Free Annual Reports
Empresa Nacional de Electricidad and More Big Movers in Utilities on September 20, 2012
It's been a bad day for the market after the morning's trading. The Nasdaq is trading down 0.3%; the S&P 500 is down 0.3%; and the Dow has decreased 0.1%. The utilities sector is a category of stocks for utilities such as gas and power. It contains companies such as electric, gas and water firms and integrated providers. Because utilities require significant infrastructure, these firms often carry large amounts of debt. With a high debt load, utilities companies become sensitive to changes in the interest rate. As interest rates rise or drop, the debt payments will increase or decrease. The utilities sector performs best when interest rates are falling or remain low.
Despite a bad day for the market overall so far, the Utilities sector (XLU) is up 0.1% and its biggest movers are currently:
Broker Summary: OptionsXpress Online Trading Platform
Slipping 4.1%, Companhia Energetica Minas Gerais (NYSE:CIG) is currently trading at $13.01 per share. The company's volume is currently 2.8 million shares. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move. A company's investment value can be estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The price/book value ratio, often expressed simply as "price-to-book", provides investors a way to compare the market value, or what they are paying for each share, to a conservative measure of the value of the firm. CIG's stock is trading for more than its book value with a P/B ratio of 1.74. It is important to take the company's debt into account when using the P/B ratio as debt can boost a company's liabilities to the point where they wipe out much of the book value of its hard assets, creating artificially high P/B values. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: How Buybacks Warps The Price-To-Book Ratio
Brookfield Infrastructure Partners (NYSE:BIP) is down 2.1% to reach $34.47 per share. So far today, the company's volume is 107,446 shares, consistent with its current daily average. As a stock moves up or down, it is important to pay attention to the trading volume. This indicates the level of interest: the higher the volume, the more the interest. Valuation ratios like the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield are useful in determining how attractive a potential or existing investment is. The dividend yield is calculated by dividing a company's dividends per share by its stock price. Dividend yield for BIP is 4.3%. High dividend yields are generally more important to value investors, investors in larger companies, and income oriented investors than they are to growth investors, investors in small cap stocks, and investors in new or emerging companies. SEE: Investment Valuation Ratios: Dividend Yield
Rising 1.9%, Huaneng Power International, Inc (NYSE:HNP) is currently trading at $28.43 per share. The company's volume for the day so far is 23,779 shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. The P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. HNP has a P/E ratio of 29.2, high compared to the industry average of 8.2. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Profit With The Power Of Price-To-Earnings
Empresa Nacional de Electricidad (NYSE:EOC) is currently trading at $48.58 per share, a 1.6% increase. The company's volume for the day so far is 29,561 shares, 0.3 times its average over the past three months. High volume indicates a lot of investor interest while low volume indicates the opposite. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The debt ratio shows the proportion of assets that a company is financing through debt. EOC's debt ratio is 59.6%. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.
CPFL Energia S.A (NYSE:CPL) has fallen 1.6% and is currently trading at $22.53 per share. The company's volume for the day so far is 95,496 shares. This is a sign that there will be less trading activity than there was yesterday. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement. In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. A price/sales ratio is derived by dividing stock market price by company sales. The P/S ratio for CPL is 1.67, which is relatively high. This could be a good sign if the share price increases. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
Inergy (NYSE:NRGM) has risen 1.5% to hit a current price of $23.90 per share. So far today, the company's volume is 8,023 shares, 0.1 times the average daily volume. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The capitalization ratio measures the debt component of the capital structure, or capitalization of a company (i.e., the sum of long-term debt liabilities and shareholder equity) to support operations and growth. The capitalization ratio for NRGM is 36.4%. The capitalization ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company's total capital base, which is the capital raised by shareholders and lenders.
After a decline of 1.3%, South Jersey Industries (NYSE:SJI) has hit a share price of $51.55. The company is currently trading a volume of 41,172 shares. A stock's volume conveys how excited investors are about it. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. SJI's D/E ratio is 84%. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. It is important to weigh current activity against historical performance when making any investment decisions. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
Despite a bad day for the market overall so far, the Utilities sector (XLU) is up 0.1% and its biggest movers are currently:
| Company | Market Cap | Percentage Change |
| Companhia Energetica Minas Gerais (NYSE:CIG) | $11.87 billion | -4.1% |
| Brookfield Infrastructure Partners (NYSE:BIP) | $5.02 billion | -2.1% |
| Huaneng Power International, Inc (NYSE:HNP) | $9.66 billion | +1.9% |
| Empresa Nacional de Electricidad (NYSE:EOC) | $13.39 billion | +1.6% |
| CPFL Energia S.A (NYSE:CPL) | $11.11 billion | -1.6% |
| Inergy (NYSE:NRGM) | $1.74 billion | +1.5% |
| South Jersey Industries (NYSE:SJI) | $1.62 billion | -1.3% |
Slipping 4.1%, Companhia Energetica Minas Gerais (NYSE:CIG) is currently trading at $13.01 per share. The company's volume is currently 2.8 million shares. Volume is an important indicator in technical analysis as it is used to measure the worth of a market move. If the markets have made a strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move. A company's investment value can be estimated using valuation ratios such as the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield. The price/book value ratio, often expressed simply as "price-to-book", provides investors a way to compare the market value, or what they are paying for each share, to a conservative measure of the value of the firm. CIG's stock is trading for more than its book value with a P/B ratio of 1.74. It is important to take the company's debt into account when using the P/B ratio as debt can boost a company's liabilities to the point where they wipe out much of the book value of its hard assets, creating artificially high P/B values. One problem with the P/B value ratio is that it can be difficult to calculate the true book value of a company, so investors should be aware that many measures of book value may provide only a rough estimate, and should be taken with a grain of salt. SEE: How Buybacks Warps The Price-To-Book Ratio
Brookfield Infrastructure Partners (NYSE:BIP) is down 2.1% to reach $34.47 per share. So far today, the company's volume is 107,446 shares, consistent with its current daily average. As a stock moves up or down, it is important to pay attention to the trading volume. This indicates the level of interest: the higher the volume, the more the interest. Valuation ratios like the price to earnings (P/E) ratio, the price to earnings growth (PEG) ratio, the price to sales (P/S) ratio, the price to book (P/B) ratio, and the dividend yield are useful in determining how attractive a potential or existing investment is. The dividend yield is calculated by dividing a company's dividends per share by its stock price. Dividend yield for BIP is 4.3%. High dividend yields are generally more important to value investors, investors in larger companies, and income oriented investors than they are to growth investors, investors in small cap stocks, and investors in new or emerging companies. SEE: Investment Valuation Ratios: Dividend Yield
Rising 1.9%, Huaneng Power International, Inc (NYSE:HNP) is currently trading at $28.43 per share. The company's volume for the day so far is 23,779 shares. If a stock price makes a big move up or down, volume lets us know the significance of that move. A wide array of ratios can be used by investors to estimate the attractiveness of a potential or existing investment and get an idea of its valuation. The P/E ratio has been used for ages by analysts and still remains one of the most relevant pieces of stock valuation. HNP has a P/E ratio of 29.2, high compared to the industry average of 8.2. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the price will need to drop. A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Profit With The Power Of Price-To-Earnings
Empresa Nacional de Electricidad (NYSE:EOC) is currently trading at $48.58 per share, a 1.6% increase. The company's volume for the day so far is 29,561 shares, 0.3 times its average over the past three months. High volume indicates a lot of investor interest while low volume indicates the opposite. When estimating the value of a particular investment, valuation ratios provide a good basis for assessing the value of an individual stock. The debt ratio shows the proportion of assets that a company is financing through debt. EOC's debt ratio is 59.6%. However, one thing to note with this ratio: it isn't a pure measure of a company's debt (or indebtedness), as it also includes operational liabilities, such as accounts payable and taxes payable.
CPFL Energia S.A (NYSE:CPL) has fallen 1.6% and is currently trading at $22.53 per share. The company's volume for the day so far is 95,496 shares. This is a sign that there will be less trading activity than there was yesterday. Price change alone is not enough to know how a stock is doing. Volume is an important secondary indicator used to confirm trends suggested by price movement. In making a decision about a potential or existing investment, valuation ratios are useful as a basis for seeing whether the stock price is too high, reasonable, or a bargain. A price/sales ratio is derived by dividing stock market price by company sales. The P/S ratio for CPL is 1.67, which is relatively high. This could be a good sign if the share price increases. All things being equal, a low P/S ratio is good news for investors, while a very high one can be a warning sign.
Inergy (NYSE:NRGM) has risen 1.5% to hit a current price of $23.90 per share. So far today, the company's volume is 8,023 shares, 0.1 times the average daily volume. If a stock is trading on low volume, then there is not much interest in the stock. On the other hand, if a stock is trading on high volume, then there is a lot of interest in the stock. Understanding investment valuation ratios allows an investor to assess the true value of an individual stock. The capitalization ratio measures the debt component of the capital structure, or capitalization of a company (i.e., the sum of long-term debt liabilities and shareholder equity) to support operations and growth. The capitalization ratio for NRGM is 36.4%. The capitalization ratio is one of the more meaningful debt ratios because it focuses on the relationship of debt liabilities as a component of a company's total capital base, which is the capital raised by shareholders and lenders.
After a decline of 1.3%, South Jersey Industries (NYSE:SJI) has hit a share price of $51.55. The company is currently trading a volume of 41,172 shares. A stock's volume conveys how excited investors are about it. Valuation ratios allow the investor to make a quick determination as to a company's investment value. The debt-equity (D/E) ratio is a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. SJI's D/E ratio is 84%. The D/E ratio is not a pure measurement of a company's debt because it includes operational liabilities in total liabilities.
The Bottom Line On any given day, a particular stock may see positive or negative change in its share price. It is important to weigh current activity against historical performance when making any investment decisions. Keep in mind that all these ratios should be compared against historical numbers and industry information in order to get a more complete picture.
by
Investopedia Staff
Investopedia.com believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.
Free Annual Reports
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=6ba76b4324b867362a0b33ddb5715ea2
