Analyzing the fundamental drivers between SG Blocks and Insteel allows for a comparison of the impact of market volatilities on both companies' prices. This can help determine if combining them in a portfolio can diversify market risk. Pair trading strategies can also be utilized, matching a long position in Insteel with a short position in SG Blocks. For more information, refer to our pair correlation module.
Let's examine the assets. The asset utilization indicator measures the revenue earned for every dollar of assets a company reports. SG Blocks has an asset utilization ratio of 1791.65 percent, indicating that the company generates $17.92 for each dollar of assets. An increasing asset utilization suggests that SG Blocks is becoming more efficient in using its assets for daily operations.
Key Points
SG Blocks, a player in the Metal Fabrication industry, presents an intriguing investment opportunity with its potential for robust returns. The company's current ratio stands at
1.74X, indicating a healthy financial position with more than sufficient resources to cover its short-term liabilities. Furthermore, with a book value per share of
6.70X, the company's intrinsic value appears to be higher than its current market price. However, investors should also consider the company's high cost of revenue at
17.6M and its negative income tax expense, which represents a loss of
475.4K.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in SG Blocks. 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 SG Blocks, 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.
Watch out for price decline
Please consider monitoring SG Blocks on a daily basis if you are holding a position in it. SG Blocks is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as SG Blocks stock to be traded above the $1 level to remain listed. If SG Blocks stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is SG Blocks's Liquidity
SG Blocks
financial leverage refers to using borrowed capital as a funding source to finance SG Blocks ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. SG Blocks 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 SG Blocks' 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 SG Blocks' 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 SG Blocks's total debt and its cash.
SG Blocks Gross Profit
SG Blocks Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing SG Blocks 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 SG Blocks Gross Profit growth over the last 10 years. Please check SG Blocks'
gross profit and other
fundamental indicators for more details.
Breaking down SG Blocks Further
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
Now, let's check SG Blocks revenue. Based on the latest financial disclosure, SG Blocks reported 35.6
M of revenue.
This is 98.98% lower than that of the Machinery sector and 96.86% lower than that of the
Industrials industry. The revenue for all United States stocks is 99.62% higher than that of SG Blocks. As for Insteel Industries we see revenue of 649.19
M, which is 42.73% lower than that of the Industrials
| SGBX | 35.6 Million | 1.96 |
| Sector | 1.13 Billion | 62.34 |
| IIIN | 649.19 Million | 35.7 |
Every cloud has a silver lining, and SG Blocks may just be that unexpected opportunity for savvy investors. Despite a challenging financial landscape marked by a negative operating income of $11.6M and a high probability of bankruptcy at 94.45%, the company's potential upside of 24.11% and target price of $6 suggest a promising return. The firm's current ratio of 1.74X and debt to equity of 0.27% indicate a healthy financial position, which could potentially offset the risks. Furthermore, the company's stock is trading at a discount with a price to book ratio of 0.54X, making it an attractive investment for those willing to weather the storm. However, investors should tread carefully given the company's high kurtosis of 18.39, indicating a high level of risk..
Our perspective of the current SG Blocks rise
The recent decline in SG Blocks stock's standard deviation to 15.44 suggests a potential drop in volatility. This could be a positive indicator for investors seeking stability, as it implies less price fluctuation. Alongside SG Blocks' current upward trend, this reduced volatility could provide a more predictable and less risky investment environment. Hence, we maintain an optimistic view on SG Blocks amidst its ongoing rise. SG Blocks is exhibiting above-average volatility over the chosen time frame. Understanding varying market volatility trends can aid investors in market timing. Proper use of volatility indicators allows traders to gauge SG Blocks' stock risk against market volatility during both bullish and bearish trends.
The increased volatility associated with bear markets can directly affect SG Blocks' stock price, causing investor stress as share values drop. This often compels investors to rebalance their portfolios by purchasing different financial instruments as prices decline.In conclusion, SG Blocks presents a complex investment scenario. The company's Valuation Real Value stands at
3.96, significantly lower than its current Valuation Market Value of
5.28. This discrepancy, coupled with a high Valuation Hype Value of 4.82, suggests that the stock may be overvalued. Furthermore, the Analyst Overall Consensus leans towards a 'Strong Sell', with the lowest estimated target price being 5.46, which is below the naive expected forecast value of 5.69. However, the potential upside price of 21.42 indicates a significant potential for growth. Investors should tread carefully, considering the possible downside price of 0.0528, and thoroughly analyze the company's financials and market conditions before making a decision..
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of SG Blocks. Please refer to our
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