Trading Corner: Focusing in on Shares of Estia Health Limited (ASX:EHE)

Traders may be closely watching the charts on shares of Estia Health Limited (ASX:EHE). The 12 month volatility number is currently at 54.544100. The 6 month volatility is 59.229500, and the 3 month is noted at 50.114200. Stock price volatility may be applied to help find changes in market trends. When markets become very volatile, this may point to a change in investor sentiment. Watching volatility levels in combination with other technical indicators may help investors discover important market information.

Traders tracking shares of Estia Health Limited (ASX:EHE) may be interested in the company’s FCF or Free Cash Flow Score. FCF may help gauge the financial performance of a stock. FCF is calculated by subtracting capital expenditures from operating cash flow. Presently, Estia Health Limited (ASX:EHE) has an FCF score of . The FCF score is calculated by combining free cash flow stability with free cash flow growth. Typically, a higher FCF score value would represent high free cash flow growth. The company currently has an FCF quality score of 2.055820. The free quality score helps estimate free cash flow stability. FCF quality is calculated as the 12 ltm cash flow per share over the average of the cash flow numbers. With this score, it is generally considered that the lower the ratio, the better.

Investors may be looking to test out different strategies as they attempt to maximize returns. Some investors may be watching price index ratios to help concoct trading ideas. Currently, Estia Health Limited’s 6 month price index is 0.58932. The six month price index is calculated by dividing the current share price by the share price six months ago. A ratio above one indicates an increase in share price over the period. A ratio below one shows that there has been a price decrease over the time period.

Focusing in a little closer, we can survey the Q.i. (Liquidity) Value. Estia Health Limited (ASX:EHE) has a present Q.i. value of 25.00000. This value ranks companies using EBITDA yield, FCF yield, earnings yield and liquidity ratios. The Q.i. value may help identify companies that may be undervalued. A higher value would indicate low turnover and a wider chance of shares being mispriced. A lower value may signal higher traded value meaning more analysts may follow the company leading to a lesser chance shares are priced incorrectly.

Investors may also be keeping a close eye on the Piotroski Score or F-Score. The F-score was developed by Joseph Piotroski who created a ranking scale from 0-9 to help determine the financial strength of a company. Estia Health Limited (ASX:EHE) currently has a Piotroski Score of 4. To get to this score, Piotroski assigned one point for every piece of criteria met out of the nine considered. In terms of profitability, one point was given if there was a positive return on assets in the current year, one point if operating cash flow was positive in the current year, one point for higher ROA in the current period compared to ROA for the previous year, and one point for cash flow from operations greater than ROA. In terms of leverage and liquidity, one point was given for a lower ratio of long term debt in the current period compared to the previous year, one point was given for higher current ratio compared to the previous year, and one point if no new shares were issued in the last year. In terms of operating efficiency, one point was given for higher gross margin compared to the previous year, and one point was given for a higher asset turnover ratio compared to the previous year. In general, a stock with a score of 8 or 9 would be considered strong while a stock with a score from 0-2 would be considered weak.

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