Business

Has Renew Holdings plc (AIM:RNWH) Hit a Sweet Spot? Target Weight For Portfolio Skips Higher to 0.02490

According to the latest data, Renew Holdings plc (AIM:RNWH) has a current suggested portfolio ownership tally of 0.02490 (as a decimal) ownership.  Target weight is the volatility adjusted recommended position size for a stock in your portfolio.  The maximum target weight is 7% for any given stock.  The indicator is derived from the 100 day volatility reading and calculates a target weight accordingly.  The more recent volatility of a stock, the lower the target weight will be.  The 3-month volatility stands at 31.641800 (decimal).  This is the normal returns and standard deviation of the stock price over three months annualized. Looking further out, The 6-month volatility reading is 33.173900  and the 12 month is 33.078000.  

At some point in time, traders may have to deal with the overconfidence issue when dealing with the market. Traders may have times when they go on runs where everything works out. This may cause the individual to become overconfident in their ability and possibly lead to uninformed decisions late on. When the good times are rolling, it can be easy to think that the winners are a direct result of skill. This may be true, but if this is incorrect, it can lead to portfolio damage in the future. Having is long string of winning trades is a great thing, but markets can be cruel and have the ability to turn very quickly. Approaching every trade with the same research and examination may help the trader to make better decisions when a string of trades eventually go the wrong way.

Renew Holdings plc (AIM:RNWH) of the Construction & Materials sector closed the recent session at 3.690000 with a market value of $356220.

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

So how has Renew Holdings plc (AIM:RNWH) performed in terms of returns?  The ROIC quality score stands at 1.762990 whilet he actual return on invested capital holds at  0.377166.  Renew Holdings plc’s book to market ratio is at 0.271735 while the book to market mean difference is 0.02183. This indicator tells you how a company is currently valued in terms of Book to Market compared to its average Book to Market over the past 10 years. It’s important to note that BM is the inverse of the Price to book ratio. Thus a high BM ratio means a company is undervalued. Renew Holdings plc (AIM:RNWH) has seen free cash flow growth of -0.223311 and has a free cash flow score of 0.477827.  Free Cash Flow Score (FCF Score) is a value that is calculated by combining Free cash flow growth with free cash flow stability. It thus gives you a combined indication of free cash flow quality.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.067428 for Renew Holdings plc (AIM:RNWH).  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.

Investors will be closely tracking the equity market as we charge through the last couple of months of the year. They may be doing a review of the portfolio to see what moves have worked and which ones haven’t. Reviewing specific holdings and past entry and exit points may help the investor develop new ideas to trade on in the future. Staying on top of market happenings and the economic landscape can be a challenge. Investors will be closely following the action over the next quarter to help gauge whether the bulls will stay out front, or if the bears will take the lead. 

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. Renew Holdings plc (AIM:RNWH)’s Cash Flow to Capex stands at 12.469526.

Debt

In looking at some Debt ratios, Renew Holdings plc (AIM:RNWH) has a debt to equity ratio of 0.46346 and a Free Cash Flow to Debt ratio of 0.435788.  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 1.63450.  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.  Renew Holdings plc’s ND to MV current stands at 0.092890. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Investors may be looking for the next positive catalyst to create a solid breakout. Some may be wondering when the party will end, and it remains to be seen if excess and profit-taking rotation may create any pullbacks in the upcoming quarter. Investors may have to make a decision whether to ease-up or stay aggressive. Investors may also be closely watching winners and losers, especially in the technology sector. Understanding and researching the space may be highly important when managing the investment portfolio. The key for investors will be to try and locate the winners in the space and find the companies that are either creating new technology or adapting to it rapidly. 

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 0.10201 for Renew Holdings plc (AIM:RNWH).  The one year Growth EBIT ratio stands at -0.32275 and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at -0.18131 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 0.04148.  The one year growth in Net Profit after Tax is -0.45498 and lastly sales growth was -0.03219.

50/200 Simple Moving Average Cross

Renew Holdings plc (AIM:RNWH) has a 0.90353 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.

Market watchers diligently track the companies they think can do well to grow earnings. The goal is typically to discover stocks that are most likely to outperform in the future. Many investors like to keep tabs on sell-side analyst views. Following the direction estimates are trending may provide a deeper glimpse into the health of a company. Investors may need to follow a disciplined system which may help keep emotions in check when making investment decisions. On the other end, it may be necessary to craft a new strategy if the old system isn’t providing the types of expected returns. It can also become very time-consuming to keep up with shorter-term trends and events. Managing the short-term plan with the long-term plan can be difficult given the existing economic climate.

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