Worldpay Stock Price and Research (NYSE: WP)

worldpay stock price worldpay research nyse wp 2

Worldpay (NYSE: WP) is a large cap company that operates within the IT services industry. Its market cap is $24 billion today and the total one-year return is 17.09% for shareholders.

Worldpay stock is underperforming the market. It’s beaten down, but it reports earnings soon. So is it a good time to buy? To answer this question we’ve turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.

Our system looks at six key metrics…

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✗ Earnings-per-Share (EPS) Growth: Worldpay reported a recent EPS growth rate of 32.56%. That’s below the IT services industry average of 125.17%. That’s not a good sign. We like to see companies that have higher earnings growth.

✗ Price-to-Earnings (P/E): The average price-to-earnings ratio of the IT services industry is 37.41. And Worldpay’s ratio comes in at 70.12. Its valuation looks expensive compared to many of its competitors.

✗ Debt-to-Equity: The debt-to-equity ratio for Worldpay stock is 769.23%. That’s above the IT services industry average of 114.80%. That’s not a good sign.

✗ Free Cash Flow per Share Growth: Worldpay has decreased its FCF per share over the last year relative to its competitors. That’s not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.

✗ Profit Margins: The profit margin of Worldpay comes in at 8.91% today. And generally, the higher, the better. We also like to see this ratio above competitors. Worldpay’s profit margin is below the IT services average of 13.39%. So that’s a negative indicator for investors.

✓ Return on Equity: Return on equity gives us a look at the amount of net income returned to shareholders. The ROE for Worldpay is 26.11% and that’s above its industry average ROE of 22.63%.

Worldpay stock passes one of our six key metrics today. That’s why our Investment U Stock Grader gives it a Sell.

Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That’s why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.

If you’re interested in finding Strong Buy stocks yourself, check out 3 Powerful Technical Indicators for Smarter Investing. We’ll show you how to eliminate emotional bias from your trading process with three powerful technical tools you can start using to boost your trading profits immediately. Click here to learn more.  …read more

Did Amazon Just Eat Walmart’s Lunch?

Walmarts Earnings Disaster

This post Did Amazon Just Eat Walmart’s Lunch? appeared first on Daily Reckoning.

Amazon upending brick and mortar retail is the worst-kept secret on Wall Street.

We all know how Jeff Bezos’ mall-crushing romp has forced investors to ditch vulnerable retail plays as the sector continues to slide.

But lately, we’ve seen signs of life from some well-established traditional retailers. The old-school stores that have successfully built their online offerings to compete with Amazon have held strong against the e-commerce king’s onslaught.

Walmart (NYSE:WMT) is one of these companies. The biggest brick and mortar retail operation in the country has maintained a healthy rivalry with Amazon over the past year. The company made all the right moves. It even bought e-commerce upstart Jet.com as part of a bigger campaign to boost its online footprint. If any retailer could go toe to toe with Amazon, it’s Walmart. The gloves were off…

Naturally, we were paying close attention as Walmart released earnings to kick off the short trading week.

The results weren’t pretty.

Walmart topped sales estimates. But the retailer shocked investors with a rare bottom-line whiff, posting earnings far below consensus estimates. The stock gapped down below $100 at the open and continued to drift lower. By the closing bell, Walmart shares had fallen more than 10%.

Before Tuesday’s drop, Walmart hadn’t gapped down 5% post-earnings since 2001, per Bespoke Investment Group. By midday, the stock was having its fourth-worst session since 1980.

The effects of Walmart’s plunge reverberated throughout the other big-box retailers. Target Corp. (NYSE:TGT) dropped 3%. Dollar General Corp. (NYSE:DG), which has mostly avoided Amazon’s wrath, also fell more than 3% on the day.

Despite yesterday’s disastrous performance, Walmart’s efforts aren’t a complete failure. The company finished the 2017 fiscal year with e-commerce sales growth of 40% — a huge boost for a massive commercial operation. But the brick and mortar retailer is now dealing with the growing pains of its online excursion.

The action we’re seeing in the stock is the result of fickle investors cashing out. They don’t want to wait around for Walmart’s plan to mature.

But I’m not ready to bury Walmart just yet. In fact, I believe the competition between Walmart and Amazon is just beginning to heat up — which should be good for shareholders of both stocks.

Just last month, we discussed how Walmart is ratcheting up its grocery operations. The mega discounter filed a new patent that looks to solve one of the biggest issues with online grocery shopping.

Walmart knows customers ordering groceries online don’t want bruised apples and wilted lettuce arriving at their homes. That’s why the company is developing a system that will allow its online customers to browse scanned images of actual fresh items and select which ones they want to buy. The venture could remove one of the biggest obstacles to the mass adoption of online grocery shopping, potentially giving Walmart a leg up over Amazon.

We’re less than a year removed from Amazon’s $14 billion Whole Foods acquisition. Yet despite slashing prices on everything …read more

Ray Blanco: “Blockchain Will Be as Profitable as the Internet Boom”

This post Ray Blanco: “Blockchain Will Be as Profitable as the Internet Boom” appeared first on Daily Reckoning.

The biggest blockchain stock explosion of 2018 is set to erupt, unleashing a tsunami of wealth for investors.

Blockchain stocks are just like bitcoin when it was first invented.

But while bitcoin has already matured, the demand for blockchain technologies has only just begun.

Any company investing heavily in blockchain technology will skyrocket as we watch the tech transform our technological landscape.

Emerging blockchain applications include securities exchanges, voting systems, cryptographically secure property registries, peer-to-peer insurance, supply chain management, smart contracts and anti-counterfeiting payment and remittance systems.

Blockchain tech touches everything!

Investing in blockchain today is like investing in internet stocks at the beginning of the tech boom.

The profits will be unbelievable!

Blockchain and Beyond

All major cryptocurrencies rely on blockchain networks to function.

But the future of blockchain technology will extend far beyond financial applications to include everything from big data to robotics and artificial intelligence.

It will be the most disruptive financial technology since the birth of the internet — and a road to huge profits for investors.

One company in particular is leading the pack as the most active corporate blockchain investor in the world.

The company is Tokyo-headquartered Softbank (OTCBB: SBTBY).

Softbank has identified blockchain as the foundation for a new era of technology and is investing heavily to establish a blockchain-based technological ecosystem.

This makes the stock a great way to play the explosive cryptocurrency and blockchain trend.

Softbank: One Step Ahead of The Rest

It isn’t surprising that Softbank is a great blockchain play.

As a fundamental technology, blockchain touches everything — and crypto is really hot in Japan.

In 2016, the company announced a contest to develop a decentralized fundraising platform built on blockchain.

Also in that year, SoftBank seeded an AI and cloud computing company called CloudMinds that uses blockchain to connect devices and robots to the cloud, as reported by Technode.com.

More recently, the company partnered with another startup to create a blockchain-based personal finance management system that it plans to market in 2019.

SoftBank is also heavily invested in the telecommunications industry including a partnership with Sprint to create blockchain solutions for that industry.

The telco consortium aims to create blockchain-based applications to help customers top up their services, create mobile wallets, remit funds and pay for roaming and IoT services.

On the back end, blockchain will be used to help telecommunications companies transact with each other faster and more securely, as reported in a recent Softbank press release.

Also last month, SoftBank led a $120 million round of investment into insurance startup Lemonade, as reported by Venturebeat.com.

Lemonade bills itself as the world’s first peer-to-peer home insurance company.

The company uses AI to underwrite policies and chat with policyholders, and it builds on blockchain to create algorithms to determine payout conditions and create smart contracts.

Insurance is a huge industry and by reducing overhead and improving service, Lemonade has the potential to be incredibly disruptive.

And this type of exposure to various blockchain applications is why Softbank is such a great play.

With Softbank, you get access …read more

SpaceX Investor: “We Can’t Find An Exit!”

Zach Scheidt

This post SpaceX Investor: “We Can’t Find An Exit!” appeared first on Daily Reckoning.

“Zach, our biggest challenge here is that there’s simply no way to exit!“

No, this wasn’t one of those “escape room” games where you try to solve clues to win the challenge.

This was a conversation with my new friend Chris — who has found himself trapped in an increasingly risky situation.

Fortunately for Chris, there’s help on the way.

And fortunately for you and me, that help could be very lucrative. That is, if you know how to jump in alongside Chris as new exit opportunities turn up…

A Private Problem Hindered By Regulations

I met my new friend Chris while doing work at Starbucks last week.

It all started when I heard him talking on the phone about Elon Musk and the SpaceX highly publicized rocket launch earlier this month. As it turned out, Chris is an investor in SpaceX and many other high-tech companies that are working on some amazing cutting edge projects.

You don’t normally just “bump into” investors in SpaceX at Starbucks.

That’s because SpaceX — and many of the other firms Chris is invested in — are private companies that are not listed on U.S. stock exchanges.

In order to buy a piece of these companies, you have to be invited to invest.

And by law, you must have a net worth in the tens of millions of dollars. So that narrows the playing field by a significant amount.

Chris works for a private equity investment firm that helps affluent investors find and invest in some of the hottest private companies. In particular, Chris focuses on firms developing new space technology — which is an intriguing and fast moving industry.

I could see the excitement in Chris’s eyes when he talked about some of the sci-fi sounding ideas that his companies were working on. But then when we started talking about numbers and the investment side of his business, that excitement turned into frustration.

“Many of the companies we’re investing in are finding huge breakthroughs…” Chris told me. “But even with these breakthroughs, it’s extremely challenging to find a way to sell part of our position and lock in a profit!”

In the past, investors like Chris would be able to lock in windfall profits when private companies listed shares on the New York Stock Exchange for regular investors like you and me to buy. This way, there would be a vibrant market for Chris and his investors to sell shares for lucrative profits.

“But today, no one wants to go public,” Chris said.

“There are too many regulations. It just doesn’t make sense! My companies would rather stay private forever than have to wade through all the red tape the SEC would throw at them.”

And that’s the sad truth… With today’s regulatory environment so strict, individual investors (who are supposed to be protected by these rules) are being shut out of exciting new opportunities. And private investors are less likely to help new startup companies because there is no exit available when they …read more

Strange Economic Data

 

Economic Activity Seems Brisk, But…

Contrary to the situation in 2014-2015, economic indicators are currently far from signaling an imminent recession. We frequently discussed growing weakness in the manufacturing sector in 2015 (which is the largest sector of the economy in terms of gross output) – but even then, we always stressed that no clear recession signal was in sight yet.

US gross output (GO) growth year-on-year, and industrial production (IP) – note that GO continues to be published with a lag of two quarters. As the upper half of the illustration shows, growth in manufacturing output turned negative in 2014 – 2015, while y/y growth in “all industries” GO fell to zero by Q3 2015. The lower half shows the culprit: the mining sector, which includes upstream oil and gas production. While the sector is small, it is very volatile and accounted for an uncommonly large share of capex due to the shale oil/fracking boom. This was confirmed by the action in credit spreads during this time period as well, as junk bond spreads exploded mainly due to a relentless sell-off in energy company debt in the wake of plunging oil prices. Although happy times are here again following the oil price recovery, GO has begun to weaken slightly again in Q1 and Q2 2017 (note: the surge in IP since then does not tell us much, as GO leads IP).

There are a number of “sine qua non” indicators, such as real gross private domestic investment, the Philly Fed’s US leading index, the ISM/PMI indexes, initial unemployment claims, the yield curve (here in the form of the 10 year minus 2 year spread), and the National Financial Conditions Index, which routinely provide early warning signals ahead of economic downturns.

In 2015 no clear recession signal was evident from these indicators and they are now even further removed from giving such a signal. The yield curve is a potential exception – it has flattened significantly throughout last year, and its recent upturn may be the beginning of a trend change toward steepening (it is still too early to tell). A sustained trend change traditionally constitutes a recession warning.

The Citigroup economic surprise index has turned down this year after rising  relentlessly in the second half of 2017. This indicates that economists have finally adjusted their expectations after a series of strong data releases, just as these data begin to weaken somewhat. If the current downtrend persists, it may become meaningful for stock and bond markets in the short to medium term (usually slightly negative for the former and positive for the latter).

The Citigroup economic surprise index has begun to turn down late last year (compares economic data releases to the average expectations of economists/analysts). This index is very volatile and rather short-term oriented. It may be worth watching now, as the recent stock market correction has led to wild gyrations in various positioning data.

And yet, even though economic activity in terms …read more

Dr. Jeffrey Kern: “Gold Stocks Will Break Dec 2016 Low”

TDG podcast_Image

Dr. Jeffrey M. Kern has been an academic clinical psychologist at Texas A&M University and the University of Nevada – Las Vegas since 1979, specializing in the measurement and prediction of human behavior.  

Born in New York City, Dr. Kern’s family suffered severe financial losses during the stock market decline of the mid-1970s and his small childhood savings were then ravaged by the inflation of the late 1970s, spurring him to spend years researching the prediction of the gold market. His subsequent 22 years of experience in trading the precious metals have been guided by his most profound discovery, the SKI indices.  

Although he has received various professional awards, including being named the 1998 Nevada Psychologist of the Year and serving as the Director of two doctoral programs in Clinical Psychology, his unique mathematical accomplishments in predicting the gold market have not, as yet, been recognized by the mainstream financial media or the societies for technical analysis. Dr. Kern’s most prominent assets are his wife of 30 years (Lisa) and his two sons (Joshua and Douglas). 

Prediction is the essence of science, and although financial publications regularly dismiss the possibility of predicting market movements, Dr. Kern’s ambition is to indisputably demonstrate the fallacy of such assertions. The ability to predict human behavior, evaluated via the objective and error-free measures of daily financial markets, is his intellectual and personal passion.  

He invites you to join him in his profitable, scientific, and personal journey.

Jeff’s Website, Subscription Information & Contact Info

SKI Gold Stocks

Subscription Information

Jeff’s Free Commentary Archive

Contact: jeff@skigoldstocks.com

…read more

US Equities – Retracement Levels and Market Psychology

 

Fibonacci Retracements  

Following the recent market swoon, we were interested to see how far the rebound would go. Fibonacci retracement levels are a tried and true technical tool for estimating likely targets – and they can actually provide information beyond that as well. Here is the S&P 500 Index with the most important Fibonacci retracement levels of the recent decline shown:

So far, the SPX has made it back to the 61.8% retracement level intraday, and has weakened a tad again since then. This is not yet conclusive evidence that this level will contain the rebound, but it is worth noting that the RSI made it back to just below 50 as well (the 40-50 area in the RSI is often an important demarcation in both bullish and bearish market phases). On the other hand, the decline has injected somewhat greater caution than was detectable previously (e.g. the VIX remains around the 20 level). That may help support a larger rebound; note also that the 200-dma serves as support, so an argument could be made that the decline was merely one of the periodic tests of this moving average. One should watch what happens if lower Fibo retracement levels, i.e., the 50% and 38% retracement are approached from above. According to Canadian technical analyst Ross Clark, statistics suggest that the 38% level must hold to maintain a positive bias. If it breaks, a retest of the lows becomes the minimum expectation.

A New Acronym to Remember – DART

We mentioned that we would occasionally talk about rarely discussed indicators and familiarize  readers with new acronyms, and here is one of them. Some of our readers may have seen this chart already, as it is slightly dated by now (it was first published by sentimentrader on January 18, prior to the market swoon). The acronym in question is DART, which stands for “daily average revenue trades” at two major discount brokerages, E-Trade and TD Ameritrade. Here is the chart:

The “DART” index of retail trader activity at two of the largest discount brokers as of January 18. We include this slightly dated chart because it shows how intense emotions were near the recent top. Such data are important in determining the potential importance of a market peak. In conjunction with all the other sentiment and positioning data we recently discussed, it suggests that it won’t be easy to overcome the January 2018 peak. If this peak cannot be overcome in a fairly short period of time, there will be only one way for the market to go, and that will no longer be up.

The importance of this burst of optimism near the top may be mitigated by a commensurate, rapid surge in fear upon a renewed decline. Whether that actually  happens remains to be seen. Keep in mind that the most important fundamental pillar supporting the rally – namely true money supply growth – has withered away dramatically since November 2016 and has reached levels historically associated with …read more

A Tale of Two Markets, Continued

This post A Tale of Two Markets, Continued appeared first on Daily Reckoning.

Political dysfunction in the United States is at an all-time high.

Republicans and Democrats are fighting pitched battles on immigration, Obamacare, tax cuts, regulation, infrastructure and just about every other major policy issue you can name. These fights are bitter, involve a lot of name-calling and show no signs of abating soon.

The stakes could not be higher. These policy fights are a prelude to the congressional elections in November 2018 when the entire House of Representatives is up for grabs. Right now the Republicans are in control, but a loss of 24 seats will put the Democrats in charge and hand the gavel over to Nancy Pelosi as the speaker of the House.

Once that happens, the impeachment of Donald Trump will begin within a matter of weeks.

In this toxic environment, it seems that Republicans and Democrats cannot find common ground on anything. It turns out that’s wrong; they can agree on something. More spending!

The Republicans have thrown in the towel and given up any pretense of being fiscally conservative. Republicans have joined forces with Democrats to eliminate budget caps on defense and domestic spending.

Entitlements were already out of control because they’re on budget auto-pilot and don’t require new appropriations or votes. Now even the budget items that were subject to votes are out of control.

The bad old days of $1 trillion annual government deficits of the Obama administration (2010, 2011, 2012) are back under a Republican administration. Of course, none of this spending is paid for, because the recent tax cuts already increased the deficit before the new spending spree took effect. Many economists try to find a silver lining by saying spending will be stimulative for the economy.

This is part of the “tale of two markets” narrative I relayed last week.

The first narrative could be called “Happy Days are here Again!” It’s being offered by much of the mainstream.

It goes like this: We’ve just had three quarters of above trend growth at 3.1%, 3.2% and 2.6% versus 2.13% growth since the end of the last recession in June 2009. The Federal Reserve Bank of Atlanta GDP forecast for the first quarter of 2018 is a stunning 5.4% growth rate.

This kind of sustained above-trend growth will be nurtured further by the Trump tax cuts. With unemployment at a 17-year low of 4.1%, and high growth, inflation will return with a vengeance.

This prospect of inflation is causing real and nominal interest rates to rise.

That’s to be expected because rates typically do rise in a strong economy as companies and individuals compete for funds. The stock market may be correcting for the new higher rate environment, but that’s a one-time adjustment. Stocks will soon resume their historic rally that began in 2009.

In short, the Happy Days scenario expects stronger growth, an improved fiscal position due to higher tax collections, higher interest rates, and stronger stock prices over time.

Don’t believe it.

We’re past the point of no return. With …read more

The Great Tug of War Behind Today’s Market

This post The Great Tug of War Behind Today’s Market appeared first on Daily Reckoning.

Our hold on reality dangles by a fraying thread… and the psychologist’s couch awaits.

The stock market is to blame.

Consider…

The recent correction was (at least in part) triggered by rising long-term interest rates.

Yields on the 10-year Treasury nicked 2.88% on Feb. 5 — a whisker from the 3% red line many feared could send stocks on a merry fall.

That is the point at which debt begins to weigh… and investors seek higher returns in the bond market.

But the 3% theory came in for hard sledding last Wednesday…

The 10-year yield glided right past 2.88% — all the way to 2.92% — and that much closer to the red line.

How did stocks take it?

With a hearty belly-laugh.

The Dow Jones ended last Wednesday 253 points higher.

The S&P closed 36 points higher; the Nasdaq 130.

Hence our psychic distress… hence our pending journey to the head shrinker.

As we noted in gobsmacked amazement:

Stocks roared even as 10-year yields eclipsed the mark that supposedly triggered last week’s sell-off… How could this be?

It “does not add up,” read analysis from One Bank, also floored.

Desperate for answers, we suggested that falling volatility — yes, falling volatility — may have won the day for stocks.

Stocks have leapt to record highs recently as volatility has sunk to record lows.

And for reasons likely technical in nature, VIX — Wall Street’s “fear gauge” — fell steadily last Wednesday.

It ended the day beneath 20… miles below the 38.8 spike that threw markets into retreat Feb. 5.

We even sucked a hypothesis out of our thumb as a result…

A tug of war between VIX and the 10-year yield may determine the course of the market this year.

If VIX stays below 20, stocks win.

If the 10-year yield crosses 3%, stocks lose.

We admit, our theory may contain a hole or two — or 327.

But we grope in darkness… as we must in these unlit days.

And our fragile psyche requires some explanation, some tethering to reality, however tenuous.

Today offered another experiment for our theory…

Ten-year Treasury yields spiked again this morning — briefly to 2.93% before settling around 2.90%.

Why?

The United States Treasury is floating a record $258 billion in government bonds this week.

Recall, Congress recently agreed to a spending resolution that raises federal outlays $300 billion over the next two years.

Also recall that Congress recently passed Trump’s tax cuts.

The result is what high-falutin men call a shortfall. And Uncle Sam needs to make the shortage good.

But with the new flood of bonds up for sale — and its implications — bond holders are demanding higher yields in compensation.

Reuters:

Analysts worry the combination of a rising budget deficit, faster inflation and more Fed rate increases have ratcheted up the risk of owning Treasuries.

Here is your explanation for today’s surging 10-year yield.

Did our VIX versus the bond market theory withstand the day?

Largely… yes.

The Dow Jones fell triple digits early in the day as 10-year yields swelled.

It ended the day down 255 points.

The S&P …read more

DineEquity Stock Owner Insight

DineEquity stock revenue

DineEquity stock had a great day in the market on Tuesday February 20. Shares jumped 19.64% and closed the day at $65.41. They’re now trading 3.46% below their 52-week high of $67.75.

With today’s big gain, DineEquity now has a market cap of $2 billion. That makes it a small cap company.

The business operates in the retail-restaurants industry and employs 960 people. Its shares trade primarily on the New York stock exchange.

DineEquity has 18 million shares outstanding and 2.87 million traded hands for the day. That’s above the average 30-day volume of 263,720 shares. The amount of DineEquity stock is also dropping as the company buys back its own shares. In the last 12 months, it repurchased $23 million worth.

Over the last five years, DineEquity’s revenue is down by -41.04%. You can see this drop in annual revenue chart below…

In the last year alone, DineEquity’s revenue has dropped by -6.92%. That’s not a good sign for DineEquity stockowners.

We like to invest in companies that grow their sales. A growing top line is a sign of a healthy business.

For now, DineEquity will continue to pull in revenue. So let’s take a closer look at the company’s total financial health. And the best way to do that is by looking at its balance sheet… DineEquity’s cash comes in at $118 million and the company’s debt is close to $1.5 billion…

DineEquity’s cash pile is smaller than its total debt. This is common for many companies. They can issue debt at a lower cost to take on new projects… but the debt to cash level is a bit high and is a concern for the business.

What is DineEquity Stock Worth?

Let’s look at a few key ratios to determine the value of DineEquity stock…

Price-to-Earnings (P/E): This ratio comes in at 16.01 for DineEquity. That’s a reasonable level. A high P/E ratio shows that investors are already expecting high earnings growth.

Dividend Yield: Stable business are able to reward shareholders by returning cash. DineEquity returns about 4%. The company has also increased its dividend consistently over the last five years.

These metrics are a good starting point in valuing a company. The ratios look reasonable for DineEquity but investors should analyze all aspects of the business.

The decline in revenue is a concern but investors have already factored that into the price they pay.

If you’re interested in finding Strong Buy stocks yourself, check out 3 Powerful Technical Indicators for Smarter Investing. We’ll show you how to eliminate emotional bias from your trading process with three powerful technical tools you can start using to boost your trading profits immediately. Click here to learn more. …read more

Sasol Stock Price and Research (NYSE: SSL)

sasol stock price sasol research nyse ssl 2

Sasol (NYSE: SSL) is a large cap company that operates within the chemicals industry. Its market cap is $23 billion today and the total one-year return is 23.32% for shareholders.

Sasol stock is beating the market, and it reports earnings soon. But does that make it a good buy today? To answer this question we’ve turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.

Our system looks at six key metrics…

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✗ Earnings-per-Share (EPS) Growth: Sasol reported a recent EPS growth rate of 53.57%. That’s below the chemicals industry average of 69.59%. That’s not a good sign. We like to see companies that have higher earnings growth.

✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the chemicals industry is 21.50. And Sasol’s ratio comes in at 13.88. It’s trading at a better value than many of its competitors.

✓ Debt-to-Equity: The debt-to-equity ratio for Sasol stock is 38.74%. That’s below the chemicals industry average of 65.30%. That’s a good sign. Sasol’s debt levels are not out of control.

✓ Free Cash Flow per Share Growth: Sasol has increased its FCF per share over the last year relative to its competitors. That’s good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.

✗ Profit Margins: The profit margin of Sasol comes in at 13.37% today. And generally, the higher, the better. We also like to see this ratio above competitors. Sasol’s profit margin is below the chemicals average of 14.17%. So that’s a negative indicator for investors.

✗ Return on Equity: Return on equity gives us a look at the amount of net income returned to shareholders. The ROE for Sasol is 9.73% and that’s below its industry average ROE of 22.65%.

Sasol stock passes three of our six key metrics today. That’s why our Investment U Stock Grader gives it a Hold.

Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That’s why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.

If you’re interested in finding Strong Buy stocks yourself, check out 3 Powerful Technical Indicators for Smarter Investing. We’ll show you how to eliminate emotional bias from your trading process with three powerful technical tools you can start using to boost your trading profits immediately. Click here to learn more.  …read more