July 13, 2019 at 2:21 am

Johns Lyng Group Limited (ASX:JLG)’s Slope Reading Hits 47.95984 For the 125/250 Average

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Shares of Johns Lyng Group Limited (ASX:JLG) are showing an adjusted slope average of the past 125 and 250 days of 47.95984.  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 evens out large stock 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. 

Technical traders may be following indicators to help spot possible entry and exit points. The two main types of indicators are lagging and leading. The leading indicator precedes stock price movements which can be used as a predictor. Lagging indicators may be used as confirmation as they follow price action. Lagging indicators may be highly useful when the market is trending, and leading indicators may be the strongest when the market is moving sideways. Indicators that stay within a certain range are referred to as oscillators. These common indicators are usually monitored for trading signals when the reading gets close to a specific level. 

Johns Lyng Group Limited (ASX:JLG) of the Construction & Materials sector closed the recent session at 1.450000 with a market value of $224752.

Investor Target Weight

Johns Lyng Group Limited (ASX:JLG) has a current suggested portfolio rate of 0.03320 (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 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 28.495300 (decimal).  This is the normal returns and standard deviation of the stock price over three months annualized. 

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.009621 for Johns Lyng Group Limited (ASX:JLG).  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.

Traders using technical analysis typically believe that all the needed information to trade a specific stock can be spotted in the charts. These traders are generally taking a shorter-term view when studying the market. Technical analysts are usually striving to spot the directional trend of a stock. Trends may be noted as upward, downward, or sideways. Many technicians will rely heavily on support and resistance levels in order to make informed decisions when buying and selling equities. These traders are also closely watching volume levels to help gauge activity. Traders are constantly searching for patterns in the charts. There are many different identifiable patterns that traders can look for. Some of these include head and shoulders, triangles, and double tops/bottoms.

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. Johns Lyng Group Limited (ASX:JLG)’s Cash Flow to Capex stands at 189.255814.

Debt

In looking at some Debt ratios, Johns Lyng Group Limited (ASX:JLG) has a debt to equity ratio of 0.11021 and a Free Cash Flow to Debt ratio of 3.570798.  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 -1.30207.  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.  Johns Lyng Group Limited’s ND to MV current stands at -0.085546. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

After conducting extensive research and thoroughly combing through fundamentals and technicals, it may be time for the investor to make some tough buy or sell decisions. Investors may be keen to the notion that the frequency of being right in making decisions may not be as important as the magnitude of the correctness.

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 0.20091 for Johns Lyng Group Limited (ASX:JLG).  The one year Growth EBIT ratio stands at -0.02905 and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at 0.00795 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 0.16059.  The one year growth in Net Profit after Tax is -0.08532 and lastly sales growth was 0.06346.

Many new investors may be frantically researching the best way to study the stock market. It is hard to say with any certainty which approach will work out the best. Traders may tend to gravitate towards studying the technical, while longer-term investors may be more likely to use fundamental analysis. Of course, many individuals will opt to use a combination of both. Determining the individual risk tolerance and time horizon can play a big part in deciding which way to tackle the market. Short-term trading can be highly risky and may not be suitable for certain individuals. Long-term investing may be the favored way to get into the stock market, but this may vary from person to person. Investment strategies can range from super simple to ultra complex. The one thing that most stock market followers would agree on is that there is rarely any substitution for hard work, dedication, and putting in the required hours of study.