Consumer Cyclicals-Small Companies Index

Monday, September 18, 2017: The share price index of the Consumer Cyclicals-Small Companies Index has declined by 45% relative to the Otos Total Market index since the July, 2011 high. Current relative price to sales is the lowest level in the record of the Index.

Last week the share price index of the Consumer Cyclicals-Small Companies Index advanced by 3.5% compared to a 4.1% advance for the Otos Total Market Index. Gaining stocks in the Consumer Cyclicals-Small Companies Index numbered 100 or 85.5% 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 Consumer Cyclicals-Small Companies Index.The Index capital weighted average sales growth rate is 3.9%. The proportion of Index market capital accounted for by rising sales growth companies is down to 52.7%, compared to 54.5% last quarter.

Currently, sales growth is low in the record of the Consumer Cyclicals-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 low and rising gross margin. Inventories are down, improving the chance of a further increase in the gross margin. SG&A expenses are low in the record of the Index and rising. That implies that the Index has limited scope for further cost containment and rising costs are slowing the EBITDA growth rate relative to sales. SG&A expenses are rising at a faster rate than the gross margin, producing a falling EBITDA 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.

Consumer Cyclicals-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 Consumer Cyclicals-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 10 15 20 25 30 35 40 45 Start of Line Chart =========== Points follow ... Line bump key Key ===== Key - Line Key - Line Price Index Gross Profit Margin