Proofpoint Analysis

Proofpoint has over 1.12 Billion in debt which may indicate that it relies heavily on debt financing. Proofpoint's financial risk is the risk to Proofpoint stockholders that is caused by an increase in debt.

Asset vs Debt

Equity vs Debt

Proofpoint's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Proofpoint's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Proofpoint Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Proofpoint's stakeholders.
For most companies, including Proofpoint, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Proofpoint, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Proofpoint's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Given that Proofpoint's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Proofpoint is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Proofpoint to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Proofpoint is said to be less leveraged. If creditors hold a majority of Proofpoint's assets, the Company is said to be highly leveraged.
Proofpoint is undervalued with Real Value of 0.0 and Hype Value of 0.0. The main objective of Proofpoint delisted stock analysis is to determine its intrinsic value, which is an estimate of what Proofpoint is worth, separate from its market price. There are two main types of Proofpoint's stock analysis: fundamental analysis and technical analysis.
The Proofpoint stock is traded in the USA on NASDAQ Exchange, with the market opening at 09:30:00 and closing at 16:00:00 every Mon,Tue,Wed,Thu,Fri except for officially observed holidays in the USA. Proofpoint is usually not traded on Labour Day, Thanksgiving Day, Christmas Day, New Year 's Day, Dr . Martin Luther King Jr 's Birthday, Washington 's Birthday, Good Friday, Memorial Day, Juneteenth Holiday, Independence Day ( substitute day ), Independence Day. Proofpoint Stock trading window is adjusted to America/New York timezone.
  
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Proofpoint Stock Analysis Notes

About 98.0% of the company shares are owned by institutional investors. The company recorded a loss per share of 2.48. Proofpoint had not issued any dividends in recent years. Proofpoint, Inc. operates as a security-as-a-service provider that enables large and mid-sized organizations to defend, protect, archive, and govern their sensitive data worldwide. Proofpoint, Inc. was incorporated in 2002 and is headquartered in Sunnyvale, California. Proofpoint operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 3658 people. To find out more about Proofpoint contact the company at 408 517-4710 or learn more at www.proofpoint.com.

Proofpoint Investment Alerts

Proofpoint is not yet fully synchronised with the market data
Proofpoint has some characteristics of a very speculative penny stock
Proofpoint has a very high chance of going through financial distress in the upcoming years
The company reported the previous year's revenue of 1.09 B. Net Loss for the year was (142.29 M) with profit before overhead, payroll, taxes, and interest of 774.55 M.
Over 98.0% of the company shares are owned by institutional investors

Proofpoint Market Capitalization

The company currently falls under 'Large-Cap' category with a current market capitalization of 10.1 B.

Proofpoint Profitablity

The company has Profit Margin (PM) of (13.08) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (8.78) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $8.78.

Proofpoint Outstanding Bonds

Proofpoint issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Proofpoint uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Proofpoint bonds can be classified according to their maturity, which is the date when Proofpoint has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Proofpoint Debt to Cash Allocation

Proofpoint currently holds 1.12 B in liabilities with Debt to Equity (D/E) ratio of 3.83, implying the company greatly relies on financing operations through barrowing. Proofpoint has a current ratio of 1.33, which is within standard range for the sector. Note, when we think about Proofpoint's use of debt, we should always consider it together with its cash and equity.

Proofpoint Assets Financed by Debt

Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Proofpoint's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Proofpoint, which in turn will lower the firm's financial flexibility.

Proofpoint Corporate Bonds Issued

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As an investor, your ultimate goal is to build wealth. Optimizing your investment portfolio is an essential element in this goal. Using our stock analysis tools, you can find out how much better you can do when adding Proofpoint to your portfolios without increasing risk or reducing expected return.

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Other Consideration for investing in Proofpoint Stock

If you are still planning to invest in Proofpoint check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Proofpoint's history and understand the potential risks before investing.
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