Cardlytics (NASDAQ: CDLX), a prominent player in the Communication Services sector and the Advertising Agencies industry, continues to maintain its upward momentum in the US stock market. Despite a challenging fiscal year ending in December, marked by a
loss of $465.3 million from continuing operations and a profit margin of -1.64%, the company has managed to sustain its market position. With an enterprise value of
$522.6 million, Cardlytics' resilience is noteworthy. The company, which operates domestically, reported a gross profit of $115.4 million on revenues of $294.9 million. However, the company's return on assets stands at -0.07, and it recorded a quarterly revenue growth of -0.05. Cardlytics, which employs 489 full-time employees, is currently under the analyst overall consensus of 'Sell', with five analysts providing estimates. The company's EPS estimate for the current year is -0.32, and it is expected to be -0.17 for the next quarter. Despite these challenges,
Cardlytics' valuation hype value stands at 13.39, significantly higher than its real value of 9.03. The company's net interest income was a loss of $2.6 million, and it incurred an income tax expense of $1.4 million. Despite the negative EBITDA of $79.1 million, Cardlytics continues to demonstrate potential for growth and resilience in the market. As the company navigates through these financial challenges, investors and market watchers are keenly observing its performance and potential for recovery. Cardlytics' Cash and Equivalents Turnover is currently fairly stable compared to the previous year. In 2022, Cardlytics reported a Cash and Equivalents Turnover of 1.68. The company's Revenue to Assets ratio is projected to increase to 0.44 in 2023, while the Net Income Per Employee is expected to decrease to $953.1K in the same year. As conservative investors are showing increased interest in the media sector, Cardlytics could be a potential addition to your investment radar. We will examine whether it's still feasible for Cardlytics to reduce net losses this year. In this article, I will also discuss some key indicators that Cardlytics investors should consider in September.
Cardlytics (NASDAQ: CDLX), a prominent player in the advertising industry, continues to demonstrate robust performance in the US stock market. The company, which operates in the media service category with a concentration in advertising, has an enterprise value of 522.6M and reported a revenue of 294.9M. Despite the current EPS estimate for the next year indicating a loss of 0.44, the company's stock has maintained an upward trajectory with a price change of 2.23 and a significant price percent change of 19.79. The trading volume for today stands at 2.9M, indicating a strong market interest in CDLX. With a total risk alpha of 0.8893 and a Sortino ratio of 0.1901, Cardlytics presents a viable investment opportunity for those willing to navigate the risks associated with the advertising industry.
Additional examination
Cardlytics, currently valued at $9.03 per share, appears overvalued given its modest future projections. The company holds a performance score of 17 on a scale of zero to a hundred. It has a Beta (market volatility) of 1.4202, indicating a relatively significant risk compared to the market. This suggests that as the market rises, Cardlytics is likely to outperform it. However, in the event of negative market returns, Cardlytics is likely to underperform.
While it's crucial to consider Cardlytics' historical returns, it's equally important to be realistic about what can be achieved with its current equity trends. Our approach to predicting the future performance of any stock involves not only examining its past charts but also the overall business, including all fundamental and technical indicators.
To determine whether Cardlytics' expected return of 1.55 will be sustainable in the future, we have identified twenty-one different technical indicators. These can assist you in verifying if the anticipated returns are sustainable. Utilize Cardlytics' standard deviation, maximum drawdown, and the relationship between the maximum drawdown and expected shortfall to analyze the company's future returns.Cardlytics holds a total of thirty-three million nine hundred eight thousand two hundred
outstanding shares. The majority of Cardlytics
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Cardlytics to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Cardlytics. Please pay attention to any change in the institutional holdings of Cardlytics as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.
| 2020 | 2021 | 2022 | 2023 (projected) |
Interest Expense | 3.05 M | 12.56 M | 2.56 M | 2.62 M | Gross Profit | 63.27 M | 103.34 M | 112.63 M | 97.57 M |
Ownership Breakdown
Retail Investors10.92% | | Institutions85.94% |
| Retail Investors | 10.92 |
| Insiders | 3.14 |
| Institutions | 85.94 |
Cardlytics (NASDAQ: CDLX), a prominent player in the advertising agencies industry, continues to maintain its upward momentum in the US stock market. Despite a net income loss of $465.3M and an EBITDA of -$79.1M, the company's market capitalization stands at a robust
$382.15M.
The firm's shares are primarily owned by institutions, accounting for 85.94% of the total shares, while insiders hold 3.14%. Cardlytics' current liabilities are relatively low at $52.77M, compared to its net assets of $691.24M. However, the company's current ratio of 0.90X indicates a potential liquidity risk. The company's total debt is $235.26M, which is manageable considering its enterprise value of
$522.6M. Despite a quarterly revenue growth of -0.05, the company's revenue per share is $8.835, which is promising. The company's beta of 1.8 indicates higher volatility compared to the market, which is reflected in its high probability of bankruptcy at 75.26%. However, with a risk-adjusted performance of 0.1261 and a market risk-adjusted performance of 1.02, Cardlytics is showing resilience in a challenging market environment. .
Will Cardlytics growth be justifiable after the rise?
The skewness of Cardlytics stock has recently decreased to 0.15, indicating a distribution that is closer to the norm. This reduction suggests a decrease in the likelihood of extreme values, implying that the stock's recent growth may be stabilizing and becoming less volatile. However, investors should carefully assess whether the company's
fundamentals and future growth prospects justify its recent ascent. A lower skewness does not necessarily guarantee future growth, and a comprehensive analysis of the company's
financial health and market position is crucial before making any investment decisions. Cardlytics has demonstrated above-average volatility over the selected time horizon. Investors should meticulously evaluate Cardlytics independently to ensure that their intended
market timing strategies align with their expectations about the volatility of Cardlytics. Understanding different
market volatility trends can often assist investors in timing the market. The proper use of volatility indicators allows traders to measure the risk of Cardlytics' stock against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly impact
Cardlytics' stock price, adding stress for investors as they watch the value of their shares plummet. This situation typically compels investors to rebalance their portfolios by purchasing different stocks as prices fall. In conclusion, despite the modest market slide, Cardlytics has shown impressive resilience with a surge of over 19 percent. This performance surpasses the naive expected forecast value of
13.66 and the valuation market value of
13.5. However, investors should approach with caution as the analyst overall consensus leans towards 'Sell', with one strong sell recommendation out of five estimates. The analyst target price estimated value stands at 6.7, indicating a possible downside price of 6.83. On the other hand, the possible upside price is 20.48, which is significantly higher than the analyst's highest estimated target price of 10. Therefore, while Cardlytics has shown promising growth, investors should carefully consider these factors before making a decision. .
Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Cardlytics. Please refer to our
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