Basic Industry-Small Companies Index

Monday, September 18, 2017: The share price index of the Basic Industry-Small Companies Index has advanced by 4% relative to the Otos Total Market Index since the January, 2016 low. Current relative price to sales is at the lower-end of the range in the record of the Index.

Last week the share price index of the Basic Industry-Small Companies Index advanced by 2.8% compared to a 4.1% advance for the Otos Total Market Index. Gaining stocks in the Basic Industry-Small Companies Index numbered 69 or 80.2% of the Index total compared to a 36.0% gaining stocks frequency across the 3979 stocks in the Otos U.S. stocks universe.

We have collected second quarter sales data for all of the comparable record companies in the Basic Industry-Small Companies Index.The Index capital weighted average sales growth rate is 1.0%. The proportion of Index market capital accounted for by rising sales growth companies is down to 72.3%, compared to 72.4% last quarter.

Currently, sales growth is low in the record of the Basic Industry-Small Companies Index but higher than last quarter.

The proportion of total market capital accounted for by rising gross profit margin companies is up to 70.0% compared to 64.9% last quarter.

The Index is recording a falling gross margin. Inventories are up, diminishing the chance of a further increase in the gross margin. SG&A expenses are high in the record of the Index, but rising. That implies that the Index may be capable of accelerating EBITDA relative to sales with lower costs, but has yet to achieve a cost reduction. Lower gross margins and higher SG&A expenses are producing a deceleration in EBITDA relative to sales. The shares have been correlated with the direction of the EBITDA profit margin. Interest costs are low in the record of the Index and rising. Higher interest costs not only slow the free cash flow growth rate of the Index, but are often associated with lower valuation.

Basic Industry-Small Companies SharpPlot version is 2.43 Paint the paper ===== Border ===== Region ===== X-Axis Ticks ===== X-Axis tickmarks Y-Axis Ticks ===== Y-Axis tickmarks Axes ===== Y-axis labels 1 1.5 2 3 for X-axis labels 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Heading, subheading and footnotes ===== Heading Basic Industry-Small Companies Subheading Gross Profit Margin vs Stock Price Index Footnotes Comment Start of Line Chart =========== Points follow ... Line Y-Axis Ticks ===== Y-Axis tickmarks Axes ===== Y-axis labels 8 10 12 14 16 18 20 22 24 26 28 30 32 34 Start of Line Chart =========== Points follow ... Line bump key Key ===== Key - Line Key - Line Price Index Gross Profit Margin