Graftech Stock Story

EAF -  USA Stock  

USD 8.13  0.12  1.45%

It looks like EnerSys will continue to recover much faster as its share price surged up 2.72% today to Graftech International's 19.0519%. While many traders are getting carried away by overanalyzing competition within industrials space, it is quite reasonable to digest both, Graftech International and EnerSys as potential shorter-term investments. We are going to discuss some of the competitive aspects of both Graftech and EnerSys.
Published over six months ago
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Is Graftech riskier than EnerSys (NYSE:ENS)?
By analyzing existing basic indicators between Graftech International and EnerSys, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in EnerSys with a short position in Graftech International. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Graftech International has an asset utilization ratio of 86.44 percent. This indicates that the company is making $0.86 for each dollar of assets. An increasing asset utilization means that Graftech International is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Graftech International's Liquidity

Graftech International financial leverage refers to using borrowed capital as a funding source to finance Graftech International ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Graftech International financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Graftech International's total debt and its cash.

How does Graftech utilize its cash?

To perform a cash flow analysis of Graftech International, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Graftech International is receiving and how much cash it distributes out in a given period. The Graftech International cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Graftech International Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 443.04 Million

Breaking down Graftech International Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Graftech International revenue. Based on the latest financial disclosure, Graftech International reported 1.26 B of revenue. This is 63.99% lower than that of the Industrials sector and significantly higher than that of the Electrical Equipment & Parts industry. The revenue for all United States stocks is 86.65% higher than that of Graftech International. As for EnerSys we see revenue of 3.09 B, which is much higher than that of the Electrical Equipment & Parts

Graftech1.26 Billion
EnerSys3.09 Billion
1.3 B
3.1 B

Graftech International implied volatility may change after the surge

Potential upside is down to 4.66. It may indicate a possible volatility dip. Graftech International currently demonstrates below-average downside deviation. It has Information Ratio of -0.02 and Jensen Alpha of -0.09. However, we advise investors to further question Graftech International expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Graftech International's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Graftech International's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Graftech International Implied Volatility

Graftech International's implied volatility exposes the market's sentiment of Graftech International stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Graftech International's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Graftech International stock will not fluctuate a lot when Graftech International's options are near their expiration.

Our Final Takeaway

Although some other companies under the electrical equipment & parts industry are still a bit expensive, Graftech International may offer a potential longer-term growth to shareholders. To conclude, as of the 5th of November 2021, we believe Graftech International is currently fairly valued. It actively responds to the market and projects average probability of distress in the next two years. Our latest 90 days buy-or-sell advice on the firm is Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Graftech International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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