Otos Socially Responsible Index

Monday, September 18, 2017: The share price index of the Otos Socially Responsible Index has advanced by 9% relative to the Otos Total Market Index since the January, 2014 low. Current relative price to sales is near the lowest level in the record of the Index.

Last week the share price index of the Otos Socially Responsible Index advanced by 1.0% compared to a 4.1% advance for the Otos Total Market Index. Gaining stocks in the Otos Socially Responsible Index numbered 188 or 77.4% 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 238 of the 243 comparable record companies in the Otos Socially Responsible Index representing100% of the capital value. The Index capital weighted average sales growth rate is 8.2%. The proportion of Index market capital accounted for by rising sales growth companies is down to 57.4%, compared to 66.0% last quarter.

Currently, sales growth is low in the record of the Otos Socially Responsible 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 down, improving the chance of a future increase in the gross margin. SG&A expenses are low in the record of the Index, but falling. SG&A expenses are falling at a more rapid rate than the gross margin, producing a rising EBITDA margin. This is a poor quality growth trend to the extent that lower costs can insulate the bottom line from top line weakness for only a short time. The shares have been very highly correlated with the direction of the profit margins. 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.

Otos Socially Responsible 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 1.05 1.1 1.15 1.2 1.25 1.3 1.35 1.4 1.45 1.5 for X-axis labels 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Heading, subheading and footnotes ===== Heading Otos Socially Responsible 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 15 20 25 30 35 40 45 50 55 Start of Line Chart =========== Points follow ... Line bump key Key ===== Key - Line Key - Line Price Index Gross Profit Margin