If Cash Is King, Is Dixons Carphone plc (LSE:DC.)’s -0.08333 Enough?

Dixons Carphone plc (LSE:DC.) has seen year over year cash flow change of -0.08333.  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.

When conducting stock analysis, investors have a wide array of various classifications to choose from. Growth stocks generally have the potential to produce above average profit growth and revenues. These types of stocks tend to expand quicker than the economy as a whole. Investors also have the option of adding cyclical stocks to the portfolio. Cyclicals are generally companies whose earnings and sales are highly correlated with that of the overall economy. When the economy is doing well, cyclical stocks may be more in favor. Investors may decide to go in another direction when the economy is dragging. When an economic downturn is underway, investors may choose to select defensive stocks. These types of stocks generally stand up well during down periods based on their insulation from the business cycle. Investors also have the option of purchasing foreign stocks to help add some diversity to the portfolio. 

In taking a look at some other key growth stats we note that the one year Growth EBIT ratio stands at -0.33871 for Dixons Carphone plc (LSE:DC.) and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at -0.27866 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 -0.09419. The one year growth in Net Profit after Tax is -2.92771 and lastly sales growth was -0.00931.

Dixons Carphone plc (LSE:DC.) has a present suggested portfolio ownership rate of 0.02960 (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 32.965200 (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 0.601449 for Dixons Carphone plc (LSE:DC.). 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.

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Once the investor has calculated risk and decided on a suitable time horizon, they may be wondering how to best start doing research on particular stocks and the market in general. Working from the top and filtering down, investors may start by studying the overall economy, specific industries, and other markets. Economic trends can have an influence on company earnings, and it is generally beneficial to be aware of what is going on locally and around the globe. Individual investors may decide that they want to start from the bottom and work their way up. This may involve studying specific stocks and looking for ones that are strong, cheap, and solidly performing on the earnings front. Some individuals will combine both methods with the goal of understanding all aspects that could possibly affect the stock market.

In looking at some key ratios we note that the Piotroski F Score stands at 4 (1 to 10 scale) and the ERP5 rank holds steady at 130. The Q.I. Value of Dixons Carphone plc (LSE:DC.) currently reads 6.00000 on the Quant scale. The Free Cash Flow score of 0.601973 is also swinging some momentum at investors. The Great Britain based firm is currently valued at 3097.

Some other notable ratios include the Accrual Ratio of -0.330079, the Altman Z score of 2.407779, a Montier C-Score of 3.00000 and a Value Composite rank of 12.

Investing in the stock market can be highly challenging. Most investors have the same intentions of trying to maximize profits from investment capital. Realizing that there are many unknowns in the market, investors will need to make sure that they are constantly staying on top of the current economic scene. As most investors know, the market can see big shifts on a daily basis. Being able to deal with the constant ups and downs can be a huge asset to the individual investor’s psyche. Because stock market investing can get highly emotional at times, investors often have to find a way to keep a clear head and make the best possible decisions even when the market terrain gets rocky. Many successful investors have created a plan that they have been able to adhere to through the thick and thin. 

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. Dixons Carphone plc (LSE:DC.)’s Cash Flow to Capex stands at 1.722892.

Investing in the stock market can be highly challenging. Most investors have the same intentions of trying to maximize profits from investment capital. Realizing that there are many unknowns in the market, investors will need to make sure that they are constantly staying on top of the current economic scene. As most investors know, the market can see big shifts on a daily basis. Being able to deal with the constant ups and downs can be a huge asset to the individual investor’s psyche. Because stock market investing can get highly emotional at times, investors often have to find a way to keep a clear head and make the best possible decisions even when the market terrain gets rocky. Many successful investors have created a plan that they have been able to adhere to through the thick and thin.