Checking on current RSI levels on shares of Winpak Ltd (WIPKF), the 14-day RSI is currently standing at 76.43, pushing the stock into overbought territory. RSI is a momentum oscillator that moves in a range from 0 to 100. RSI is generally used to interpret whether a stock is overbought or oversold. With Winpak Ltd’s RSI above 70, traders should be wary of a potential pullback. Looking a bit closer at other RSI timeframes we can see the 7-day RSI is at 73.42 and the 3-day is at 63.88.
Now we’ll take a look at how the fundamentals are stacking up for Winpak Ltd (WIPKF). Fundamental analysis takes into consideration market, industry and stock conditions to help determine if the shares are correctly valued. Winpak Ltd currently has a yearly EPS of 1.59. This number is derived from the total net income divided by shares outstanding. In other words, EPS reveals how profitable a company is on a share owner basis.
Another ratio we can look at is the Return on Invested Capital or more commonly referred to as ROIC. Winpak Ltd (WIPKF) has a current ROIC of 15.52. ROIC is calculated by dividing Net Income – Dividends by Total Capital Invested.
Similar to ROE, ROIC measures how effectively company management is using invested capital to generate company income. A high ROIC number typically reflects positively on company management while a low number typically reflects the opposite.
Another key indicator that can help investors determine if a stock might be a quality investment is the Return on Equity or ROE. Winpak Ltd (WIPKF) currently has Return on Equity of 16.49. ROE is a ratio that measures profits generated from the investments received from shareholders.
In other words, the ratio reveals how effective the firm is at turning shareholder investment into company profits. A company with high ROE typically reflects well on management and how well a company is run at a high level. A firm with a lower ROE might encourage potential investors to dig further to see why profits aren’t being generated from shareholder money.
Turning to Return on Assets or ROA, Winpak Ltd (WIPKF) has a current ROA of 13.00. This is a profitability ratio that measures net income generated from total company assets during a given period. This ratio reveals how quick a company can turn it’s assets into profits. In other words, the ratio provides insight into the profitability of a firm’s assets. The ratio is calculated by dividing total net income by the average total assets.
A higher ROA compared to peers in the same industry, would suggest that company management is able to effectively generate profits from their assets. Similar to the other ratios, a lower number might raise red flags about management’s ability when compared to other companies in a similar sector.