NetComm Wireless Limited (ASX:NTC)’s Volatility Moves the Target Weight to 0.05350 With 0.68891 Sales Growth

NetComm Wireless Limited (ASX:NTC) of the Technology Hardware & Equipment sector might have recently popped up on investor’s radars as the 74737 market cap company based out of Australia recently closed at 0.720000.  The stock has seen year over year sales growth of 0.68891 giving it a traded value of $45.

When getting into the markets, most investors realize that riskier stocks may have an increased potential for higher returns. If investors decide to take a chance on some of these stocks, they may want to employ some standard techniques to help manage that risk. This may involve creating a diversified stock portfolio. Mixing up the portfolio with stocks from different sectors, market caps, and growth potential, may be the right move. In general, the goal is to maximize returns in accordance with the individual’s specific risk profile. It should be obvious that no matter how well rounded the portfolio is, there are always risks in the equity markets. Having a sound plan before investing can help ease the burden of knowing that markets can sometimes do crazy things without any rhyme or reason. 

So how has NetComm Wireless Limited (ASX:NTC) performed in terms of returns?  The ROIC quality score stands at 2.475770 whilet he actual return on invested capital holds at  0.110555.  NetComm Wireless Limited’s book to market ratio is at 0.799051 while the book to market mean difference is 0.20437. 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.

In glancing at some key ratios we note that the Piotroski F-Score is at 8 (1 to 10 scale) and the ERP5 rank is at 6172. The Q.I. Value of NetComm Wireless Limited (ASX:NTC) currently reads 11.00000 on the Quant scale. The Free Cash Flow score of 2.046649 is also swinging some momentum at investors. The Australia based firm is currently valued at 45.

Some other notable ratios include the Accrual Ratio of 0.004739, the Altman Z score of 3.382796, a Montier C-Score of 1.00000 and a Value Composite rank of 12.

Debt

In looking at some Debt ratios, NetComm Wireless Limited (ASX:NTC) currently has a debt to equity ratio of 0.00000 and a Free Cash Flow to Debt ratio of . This ratio gives 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 -2.96586. This ratio reveals how easily a firm 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. NetComm Wireless Limited’s ND to MV current stands at -0.259773. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Active investors are typically interested in the factors that drive stock price movements. Buying an individual stock means that you own a piece of the company. The hope is that the company does very well and becomes highly profitable. A profitable company may decide to do various things with the profits. They may reinvest profits back into the business, or they may choose to pay shareholders dividends from those earnings. Sometimes stocks may eventually become undervalued or overvalued. Spotting these trends may lead to further examination or the underlying fundamentals of the company. A company that continues to disappoint on the earnings front may have some issues that need to be addressed. It is highly important to make sure all the research is done on a stock, especially if the investor is heavily weighted on the name. Sometimes earnings reports may be good, but the stock price does not reflect that. Having a good understanding of the entire picture may help investors better travel the winding stock market road.

NetComm Wireless Limited (ASX:NTC) are showing an adjusted slope average of the past 125 and 250 days of -22.55485.  The Adjusted Slope 125/250d indicator is equal to the average annualized exponential regression slope, over the past 125 and 250 trading days, multiplied by the coefficient of determination (R2).  The purpose of this calculation is to provide a longer term average adjusted slope value that levels out large share price movements by using the average. This indicator is useful in helping find stocks that have been on a smooth upward trend over the past 6 months to a year.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.338102 for NetComm Wireless Limited (ASX:NTC).  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.

As we sail into the second half of the calendar year, investors may be looking to see what has gone right and what has gone wrong so far this year. Making necessary changes to some holdings may help position investors for the next couple of quarters. Being able to cut the riskier losers and take some profits from winners may help solidify the stock portfolio. As we run through the next round of company earnings reports, investors will be keeping a close eye on the data that is reported. Investors may be looking to buy companies that continue to post beats on the earnings front, and cut ties with ones that are not hitting their marks.  

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