Is Cepton Stock a Good Investment?
Cepton Investment Advice | CPTNW |
- Examine Cepton's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Cepton's leadership team and their track record. Good management can help Cepton navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact Cepton's business and its evolving consumer preferences.
- Compare Cepton's performance and market position to its competitors. Analyze how Cepton is positioned in terms of product offerings, innovation, and market share.
- Check if Cepton pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Cepton's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Cepton Inc stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Cepton Inc is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Insignificant | Details | |
Volatility | Out of control | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | High | Details | |
Economic Sensitivity | Very regressive towards the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Not Available | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Cepton Stock
Researching Cepton's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company recorded a loss per share of 0.9. Cepton Inc had not issued any dividends in recent years.
To determine if Cepton is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Cepton's research are outlined below:
| Cepton Inc is way too risky over 90 days horizon | |
| Cepton Inc has some characteristics of a very speculative penny stock | |
| Cepton Inc appears to be risky and price may revert if volatility continues | |
| Cepton Inc has a very high chance of going through financial distress in the upcoming years | |
| The company reported the revenue of 13.06 M. Net Loss for the year was (48.55 M) with profit before overhead, payroll, taxes, and interest of 0. | |
| Cepton Inc has accumulated about 16.1 M in cash with (35.52 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.45, which can makes it an attractive takeover target, given it will continue generating positive cash flow. | |
| Cepton Inc has a poor financial position based on the latest SEC disclosures |
Cepton's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.64) | (0.67) | |
| Return On Capital Employed | (0.73) | (0.77) | |
| Return On Assets | (0.64) | (0.67) | |
| Return On Equity | (0.80) | (0.76) |
Determining Cepton's profitability involves analyzing its financial statements and using various financial metrics to determine if Cepton is a good buy. For example, gross profit margin measures Cepton's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Cepton's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Cepton's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Cepton Inc. Check Cepton's Beneish M Score to see the likelihood of Cepton's management manipulating its earnings.
Evaluate Cepton's management efficiency
The company has return on total asset (ROA) of (0.2711) % which means that it has lost $0.2711 on every $100 spent on assets. This is way below average. Similarly, it shows a return on equity (ROE) of (0.4491) %, meaning that it generated substantial loss on money invested by shareholders. Cepton's management efficiency ratios could be used to measure how well Cepton manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to -0.67 in 2024. Return On Capital Employed is likely to drop to -0.77 in 2024. At this time, Cepton's Total Assets are fairly stable compared to the past year. Other Current Assets is likely to climb to about 1.8 M in 2024, whereas Return On Tangible Assets are likely to drop (0.67) in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 3.84 | 4.03 | |
| Tangible Book Value Per Share | 3.84 | 4.03 | |
| Enterprise Value Over EBITDA | (0.20) | (0.21) | |
| Price Book Value Ratio | 0.82 | 0.78 | |
| Enterprise Value Multiple | (0.20) | (0.21) | |
| Price Fair Value | 0.82 | 0.78 | |
| Enterprise Value | 9.7 M | 9.2 M |
Leadership effectiveness at Cepton Inc is a strong indicator of its financial stability. We analyze various metrics to provide insights into the stock's investment viability.
Beta 0.082 |
Basic technical analysis of Cepton Stock
As of the 26th of November, Cepton shows the Downside Deviation of 10.66, risk adjusted performance of 0.0738, and Mean Deviation of 8.41. Cepton Inc technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Cepton Inc coefficient of variation, maximum drawdown, as well as the relationship between the Maximum Drawdown and skewness to decide if Cepton Inc is priced correctly, providing market reflects its regular price of 0.01 per share. As Cepton Inc appears to be a penny stock we also recommend to validate its total risk alpha numbers.Cepton's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Cepton insiders, such as employees or executives, is commonly permitted as long as it does not rely on Cepton's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Cepton insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Mark McCord over three months ago Disposition of 10000 shares by Mark McCord of Cepton at 1.17 subject to Rule 16b-3 | ||
Jun Pei over six months ago Disposition of 100000 shares by Jun Pei of Cepton at 1.78 subject to Rule 16b-3 |
Understand Cepton's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Cepton's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0738 | |||
| Market Risk Adjusted Performance | (0.77) | |||
| Mean Deviation | 8.41 | |||
| Semi Deviation | 8.55 | |||
| Downside Deviation | 10.66 | |||
| Coefficient Of Variation | 1191.97 | |||
| Standard Deviation | 13.03 | |||
| Variance | 169.81 | |||
| Information Ratio | 0.0739 | |||
| Jensen Alpha | 1.25 | |||
| Total Risk Alpha | (0.97) | |||
| Sortino Ratio | 0.0903 | |||
| Treynor Ratio | (0.78) | |||
| Maximum Drawdown | 79.69 | |||
| Value At Risk | (21.09) | |||
| Potential Upside | 22.22 | |||
| Downside Variance | 113.69 | |||
| Semi Variance | 73.07 | |||
| Expected Short fall | (14.30) | |||
| Skewness | 1.27 | |||
| Kurtosis | 4.24 |
| Risk Adjusted Performance | 0.0738 | |||
| Market Risk Adjusted Performance | (0.77) | |||
| Mean Deviation | 8.41 | |||
| Semi Deviation | 8.55 | |||
| Downside Deviation | 10.66 | |||
| Coefficient Of Variation | 1191.97 | |||
| Standard Deviation | 13.03 | |||
| Variance | 169.81 | |||
| Information Ratio | 0.0739 | |||
| Jensen Alpha | 1.25 | |||
| Total Risk Alpha | (0.97) | |||
| Sortino Ratio | 0.0903 | |||
| Treynor Ratio | (0.78) | |||
| Maximum Drawdown | 79.69 | |||
| Value At Risk | (21.09) | |||
| Potential Upside | 22.22 | |||
| Downside Variance | 113.69 | |||
| Semi Variance | 73.07 | |||
| Expected Short fall | (14.30) | |||
| Skewness | 1.27 | |||
| Kurtosis | 4.24 |
Consider Cepton's intraday indicators
Cepton intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Cepton stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 0.0741 | |||
| Daily Balance Of Power | (1.12) | |||
| Rate Of Daily Change | 0.92 | |||
| Day Median Price | 0.0104 | |||
| Day Typical Price | 0.0103 | |||
| Market Facilitation Index | 8.0E-4 | |||
| Price Action Indicator | (0.0008) | |||
| Period Momentum Indicator | (0.0009) | |||
| Relative Strength Index | 51.39 |
Cepton Stock media impact
Far too much social signal, news, headlines, and media speculation about Cepton that are available to investors today. That information is available publicly through Cepton media outlets and privately through word of mouth or via Cepton internal channels. However, regardless of the origin, that massive amount of Cepton data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Cepton news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Cepton relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Cepton's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Cepton alpha.
Cepton Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Cepton can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Cepton Corporate Management
| Brunno Moretti | Senior Operations | Profile | |
| Liqun Han | VP Operations | Profile | |
| Dong Chang | Interim Officer | Profile | |
| Jun Pei | President, CoFounder | Profile | |
| Winston Fu | S CFO | Profile | |
| Dongyi Liao | VP Applications | Profile |
Additional Tools for Cepton Stock Analysis
When running Cepton's price analysis, check to measure Cepton's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Cepton is operating at the current time. Most of Cepton's value examination focuses on studying past and present price action to predict the probability of Cepton's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cepton's price. Additionally, you may evaluate how the addition of Cepton to your portfolios can decrease your overall portfolio volatility.