Ion Geophysical (NYSE:IO) continues to rise

Ion Geophysical Invested Capital Average is quite stable at the moment as compared to the past year. The company's current value of Invested Capital Average is estimated at 206.88 Million. Market Capitalization is expected to rise to about 113.9 M this year, although the value of Net Income Per Employee will most likely fall to (115.2 K). As many millenniums are excited about energy space, it is only fair to outline Ion Geophysical. We will check if it is still possible for Ion Geophysical to minimize net losses this year. This post is to show some fundamental factors affecting Ion Geophysical's products and services. I will also disclose how it may impact the investing outlook for Ion Geophysical in March.
Published over a year ago
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Reviewed by Rifka Kats

About 27.0% of the company shares are held by company insiders. Insiders ownership of Ion Geophysical refers to the amount of Ion Geophysical equity owned by Ion Geophysical officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of Ion Geophysical, including its current ownership diagnostics.

How important is ION Geophysical's Liquidity

ION Geophysical financial leverage refers to using borrowed capital as a funding source to finance ION Geophysical ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ION Geophysical 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 ION Geophysical's 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 ION Geophysical's 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 ION Geophysical's total debt and its cash.

A Deeper look at ION

The market capitalization of Ion Geophysical is $44.05 Million. Ion Geophysical secures significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Note, that even with negative profits, if the true value of the firm is larger than the current market value, you may still be able to generate positive returns on investment in this company.

Ownership Breakdown

Retail Investors
37.49%
Insiders
26.88%
Institutions
35.63%
Retail Investors37.49
Insiders26.88
Institutions35.63

Ion Geophysical implied volatility may change after the rise

Jensen alpha is down to 0.97. It may entail a possible volatility slide. Ion Geophysical exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Ion Geophysical individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Ion Geophysical future systematic risk.

Our Conclusion on Ion Geophysical

Whereas many of the other players within the oil & gas equipment & services industry are still a little expensive, even after the recent corrections, Ion Geophysical may offer a potential longer-term growth to institutional investors. Taking everything into account, as of the 13th of February 2021, our analysis shows that Ion Geophysical hyperactively responds to market trends. The company is overvalued and projects above average chance of financial distress for the next 2 years. Our ongoing 30 days buy-hold-sell recommendation on the company is Strong Hold.

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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 Ellen Johnson do not own shares of ION Geophysical. Please refer to our Terms of Use for any information regarding our disclosure principles.

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