The road to success is often paved with challenges, and Creative Realities (NASDAQ: CREX) is no exception. With a current market cap of $44M and a revenue of $47.5M, the company operates in the competitive software application sector, primarily focusing on media services. Despite reporting a net income loss of 5.7M from continuing operations, the firm has shown resilience with an operating income of 1.3M. The stock's price-to-earnings ratio stands at a modest 7.95X, suggesting it may be undervalued relative to its earnings potential. However, investors should note the high probability of bankruptcy at 44.99% and a beta of 3.308, indicating significant volatility. With only 0.004% of shares shorted and a short ratio of 0.71, the market sentiment appears cautiously optimistic. As Creative Realities navigates its growth trajectory, potential investors should weigh these factors carefully. With the media landscape buzzing, let's take a closer look at Creative Realities and Farmers Edge as potential short-term investment opportunities. We'll explore the competitive strengths of both companies to see how they stack up against each other. This analysis could reveal some intriguing insights for investors looking to make informed decisions in this dynamic sector.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Creative Realities. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Creative Realities, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Creative Realities's Liquidity
Creative Realities
financial leverage refers to using borrowed capital as a funding source to finance Creative Realities ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Creative Realities financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Creative Realities' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Creative Realities' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Creative Realities's total debt and its cash.
Creative Realities Gross Profit
Creative Realities Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Creative Realities 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 Creative Realities Gross Profit growth over the last 10 years. Please check Creative Realities'
gross profit and other
fundamental indicators for more details.
What is driving Creative Realities Investor Appetite?
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Creative Realities revenue. Based on the latest financial disclosure, Creative Realities reported 45.17
M of revenue.
This is 98.89% lower than that of the Media sector and significantly higher than that of the
Communication Services industry. The revenue for all United States stocks is 99.52% higher than that of Creative Realities. As for Farmers Edge we see revenue of 36.17
M, which is much higher than that of the Communication Services
| Creative | 45.17 Million |
| Sector | 0.0 |
| Farmers | 36.17 Million |
"Buy low, sell high" is a mantra that resonates well with investors eyeing Creative Realities (NASDAQ: CREX) as it gears up for growth this September. With a current ratio of 1.04X, the company demonstrates a solid ability to cover its short-term liabilities, which is a positive sign for potential investors. Although Creative Realities reported a net income loss of 2.9 million, its total revenue stands at 45.2 million, indicating a robust operational foundation. The stock's typical price of 4.3 suggests it may be undervalued, especially considering its market capitalization of 43.98 million and a potential upside of 7.03%. As the software application industry continues to evolve, Creative Realities appears well-positioned to capitalize on emerging opportunities..
Will Creative continue to rise?
Creative Realities' stock has been quite volatile, currently showing a variance of 22.49. This means there are chances for both significant gains and potential losses. As the company works on its growth strategies, investors are left wondering if it can keep rising or if the volatility will cause a drop. It's essential for potential investors to stay updated on market trends and company developments. The stock's above-average volatility suggests that understanding market fluctuations can help investors make better decisions. In bear markets, this volatility can lead to sharp price drops, which may prompt investors to adjust their portfolios as they react to falling prices. Keeping a close watch on these factors will be key for anyone considering an investment in Creative Realities.
The Bottom Line
While some firms within the software—application industry are still a little expensive, even after the recent corrections, Creative Realities may offer a potential longer-term growth to investors. To conclude, as of the 14th of August 2024, our up-to-date 90 days buy-hold-sell recommendation on the company is
Strong Sell. However, we believe Creative Realities is currently
undervalued with
below average probability of bankruptcy for the next two years.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile 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 Vlad Skutelnik do not own shares of Creative Realities. Please refer to our
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