What is November outlook for Izea (NASDAQ:IZEA)?

The upcoming quarterly report is expected on the 11th of November 2021. The stock is undergoing an active upward rally. Izea Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 33.7 Million. The current year Average Equity is expected to grow to about 24.4 M, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to (10.3 M). As many passive investors are finally getting excited about communication services space, Izea Inc could be a good starting point. Let's analyze the possibilities of Izea maintaining its debt level in November.
Published over a year ago
View all stories for IZEA | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Michael Smolkin

The company currently holds 2.01 M in liabilities with Debt to Equity (D/E) ratio of 0.06, which may suggest Izea is not taking enough advantage from borrowing. Izea Inc has a current ratio of 3.03, suggesting that it is liquid enough and is able to pay its financial obligations when due. The book value of the company was currently reported as 0.63. Izea Inc recorded a loss per share of 0.25. The entity had not issued any dividends in recent years. The firm had 1:40 split on the 11th of January 2016.
IZEA financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of IZEA, including all of IZEA's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of IZEA assets, the company is considered highly leveraged. Understanding the composition and structure of overall IZEA debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding IZEA Total Debt

IZEA Inc liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. IZEA Inc has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on IZEA balance sheet include debt obligations and money owed to different IZEA vendors, workers, and loan providers. Below is the chart of IZEA main long-term debt accounts currently reported on its balance sheet.
You can use IZEA Inc financial leverage analysis tool to get a better grip on understanding its financial position

How important is IZEA's Liquidity

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

What is driving IZEA Investor Appetite?

The entity reported the previous year's revenue of 18.33 M. Net Loss for the year was (10.25 M) with profit before overhead, payroll, taxes, and interest of 10.33 M.

Liabilities Breakdown

10.3 M
Current Liabilities
Long-Term Liabilities
Total Liabilities11.09 Million
Current Liabilities10.35 Million
Long-Term Liabilities645,531

Will Izea growth be viable after the rise?

The variance is down to 10.93 as of today. Izea Inc exhibits very low volatility with skewness of 0.29 and kurtosis of -0.09. However, we advise investors to further study Izea Inc technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Izea's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Izea's 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 Takeaway on Izea Investment

Whereas many of the other players under the internet content & information industry are still a bit expensive, Izea may offer a potential longer-term growth to investors. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 Izea.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

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 IZEA Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com