Neptune Wellness Solutions Inc. (TSX:NEPT) Momentum in Focus as Slope (125/250) Touches 76.60078

Shares of Neptune Wellness Solutions Inc. (TSX:NEPT) are showing an adjusted slope average of the past 125 and 250 days of 76.60078.  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. 

Investors may be searching for various types of stocks to help diversify the portfolio. Growth stocks include shares of companies that may have the possibility of generating higher than average profit growth and revenues. These companies tend to pump earnings back into the business, and they generally expand quicker than the overall economy. Although growth stocks can be a bit riskier, they can also provide a higher level of reward down the line. Cyclical stocks consist of companies that typically will ride the wave of the overall economy. These shares tend to perform well when the economy is doing well and perform poorer when the economy is faltering.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.143310 for Neptune Wellness Solutions Inc. (TSX:NEPT).  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. Neptune Wellness Solutions Inc. (TSX:NEPT)’s Cash Flow to Capex stands at -1.209972.

Debt

In looking at some Debt ratios, Neptune Wellness Solutions Inc. (TSX:NEPT) has a debt to equity ratio of 0.05026 and a Free Cash Flow to Debt ratio of -4.295645.  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 0.43002.  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.  Neptune Wellness Solutions Inc.’s ND to MV current stands at -0.010442. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Investor Target Weight

Neptune Wellness Solutions Inc. (TSX:NEPT) has a current suggested portfolio rate of 0.01220 (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 81.155100 (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 0.07473 for Neptune Wellness Solutions Inc. (TSX:NEPT).  The one year Growth EBIT ratio stands at -0.33947 and is a calculation of one year growth in earnings before interest and taxes.  The one year EBITDA growth number stands at which is calculated similarly to EBIT Growth with just the addition of amortization.

Many investors are concerned with the proper portfolio diversification. Stock portfolio diversification entails spreading the investment dollars around to help minimize risk. When investors are creating a portfolio, they may be looking to add a combination of growth, value, income, dividend, and foreign stocks. They may also be spreading out stock picks among various industries. Keeping a mix of stocks that perform differently under certain market conditions can help keep the portfolio afloat when the environment shifts. Holding a few large positions in a small number stocks may lead to trouble if the market turns sour and stock prices decline drastically.

Taking even a further look we note that the 1 year Free Cash Flow (FCF) Growth is at -0.77611.  The one year growth in Net Profit after Tax is -2.32291 and lastly sales growth was -0.11589.

Neptune Wellness Solutions Inc. (TSX:NEPT) of the Pharmaceuticals & Biotechnology sector closed the recent session at 6.630000 with a market value of $462868.

When conducting stock research, some investors will choose to start from the top-down while others may choose to begin from the bottom-up. Starting from the top-down typically includes studying the overall economy, industries, and multiple markets. Stocks tend to perform differently at certain points in economic cycles. Figuring out where the economy is can help find the sectors that will outperform. Once specific sectors are identified, investors might be able to then select certain stocks within those sectors. Investors who start with from the bottom-up may start by analyzing individual stocks first. This may include looking for stocks that are undervalued in relation to the perceived value of the company. Many investors will use a combination of both styles when undertaking detailed stock research.

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