Should I say good bye to my WisdomTree Investments holdings?
 | By Vlad Skutelnik | Macroaxis Story |
WisdomTree Investments chance of financial distress is now about 37.0 percent. WisdomTree Investments maintains prevalent Real Value of $5.59 per share. The last-minute price of the organization is $5.13. At this time the organization appears to be undervalued. This module calculates value of WisdomTree Investments from examining the organization fundamentals such as Profit Margin of 1.46 , Return On Asset of 3.66 and Current Valuation of 1.06 B as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we encourage to purchase undervalued securities and to sell overvalued securities since at some point equities prices and their ongoing real values will grow together.
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Reviewed by Raphi Shpitalnik
The company has beta of 1.52. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, WisdomTree Investments will likely underperform. The firm dividends can provide a clue to current valuation of the stock. The entity one year expected dividend income is about $0.06 per share. The company has Profit Margin (PM) of 1.46 % which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 21.2 % which suggests for every 100 dollars of sales it generated a net operating income of 0.21.
How important is WisdomTree Investments's Liquidity
WisdomTree Investments financial leverage refers to using borrowed capital as a funding source to finance WisdomTree Investments ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. WisdomTree Investments 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 WisdomTree Investments' 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 WisdomTree Investments' 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 WisdomTree Investments's total debt and its cash.
Detailed Perspective On WisdomTree Investments
This firm reported previous year revenue of 267.36 M. Net Income was 2.86 M with profit before overhead, payroll, taxes, and interest of 136.3 M. The small decline in market price for the last few months may raise some interest from investors as it closed today at a share price of 5.13 on 567762.000 in trading volume. The company directors and management did not add much value to WisdomTree Investments investors in October. However, diversifying your holdings with WisdomTree Investments or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 2.6524. The current volatility is consistent with the ongoing market swings in October 2019 as well as with WisdomTree Investments unsystematic, company specific events. WisdomTree Investments is trading at 5.13. This is 2.84% down. Opened at 5.13. WisdomTree Investments Invested Capital Average is increasing over the last 5 years. The previous year value of WisdomTree Investments Invested Capital Average was 22,360,750. WisdomTree Investments Receivables is increasing over the last 5 years. Additionally, WisdomTree Investments Net Cash Flow Investment Acquisitions and Disposals is decreasing over the last 5 years. To conclude, we belive that WisdomTree Investments is currently undervalued with below average probability of bankruptcy in the next two years. Our current 'Buy/Hold/Sell' recommendation on the firm is Hold.
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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 WisdomTree Investments. Please refer to our Terms of Use for any information regarding our disclosure principles.