Traders are often looking for any little advantage that they can get when attempting to grab profits in the stock market. Traders might be closely watching insider buying and selling as well as what the successful fund managers are doing. Following the smart money can help investors get a grasp on the bigger picture of what is going on with certain equities. There is no shortage of information that the individual trader can get their hands on. Figuring out how to best put that information to work is an important part of any trading plan. With so much data to track, traders may need to decide which information they will use when making the big investing decisions. Pinpointing the next great trade could be just around the corner, but it may take some hard work and enhanced focus.