If Cash Is King, Is Staffline Group plc (AIM:STAF)’s -0.20108 Enough?

Staffline Group plc (AIM:STAF) has seen year over year cash flow change of -0.20108.  This is calculated as the one year percentage growth of the firm’s cash flow from operations from their publicly filed statement of cash flows.  Cash reserves are an important element for an investor to consider when analyzing a stock.  A continued reduction in cash flow could spell trouble for a firm while on the other hand solid continued cash flow growth should translate into stock growth.

Individual investors have a lot to study when dealing with the stock market. New investors may start out thinking that with enough capital, they can easily start securing substantial gains. While equity market investing can help individuals build wealth, it can also be highly risky. Market education may be an extremely important part of any investor’s game plan. Knowing exactly where the money is invested and why it is invested there, may be a big help when reviewing portfolio performance down the line. Any investor who takes the reins and decides to make their own decisions should realize the importance of a well-rounded stock market education.

In taking a look at some other key growth stats we note that the one year Growth EBIT ratio stands at 0.11071 for Staffline Group plc (AIM:STAF) and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at 0.01659 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 -0.16244. The one year growth in Net Profit after Tax is 0.87805 and lastly sales growth was 0.13730.

Staffline Group plc (AIM:STAF) has a present suggested portfolio ownership rate of 0.03030 (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 holding. The indicator is based off of 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 30.146000 (decimal). This is the normal returns and standard deviation of the stock price over three months annualized.

Diving down into some additional near-term indicators we see that the Capex to PPE ratio stands at 0.414634 for Staffline Group plc (AIM:STAF). 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.

When it comes to investing in stocks, the question of risk will eventually need to be addressed. Of course, there are no guarantees when investing in the stock market. With this in mind, investors can proceed with a plan that helps minimize risk while still providing the opportunity to experience large profit potential. Each investor may have a different financial situation or tolerance for risk. There is often a fine line between being too aggressive or too conservative with equity investments. Finding that balance between the two extremes may be exactly what the earnest investor strives to do when tackling the markets.

In looking at some key ratios we note that the Piotroski F Score stands at 6 (1 to 10 scale) and the ERP5 rank holds steady at 2304. The Q.I. Value of Staffline Group plc (AIM:STAF) currently reads 16.00000 on the Quant scale. The Free Cash Flow score of 0.647508 is also swinging some momentum at investors. The Great Britain based firm is currently valued at 446.

Some other notable ratios include the Accrual Ratio of 0.078540, the Altman Z score of 5.782781, a Montier C-Score of 1.00000 and a Value Composite rank of 27.

Many active investors will use technical analysis when conducting stock research. Technical analysis involves studying trends and trying to predict which trends will continue into the future. Many technical traders will rely on charts to help provide the information they desire. Some technicians will use one or two technical indicators while others will combine many different ones. There are plenty of indicators out there that can be studied. Figuring out which indicators are the most reliable can be a tricky endeavor. Traders may want to try out various combinations in order to identify the ones that seem to provide the best advantage, even if it is a small one.

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. Staffline Group plc (AIM:STAF)’s Cash Flow to Capex stands at 8.705882.

Investors may be digging through all of the most recent earnings report trying to locate a few names that are poised to make a run. Investors often take notice when a company beats or misses analyst projections by a wide margin. Once identifying these stocks, investors may want to look back at earnings history over the past few quarters. While one or two sub-par quarters may not be a legitimate cause for alarm, a long string of underperformance may be worth looking into. On the flip side, one or two great quarters may not be telling the complete picture either. Going behind the curtain and investigating the numbers may help the investor locate the next batch of stocks to add to the portfolio.

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