Exela Technologies (NASDAQ: XELA), a player in the Software - Application industry, has been navigating challenging financial waters, as evidenced by a net income applicable to common shares reported as a loss of 422.8M
and an income before tax also recorded as a loss of 411.4M
. Despite these figures, the company's operating margin stands at a modest 3.91%, suggesting some level of operational efficiency amidst the losses. Investors should note the stock's mean deviation of 3.68 and a standard deviation of 4.65, which point to high volatility, while the short ratio of 7.34 indicates that a significant number of shares are being shorted, potentially leading to a short squeeze if the company were to report positive news. The current last price of the stock is $3.86, hovering above its 52-week low of $2.59, which could attract investors looking for a potential upside, especially considering the stock's potential upside of 7.07%. However, with a negative return on assets of 1.92% and a Jensen Alpha of -0.24, indicating underperformance relative to the expected market return, investors should approach Exela Technologies with caution and a well-considered strategy.
The asset utilization ratio is a financial metric that indicates the amount of revenue generated for every dollar of assets a company has on its balance sheet. Exela Technologies reports an asset utilization ratio of 149.21 percent. This implies that the company generates $1.49 in revenue for every dollar of assets it owns. An increasing asset utilization ratio suggests that Exela Technologies is becoming more efficient in using its assets for day-to-day operations.
What is the right price you would pay to acquire a share of Exela Technologies? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance
is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor
What is happening with Exela Technologies this year
Annual and quarterly reports issued by Exela Technologies are formal financial statements
that are published yearly and quarterly and sent to Exela stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission
(SEC) for businesses owned by the public since 1934.
Companies such as Exela Technologies often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings
or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Exela Technologies Gross Profit
Exela Technologies Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Exela Technologies previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Exela Technologies Gross Profit growth over the last 10 years. Please check Exela Technologies' gross profit
and other fundamental indicators
for more details.
Is Exela a risky opportunity?
Let's check the volatility. Exela is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Exela (USA Stocks:XELA) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. taking in a share of an Exela Technologies stock makes you a part-owner of that company. The only certainty is that nothing is certain, as Pliny the Elder once observed.
This adage holds particularly true for Exela Technologies (NASDAQ: XELA), a company that operates in the volatile realm of IT services and software applications. With a current ratio of just **0.36X**, Exela's liquidity position is precarious, suggesting potential challenges in meeting short-term obligations. The firm's net income from continuing operations reflects substantial losses of **$415.6 million**, underscoring the financial difficulties it faces. Despite these concerns, the market has identified a potential upside of 7.07, with a target price set at $2, which could indicate some optimism for recovery. However, investors should be wary of the high probability of bankruptcy at 96.00%, and a Z-Score of -2.8, which further signal financial distress. Given these factors, while there may be room for gains, the risks associated with Exela Technologies are significant, and any investment should be approached with caution and thorough due diligence. .
Our take on today Exela Technologies rise
Exela Technologies' stock has seen a notable increase in value, despite the total risk alpha declining to -0.48. This figure suggests that the stock's performance is not meeting the expected return when adjusted for risk. The discrepancy implies that investors might be prioritizing other considerations, such as the company's recent strategic moves or potential market opportunities that Exela could exploit. While the negative total risk alpha should prompt caution among risk-averse investors, those with a penchant for speculation may view the current stock prices
as an appealing entry point. These investors are likely betting on Exela's potential to reverse its fortunes and achieve future growth, which could eventually bring the stock's performance in line with, or even exceed, the expected risk-adjusted return. Exela Technologies is characterized by very low volatility, with a skewness of 0.37 and a kurtosis of 0.06. Nonetheless, we recommend that investors conduct a thorough analysis of Exela Technologies' technical indicators to confirm that all market information is accounted for and reliable. Recognizing different market volatility
trends can often assist investors in timing their market entry and exit.
Effective use of volatility indicators allows traders to assess the risk associated with Exela Technologies' stock relative to market volatility during both bullish and bearish trends. The increased volatility that often accompanies bear markets can have a direct impact on Exela Technologies' stock price
, causing anxiety for investors as they observe a decline in the value of their shares. This situation typically compels investors to rebalance their portfolios by acquiring different stocks as prices drop. In conclusion, Exela Technologies has shown a promising uptick of over 6 percent, capturing the attention of investors. However, as we approach the Fiscal Year End in December, the question of sustainable growth remains. With an Analyst Overall Consensus leaning towards a 'Hold' and only one analyst maintaining this position, the market sentiment
does not yet signal a strong buy. The discrepancy between the Valuation Real Value of **$3.4** and the Valuation Market Value of **$3.86** suggests that while the stock may be slightly overvalued, the nearly identical Valuation Hype Value of $3.87 indicates that investor enthusiasm could be influencing the current price. Prudent investors should weigh these factors carefully before expecting a continued build-up in Exela's stock price. .
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