July 13, 2019 at 9:38 am

With an Adjusted Slope of -4.05856, Is Event Hospitality & Entertainment Limited (ASX:EVT) On Investor’s List?

by

Shares of Event Hospitality & Entertainment Limited (ASX:EVT) are showing an adjusted slope average of the past 125 and 250 days of -4.05856.  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. 

The amount of financial information available to individual investors these days is staggering. Accumulating intelligence in the stock market is much easier to do than ever before. All the advances in technology have allowed regular investors to access information with relative ease. Making sense of all the various data can be overwhelming, but plowing through the data may create a solid foundation to start enhancing profits in the market. With so many investing options, traders and investors need to construct a plan that works specifically for them. Becoming educated about the stock market before tackling the beast might assist the individual investor in many ways. Studying how markets and prices move may help the investor decide which way is the best way to go. Understanding the difficulties and possible pitfalls that investors generally fall prey to, can go a long way in helping even before the first trade is ever made. As most investors know, the markets and economic landscapes are constantly changing. This requires the investor to be in tip top mental shape in order to confront tough buy or sell decisions when the time comes.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.122975 for Event Hospitality & Entertainment Limited (ASX:EVT).  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.

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. Event Hospitality & Entertainment Limited (ASX:EVT)’s Cash Flow to Capex stands at 1.126951.

Debt

In looking at some Debt ratios, Event Hospitality & Entertainment Limited (ASX:EVT) has a debt to equity ratio of 0.37539 and a Free Cash Flow to Debt ratio of 0.047049.  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 1.84597.  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.  Event Hospitality & Entertainment Limited’s ND to MV current stands at 0.170289. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Investor Target Weight

Event Hospitality & Entertainment Limited (ASX:EVT) has a current suggested portfolio rate of 0.04540 (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 24.306800 (decimal).  This is the normal returns and standard deviation of the stock price over three months annualized. 

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 -0.18457 for Event Hospitality & Entertainment Limited (ASX:EVT).  The one year Growth EBIT ratio stands at 0.10365 and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at 0.03554 which is calculated similarly to EBIT Growth with just the addition of amortization.

Investors often have to face the issue of risk when dealing with the stock market. Creating portfolios that have the largest probability of attaining personal goals might be the course of action for many investors. Realizing that risk is a large part of the investment process can help the investor think realistically. Although completely eliminating risk is not reasonable, taking steps to reduce risk with proper portfolio management is well within reach for any investor. When first starting out, investors may be tempted to follow strategies from friends or colleagues that have dabbled in the markets with some success. Although using someone else’s strategy could work, chances are that eventually each investor will need to tweak the process in order to maximize their chances for success. Often times these lessons may end up being learned the hard way. With proper planning and execution, the hope is that the investor will arm themselves with enough knowledge to avoid mistakes early on.

Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at -0.32837.  The one year growth in Net Profit after Tax is -0.04960 and lastly sales growth was 0.16214.

Event Hospitality & Entertainment Limited (ASX:EVT) of the Travel & Leisure sector closed the recent session at 12.500000 with a market value of $1401582.

As the markets continue to charge to new heights, investors may be trying to calculate where the markets will be moving in the next few months. Many market enthusiasts will be monitoring the current round of company earnings reports. A better than expected earnings period may help give the stock market another boost to even greater levels. At this point in time, investors may be a bit more cautious with stock selection. With so many names near all-time highs, investors may need to crunch the numbers to evaluate which stocks are still a good buy even at current price levels. Investors may also want to zoom out to the sector level and see if they can determine which sectors may be poised to outperform the overall market coming in to the second part of the year. Investors may also be looking at the overall economic conditions and striving to gain a sense of whether everything will align to keeping the bull run going.