Is Aemetis (NASDAQ:AMTX) ready for a correction?

As many investors are getting excited about energy space, it is fair to break down Aemetis. We will check why this entity may not get much respect from investors given the current market uncertainty. Is Aemetis current valuation justified? We will cover the firm valuation to give you a better outlook on taking a position in the stock.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

The company currently holds 264.1 M in liabilities. Aemetis has a current ratio of 0.14, indicating that it has a negative working capital and may not be able to pay financial obligations when due.
Aemetis holds a performance score of 19 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of 1.4867, which signifies a somewhat significant risk relative to the market. Let's try to break down what Aemetis's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Aemetis will likely underperform. Although it is essential to pay attention to Aemetis historical returns, it is also good to be reasonable about what you can do with equity current trending patterns. Our philosophy towards foreseeing future potential of any stock is to look not only at its past charts but also at the business as a whole, including all available fundamental and technical indicators. To evaluate if Aemetis expected return of 4.65 will be sustainable into the future, we have found twenty-eight different technical indicators, which can help you to check if the expected returns are sustainable. Use Aemetis treynor ratio, as well as the relationship between the expected short fall and day median price to analyze future returns on Aemetis.
We determine the current worth of Aemetis using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Aemetis based exclusively on its fundamental and basic technical indicators. By analyzing Aemetis's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Aemetis's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Aemetis. We calculate exposure to Aemetis's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Aemetis's related companies.

Aemetis Investment Alerts

Aemetis investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Aemetis performance across your portfolios.Please check all investment alerts for Aemetis

Aemetis Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Aemetis value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Aemetis competition to find correlations between indicators driving the intrinsic value of Aemetis.

Aemetis Gross Profit

Aemetis Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Aemetis 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 Aemetis Gross Profit growth over the last 10 years. Please check Aemetis' gross profit and other fundamental indicators for more details.

Detailed Perspective On Aemetis

The entity reported the previous year's revenue of 180.33 M. Net Loss for the year was (28.8 M) with profit before overhead, payroll, taxes, and interest of 12.7 M.

Margins Breakdown

Aemetis profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Aemetis itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Aemetis profit margins.
EBITDA Margin(0.0558)
Gross Margin0.0659
Profit Margin(0.22)
Aemetis Average Assets is fairly stable at the moment. Further, Aemetis Earnings before Tax is fairly stable at the moment.

Over 3 percent rise for Aemetis. What does it mean for investors?

Current maximum drawdown is at 120.64. Aemetis is displaying above-average volatility over the selected time horizon. Investors should scrutinize Aemetis independently to ensure intended market timing strategies are aligned with expectations about Aemetis volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Aemetis' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Aemetis' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Perspective on Aemetis

While other entities under the oil & gas refining & marketing industry are still a bit expensive, Aemetis may offer a potential longer-term growth to investors. With a relatively neutral outlook on the current economy, it is better to hold off any trading of Aemetis as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Aemetis.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Aemetis. Please refer to our Terms of Use for any information regarding our disclosure principles.

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