Natus Medical Incorporated (NasdaqGS:BABY) Portfolio Weight of 0.03700 Encouraged by Quant Data

According to the latest data, Natus Medical Incorporated (NasdaqGS:BABY) has a current suggested portfolio ownership tally of 0.03700 (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 derived from 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 35.425400 (decimal).  This is the normal returns and standard deviation of the stock price over three months annualized. Looking further out, The 6-month volatility reading is 35.945600  and the 12 month is 37.199200.  

When it comes to trading stocks, even veteran investors are prone to making mistakes. Investors will often get bombarded with stock tips touting the next breakout star. Following these tips without fully looking into the situation can wind up being a huge mistake. If even one person knows about the next big stock, chances are many other people already do as well. Getting in too late on a stock that has already made a move can leave investors wondering what went wrong. Taking the time to properly research any stock investment may be a good way to eliminate costly impulse buys. Just because a stock has been running hot doesn’t mean it will continue to go higher in the future.

Natus Medical Incorporated (NasdaqGS:BABY) of the Health Care Equipment & Services sector closed the recent session at 25.380000 with a market value of $850728.

Taking look at some key returns data we can note the following:

So how has Natus Medical Incorporated (NasdaqGS:BABY) performed in terms of returns?  The ROIC quality score stands at 3.097104 whilet he actual return on invested capital holds at  0.063755.  Natus Medical Incorporated’s book to market ratio is at 0.468356 while the book to market mean difference is -0.05440. This indicator tells you how a company is currently valued in terms of Book to Market compared to its average Book to Market over the past 10 years. It’s important to note that BM is the inverse of the Price to book ratio. Thus a high BM ratio means a company is undervalued. Natus Medical Incorporated (NasdaqGS:BABY) has seen free cash flow growth of -0.649498 and has a free cash flow score of 0.045654.  Free Cash Flow Score (FCF Score) is a value that is calculated by combining Free cash flow growth with free cash flow stability. It thus gives you a combined indication of free cash flow quality.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.343691 for Natus Medical Incorporated (NasdaqGS:BABY).  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.

Stock market investing can be a wild ride. Following the market on a daily basis can be exiting, but it may also bring out strong emotions especially when hard earned money is on the line. Making impulsive stock picks based on day to day market fluctuations can cause second guessing and a lot of future portfolio damage. Investors who are able to create a specific plan and stick to that plan may find themselves in a much better position when the market becomes highly volatile. It can be very challenging to maintain discipline and focus with so much information being released every day. Highly publicized stocks can be a tempting choice as they tend to garner the most attention by media outlets and the investing community. Filtering through the endless sea of data can be exhausting, and investor’s who are able to see through the trees are typically better prepared to make those tough portfolio decisions.

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. Natus Medical Incorporated (NasdaqGS:BABY)’s Cash Flow to Capex stands at 4.193016.

Debt

In looking at some Debt ratios, Natus Medical Incorporated (NasdaqGS:BABY) has a debt to equity ratio of 0.26220 and a Free Cash Flow to Debt ratio of 0.240682.  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 3.79675.  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.  Natus Medical Incorporated’s ND to MV current stands at 0.056541. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Occasionally, investors will find themselves looking at an underperforming portfolio. Sometimes, this may be a case of the portfolio not being properly diversified. Investing too heavily in one stock or sector can cause the balance to tip the wrong way, especially if the overall market takes a downturn. Although there is no one way to protect against tough economic conditions, setting up the portfolio to withstand a prolonged sluggish period can help ease the mind of the investor when markets are in turmoil. Maintaining a large mix of different types of stocks may help the portfolio survive through rough patches down the line. 

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 0.67393 for Natus Medical Incorporated (NasdaqGS:BABY).  The one year Growth EBIT ratio stands at 0.31544 and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at 0.18071 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 0.71886.  The one year growth in Net Profit after Tax is 0.13019 and lastly sales growth was 0.05973.

50/200 Simple Moving Average Cross

Natus Medical Incorporated (NasdaqGS:BABY) has a 0.82595 50/200 day moving average cross value. Cross SMA 50/200 (SMA = Simple Moving Average) and is calculated as follows:

Cross SMA 50/200 = 50 day moving average / 200day moving average. If the Cross SMA 50/200 value is greater than 1, it tell us that the 50 day moving average is above the 200 day moving average (golden cross), indicating an upward moving share price.

On the other hand if the Cross SMA 50/200 value is less than 1, this shows that the 50 day moving average is below the 200 day moving average (a death cross), and tells us that share prices has fallen recently and may continue to do so.

Investors are constantly looking for ways to find success in the stock market. Figuring out what stocks to buy can be tough. With so many different names to choose from, the task can seem quite overwhelming at times. Many investors will opt to go with a mix of growth and value stocks. Investors looking to capitalize on shorter-term price movements may have a completely different game plan than those who are looking to fin stocks to hold onto for the longer-term. Finding quality stocks that match the individual’s criteria may take a lot of effort and dedication, but it may be well worth it for the long-term success of the portfolio.