Advanced Emissions Solutions currently holds roughly 80.82
M in cash with 26
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.36, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Investing in Advanced Emissions, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Advanced Emissions along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Advanced Emissions' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Advanced Emissions. Your research has to be compared to or analyzed against Advanced Emissions' peers to derive any actionable benefits. When done correctly, Advanced Emissions' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Advanced Emissions.
How important is Advanced Emissions's Liquidity
Advanced Emissions
financial leverage refers to using borrowed capital as a funding source to finance Advanced Emissions Solutions ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Advanced Emissions financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Advanced Emissions' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Advanced Emissions' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Advanced Emissions's total debt and its cash.
Advanced Emissions Correlation with Peers
Investors in Advanced can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Advanced Emissions Solutions. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Advanced Emissions and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Advanced is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Advanced for more details
What is driving Advanced Emissions Investor Appetite?
Advanced Emissions appears to be moderately volatile, given 3 months investment horizon.
Advanced Emissions secures Sharpe Ratio (or Efficiency) of 0.0689, which signifies that the company had 0.0689% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-one
technical indicators for Advanced Emissions Solutions, which you can use to evaluate the future volatility of the firm. Please makes use of Advanced Emissions' Risk Adjusted Performance of 0.0329,
mean deviation of 3.4, and Downside Deviation of 5.0 to double-check if our risk estimates are consistent with your expectations.
Anything left for Advanced Emissions after the drop?
Newest Information Ratio is up to 0.01. Price may drop again. Advanced Emissions Solutions exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Advanced Emissions Solutions individually to make sure intended market timing strategies and available technical indicators are consistent with their estimates about Advanced Emissions future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Advanced Emissions' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Advanced Emissions' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Conclusion on Advanced Emissions
Whereas some other entities in the pollution & treatment controls industry are either recovering or due for a correction, Advanced Emissions may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the newest economy, it is better to hold off any trading of Advanced as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Advanced Emissions.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Advanced Emissions Solutions. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
