Brick Brewing Co. Limited (TSX:BRB) With Expected Sales Growth of -6.217% is a 0.0172 Target Weight Reasonable?

Brick Brewing Co. Limited (TSX:BRB) have seen a year over year change of sales growth of -6.217%.  The 87428 market value company based out of Canada is an important player in the Beverages sector.

While sales growth can be a key driver for a company’s stock performance, there are many other factors to consider as well.  Here we’ll take a look at several other notable indicators.

Investors may be searching for various types of stocks to help diversify the portfolio. Growth stocks include shares of companies that may have the possibility of generating higher than average profit growth and revenues. These companies tend to pump earnings back into the business, and they generally expand quicker than the overall economy. Although growth stocks can be a bit riskier, they can also provide a higher level of reward down the line. Cyclical stocks consist of companies that typically will ride the wave of the overall economy. These shares tend to perform well when the economy is doing well and perform poorer when the economy is faltering.

So how has Brick Brewing Co. Limited (TSX:BRB) performed in terms of returns?  The ROIC quality score stands at 3.86094 whilet he actual return on invested capital holds at  0.056009.  Brick Brewing Co. Limited’s book to market ratio is at 0.318975 while the book to market mean difference is -0.47554. This indicator tells you how a company is currently valued in terms of Book to Market compared to its average Book to Market over the past 10 years. It’s important to note that BM is the inverse of the Price to book ratio. Thus a high BM ratio means a company is undervalued.

In glancing at some key ratios we note that the Piotroski F-Score is at 4 (1 to 10 scale) and the ERP5 rank is at 10643. The Q.I. Value of Brick Brewing Co. Limited (TSX:BRB) currently reads 46 on the Quant scale. The Free Cash Flow score of -7.716309 is also swinging some momentum at investors. The Canada based firm is currently valued at 19.

Some other notable ratios include the Accrual Ratio of -0.061639, the Altman Z score of 3.449757, a Montier C-Score of 2 and a Value Composite rank of 56.

Debt

In looking at some Debt ratios, Brick Brewing Co. Limited (TSX:BRB) currently has a debt to equity ratio of 0.34434 and a Free Cash Flow to Debt ratio of 0.27952. This ratio gives insight as to how high the firm’s total debt is compared to its free cash flow generated. In terms of Net Debt to EBIT, that ratio stands at 5.37278. This ratio reveals how easily a firm is able to pay interest and capital on its net outstanding debt. The lower the ratio the better as that indicates that the company is able to meet its interest and capital payments. Lastly we’ll take note of the Net Debt to Market Value ratio. Brick Brewing Co. Limited’s ND to MV current stands at 0.086647. This ratio is calculated as follows: Net debt (Total debt minus Cash ) / Market value of the company.

Many investors are concerned with the proper portfolio diversification. Stock portfolio diversification entails spreading the investment dollars around to help minimize risk. When investors are creating a portfolio, they may be looking to add a combination of growth, value, income, dividend, and foreign stocks. They may also be spreading out stock picks among various industries. Keeping a mix of stocks that perform differently under certain market conditions can help keep the portfolio afloat when the environment shifts. Holding a few large positions in a small number stocks may lead to trouble if the market turns sour and stock prices decline drastically.

Brick Brewing Co. Limited (TSX:BRB) are showing an adjusted slope average of the past 125 and 250 days of -10.82104.  The Adjusted Slope 125/250d indicator is equal to the average annualized exponential regression slope, over the past 125 and 250 trading days, multiplied by the coefficient of determination (R2).  The purpose of this calculation is to provide a longer term average adjusted slope value that levels out large share price movements by using the average. This indicator is useful in helping find stocks that have been on a smooth upward trend over the past 6 months to a year.

Drilling down into some additional key near-term indicators we note that the Capex to PPE ratio stands at 0.239554 for Brick Brewing Co. Limited (TSX:BRB).  The Capex to PPE ratio shows you how capital intensive a company is. Stocks with an increasing (year over year) ratio may be moving to be more capital intensive and often underperform the market. Higher Capex also often means lower Free Cash Flow (Operating cash flow – Capex) generation and lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.

Many investors are concerned with the proper portfolio diversification. Stock portfolio diversification entails spreading the investment dollars around to help minimize risk. When investors are creating a portfolio, they may be looking to add a combination of growth, value, income, dividend, and foreign stocks. They may also be spreading out stock picks among various industries. Keeping a mix of stocks that perform differently under certain market conditions can help keep the portfolio afloat when the environment shifts. Holding a few large positions in a small number stocks may lead to trouble if the market turns sour and stock prices decline drastically.