Will Marin Software (NASDAQ:MRIN) be in financial trouble before February?

The upcoming quarterly report is expected on the 24th of February 2022. The stock is still going through an active upward rally. Marin Software Market Capitalization is quite stable at the moment as compared to the past year. The company's current value of Market Capitalization is estimated at 16.54 Million. Tangible Asset Value is expected to rise to about 45.9 M this year, although the value of Net Income Per Employee will most likely fall to (67.2 K). As many millenniums are trying to avoid technology space, it makes sense to outline Marin Software a little further and try to understand its current market patterns.
Published over a year ago
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Reviewed by Michael Smolkin

The company currently holds 6.54 M in liabilities with Debt to Equity (D/E) ratio of 0.13, which may suggest the firm is not taking enough advantage from borrowing.
The company secures a Beta (Market Risk) of 2.7115, which conveys a somewhat significant risk relative to the market. Let's try to break down what Marin'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, Marin Software will likely underperform. Even though it is essential to pay attention to Marin Software price patterns, it is always good to be careful when utilizing equity historical price patterns. Our philosophy towards estimating any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Marin Software exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Marin Software has an expected return of -1.21%. Please be advised to verify Marin Software value at risk, as well as the relationship between the skewness and day median price to decide if Marin Software performance from the past will be repeated at some point in the near future.
Marin Software financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Marin Software, including all of Marin Software'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 Marin Software assets, the company is considered highly leveraged. Understanding the composition and structure of overall Marin Software 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 Marin Total Debt

Marin Software liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Marin Software 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 Marin Software balance sheet include debt obligations and money owed to different Marin Software vendors, workers, and loan providers. Below is the chart of Marin main long-term debt accounts currently reported on its balance sheet.
You can use Marin Software financial leverage analysis tool to get a better grip on understanding its financial position

How important is Marin Software's Liquidity

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

Breaking down the case for Marin Software

Marin Software reported the previous year's revenue of 25.81 M. Net Loss for the year was (10.37 M) with profit before overhead, payroll, taxes, and interest of 12.57 M.

Asset Breakdown

23.4 M
Assets Non Current
21.2 M
Current Assets
Total Assets50.11 Million
Current Assets21.17 Million
Assets Non Current23.43 Million
Goodwill87,750

Our perspective of the latest Marin Software rise

Marin Software latest maximum drawdown surges over 26.65.
As of the 7th of January, Marin Software secures the risk adjusted performance of (0.18), and Mean Deviation of 3.87. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Marin Software, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for Marin Software, which can be compared to its peers in the industry. Please verify Marin Software variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Marin Software is priced some-what accurately, providing market reflects its recent price of 3.45 per share. Given that Marin Software has jensen alpha of (1.34), we recommend you to check Marin Software's last-minute market performance to make sure the company can sustain itself at a future point.

Our Final Take On Marin Software

Whereas other entities within the software—application industry are still a little expensive, even after the recent corrections, Marin Software may offer a potential longer-term growth to institutional investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor short any shares of Marin Software at this time. The Marin Software risk-reward trade off 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 Marin Software.

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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 Vlad Skutelnik do not own shares of Marin Software. Please refer to our Terms of Use for any information regarding our disclosure principles.

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