UK stock alert

UK

Afternoon Alert: Associated British Foods drops 3.0% on high volume 18 January 2018 14:43 GMT

NEWS BITES - EUROPE

Associated British Foods PLC (L:ABF) traded on heavy volume of 1.9 times average so far today while the price dropped GBX87.0 (or 3.0%) to trade at GBX2,770.0.

Current indications of bearish signals that support the trend in the unusual trading:

+ The negative 32.08 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The stock has underperformed 73% of the United Kingdom market over the past 6 months.

+ The price dropped 2.6% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Return on Equity 11.7% [22.0%]

+ Return on Capital Employed 13.3% [17.4%]

+ Return on Assets 7.2% [8.1%]

Note

Associated British Foods today is at a discount of 18.2% to the 12-month high of GBX3,387.0 on 20 Nov, 2017. It is at a premium of 18.6% to the 12-month low of GBX2,335.0 on 26 Jan, 2017.

Bullish Signals:

In the last three months the stock has hit a new 52-week high four times, pointing to an uptrend.

Interest cover is less leveraged at 19.6 times.

Total Liabilities/EBITDA of 2.7 is comfortably below the Joseph Piotroski benchmark of <5.

Tobin's Q Ratio is 1.9. Compared with the rest of the market the stock is undervalued.

Net Profit margin, EBIT margin and EBITDA margin are positive and have seen consecutive rises in recent years.

Associated British Foods PLC (L:ABF; LON:ABF; LN:ABF)

ISIN: GB0006731235

PermID: 4295894968

Source: www.BuySellSignals.com