American Mutual Fund Manager Performance Evaluation

CMLFX
 Fund
  

USD 51.51  0.16  0.31%   

The fund shows a Beta (market volatility) of 0.0572, which signifies not very significant fluctuations relative to the market. Let's try to break down what American's beta means in this case. As returns on the market increase, American Mutual returns are expected to increase less than the market. However, during the bear market, the loss on holding American Mutual will be expected to be smaller as well. Although it is important to respect American Mutual historical returns, it is better to be realistic regarding the information on the equity's current trending patterns. The philosophy in foreseeing future performance of any fund is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing American Mutual technical indicators, you can presently evaluate if the expected return of 0.0928% will be sustainable into the future.
  
American Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in American Mutual are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, American Mutual is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.
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American Price Channel

Fifty Two Week Low46.39
Fifty Two Week High53.72
Trailing Annual Dividend Yield1.84%

American Mutual Relative Risk vs. Return Landscape

If you would invest  4,898  in American Mutual on May 19, 2022 and sell it today you would earn a total of  269.00  from holding American Mutual or generate 5.49% return on investment over 90 days. American Mutual is currently producing 0.0928% returns and takes up 1.0189% volatility of returns over 90 trading days. Put another way, 8% of traded mutual funds are less volatile than American, and 99% of all traded equity instruments are likely to generate higher returns over the next 90 trading days.
  Daily Expected Return (%)  
       Risk (%)  
Assuming the 90 days horizon American Mutual is expected to generate 1.64 times less return on investment than the market. But when comparing it to its historical volatility, the company is 1.16 times less risky than the market. It trades about 0.09 of its potential returns per unit of risk. The DOW is currently generating roughly 0.13 of returns per unit of risk over similar time horizon.

American Mutual Current Valuation

Fairly Valued
Today 51.51
Please note that American Mutual's price fluctuation is very steady at this time.
American Mutual shows a prevailing Real Value of $50.89 per share. The current price of the fund is $51.51. At this time, the entity appears to be fairly valued. We determine the value of American Mutual from analyzing fund fundamentals and technical indicators as well as its Probability Of Bankruptcy. In general, we favor acquiring undervalued mutual funds and dropping overvalued mutual funds since, at some point, mutual fund prices and their ongoing real values will blend.
Our valuation method for American Mutual is useful when determining the fair value of the American mutual fund, which is usually determined by what a typical buyer is willing to pay for full or partial control of American Mutual. Since American Mutual is currently traded on the exchange, buyers and sellers on that exchange determine the market value of American Mutual Fund. However, American Mutual's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
50.89
Real Value
51.91
Upside
Estimating the potential upside or downside of American Mutual helps investors to forecast how American mutual fund's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of American Mutual more accurately as focusing exclusively on American Mutual's fundamentals will not take into account other important factors:
Hype
Prediction
LowEstimated ValueHigh
50.5251.5452.56
Details

American Mutual Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for American Mutual's investment risk. Standard deviation is the most common way to measure market volatility of mutual funds, such as American Mutual, and traders can use it to determine the average amount a American Mutual's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.0911

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Estimated Market Risk
 1.02
  actual daily
 
 8 %
of total potential
 
88
Expected Return
 0.09
  actual daily
 
 1 %
of total potential
 
11
Risk-Adjusted Return
 0.09
  actual daily
 
 6 %
of total potential
 
66
Based on monthly moving average American Mutual is performing at about 6% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of American Mutual by adding it to a well-diversified portfolio.

About American Mutual Performance

To evaluate American Mutual Mutual Fund as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when American Mutual generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare American Mutual Fund's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand American Mutual market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents American's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
The investment seeks current income, growth of capital and conservation of principal. American Mutual is traded on NASDAQ Exchange in the United States.

Things to note about American Mutual

Checking the ongoing alerts about American Mutual for important developments is a great way to find new opportunities for your next move. Mutual Fund alerts and notifications screener for American Mutual help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

American Mutual Alerts

Equity Alerts and Improvement Suggestions

American Mutual is unlikely to experience financial distress in the next 2 years
The fund holds about 9.33% of its assets under management (AUM) in cash
Continue to Trending Equities. Note that the American Mutual information on this page should be used as a complementary analysis to other American Mutual's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

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When running American Mutual price analysis, check to measure American Mutual's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Mutual is operating at the current time. Most of American Mutual's value examination focuses on studying past and present price action to predict the probability of American Mutual's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move American Mutual's price. Additionally, you may evaluate how the addition of American Mutual to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between American Mutual's value and its price as these two are different measures arrived at by different means. Investors typically determine American Mutual value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Mutual's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.