When investors are recalibrating their portfolios they should take a look at current volatility levels and the target weight calculation of a given stock. Sociedad Química y Minera de Chile S.A. (NYSE:SQM) has a current target weight (% as a decimal) of 0.02810. This means that any balanced portfolio should not be holding more than this percentage of stock within their holdings group. This number is based on recent stock volatility for the past 100 days.
Many investors get into the stock market with unrealistic expectations. For whatever reason, they may have the mindset that snatching profits is easy. Thinking that profits can be doubled or tripled right away may lead the investor down the road of no return. Although the lucky few might hit some big winners right off the bat, these chances are quite low. Stocks tend to be volatile in the short-term. Unless investors have a game plan ready to capitalize on short-term movements, they may want to take a wider, longer-term approach. Trying to figure out which way the market will turn from one day to the next can be a highly frustrating procedure. Having the patience to thoroughly examine every trade can immensely boost the investor’s chances of surviving and thriving into the future.
50/200 Simple Moving Average Cross
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) has a 0.92039 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.
Returns and Margins
Taking look at some key returns and margins data we can note the following:
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) has Return on Invested Capital of 0.242772, with a 5-year average of 0.182910 and an ROIC quality score of 5.431862. Why is ROIC important? It’s one of the most fundamental metrics in determining the value of a given stock. It helps potential investors determine if the firm is using it’s invested capital to return profits.
On a typical market day there is no shortage of stock news. Investors are often tasked with trying to decipher which news is worth paying attention to and which isn’t. Not only is there plenty of swirling news, there are usually plenty of opinions that follow. Closely following market sentiment can be useful for some, but it may impede others when decisions need to be made. When it comes to dedicated stock research, taking shortcuts may result in disappointing portfolio performance. Investors have to be careful not to be tempted by the hot stocks of the day. Of course, maybe some of those stocks would fit well in the portfolio, but doing individual stock study can help confirm the addition.
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) of the Chemicals sector closed the recent session at 40.960000 with a market value of $10780530.
In looking at some Debt ratios, Sociedad Química y Minera de Chile S.A. (NYSE:SQM) has a debt to equity ratio of 0.59294 and a Free Cash Flow to Debt ratio of 0.332300. 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 0.76385. 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. Sociedad Química y Minera de Chile S.A.’s ND to MV current stands at 0.046244. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.
Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.170831 for Sociedad Química y Minera de Chile S.A. (NYSE:SQM). 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.
Serious investors are often looking for that next batch of quality stocks to add to the portfolio. Finding quality stocks at a discount can be a tough task, especially with the market trading at such high levels. Many investors will be patiently waiting for a dip to get in on some researched names. Being prepared for any situation may help the investor make those tricky decisions when opportunities present themselves. Nobody can say for sure which way momentum is likely to swing heading into the New Year. Staying on top of the key economic data can help provide a good baseline for stock investing decisions in the near future.
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. Sociedad Química y Minera de Chile S.A. (NYSE:SQM)’s Cash Flow to Capex stands at 2.678735.
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 -0.05344 for Sociedad Química y Minera de Chile S.A. (NYSE:SQM). The one year Growth EBIT ratio stands at 0.03404 and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at -0.00474 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 0.07368. The one year growth in Net Profit after Tax is 0.10938 and lastly sales growth was 0.06506.
For the average investor, figuring out how to best approach the stock market can be challenging. Many investors have probably seen at least one of their prized stocks take off in the last year, and they may be wondering which one is next. With the stock market still trading at super high levels, investors may be worried that a major shift will occur in the near future. Looking back over the first part of this year, investors may not have too much to fidget within the portfolio. If the stock market decides to reverse course and take a turn for the worse, investors may start questioning their strategy and become somewhat worried. Drastic shifts in the markets happen from time to time. Investors who are prepared for volatile market environments may be much better suited to weather the storm than those who are not. Crafting a plan that accounts for the regular ups and downs of the market may be a wise choice for the individual investor. This may mean shifting the mindset to be on the lookout for opportunities when they become available. Investors who have done the research and planning might be more secure in their stock choices should turbulent times arise.