A recent look at ownership and volatility brings us to a 0.01520 target portfolio weight (as a decimal) for Spark Therapeutics, Inc. (NasdaqGS:ONCE) Target weight is the volatility adjusted recommended stock position size for a position 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. If a stock has been more volatile of late, the lower the target weight will be. The 3-month volatility stands at 77.488500 (decimal). This is the normal returns and standard deviation of the stock price over three months annualized.
Investors may be trying to gauge the current business cycle phase and how that could potentially impact the portfolio. Business cycles can be one way to analyze portfolio performance. Early on in the cycle, profits tend to grow rapidly, sales tend to improve, and activity rebounds. In the middle of a cycle, growth may be peaking, strong credit growth may still be seen, and policy may swing neutral. Toward the later stages, growth may be moderate, earnings may come under pressure, and credit may tighten. Heading into a period of recession, credit may completely dry up, profits may decline sharply, and there may be policy easing. Investors will often have to adjust portfolio holdings that reflect the current state of a business cycle.
Spark Therapeutics, Inc. (NasdaqGS:ONCE) of the Pharmaceuticals & Biotechnology sector closed the recent session at 44.990000 with a market value of $1690343.
Taking look at some key returns data we can note the following:
Spark Therapeutics, Inc. (NasdaqGS:ONCE) has Return on Invested Capital of -1.751639, with a 5-year average of -1.450808 and an ROIC quality score of -1.381650. Why is ROIC important to potential investors? It’s one of the most fundamental metrics in determining the value of a firm’s shares. It helps potential investors determine if the company is using it’s invested capital to return profits.
Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.153745 for Spark Therapeutics, Inc. (NasdaqGS:ONCE). 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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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. Spark Therapeutics, Inc. (NasdaqGS:ONCE)’s Cash Flow to Capex stands at -6.798239.
Debt
In looking at some Debt ratios, Spark Therapeutics, Inc. (NasdaqGS:ONCE) has a debt to equity ratio of 0.06059 and a Free Cash Flow to Debt ratio of -2.328734. 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 2.95574. 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. Spark Therapeutics, Inc.’s ND to MV current stands at -0.361973. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.
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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 -0.42679 for Spark Therapeutics, Inc. (NasdaqGS:ONCE). The one year Growth EBIT ratio stands at 0.21882 and is a calculation of one year growth in earnings before interest and taxes. The one year EBITDA growth number stands at 0.21498 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 -0.46823. The one year growth in Net Profit after Tax is -0.52542 and lastly sales growth was 1.46361.
50/200 Simple Moving Average Cross
Spark Therapeutics, Inc. (NasdaqGS:ONCE) has a 0.78871 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.
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