Macroaxis Stories

Will ENVIRONMENTAL TECTONICS reverse?

July 12, 2020  By Vlad Skutelnik
Macroaxis Story
ENVIRONMENTAL TECTONICS current daily volatility is 9.86 percent, with a beta of 0.37 and an alpha of 0.08 over DOW. ENVIRONMENTAL TECTONICS odds of distress is under 45 percent. ENVIRONMENTAL TECTONICS appears to be out of control, given 1 month investment horizon. ENVIRONMENTAL TECTONICS secures Sharpe Ratio (or Efficiency) of 0.0379, which denotes the company had 0.0379% of return per unit of volatility over the last month. Our approach towards predicting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-four technical indicators for ENVIRONMENTAL TECTONICS, which you can use to evaluate future volatility of the firm. Please utilize ENVIRONMENTAL TECTONICS downside deviation of 17.13, market risk adjusted performance of 0.3963, and mean deviation of 4.11 to check if our risk estimates are consistent with your expectations.
Published over a year ago
View all stories for Environmmtl Tectonic | View All Stories

Reviewed by Michael Smolkin

This firm currently holds 19.79 M in liabilities with Debt to Equity (D/E) ratio of 2.01, implying ENVIRONMENTAL TECTONICS greatly relies on financing operations through barrowing. The company currently holds 19.79 M in liabilities with Debt to Equity (D/E) ratio of 2.01, implying the firm greatly relies on financing operations through barrowing. ENVIRONMENTAL TECTONICS has a current ratio of 0.95, indicating that it has a negative working capital and may not be able to pay financial obligations when due.
Environmmtl Tectonic financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Environmmtl Tectonic, including all of Environmmtl Tectonic's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Environmmtl Tectonic assets, the company is considered highly leveraged. Understanding the composition and structure of overall Environmmtl Tectonic debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

How important is Environmmtl Tectonic's Liquidity

Environmmtl Tectonic financial leverage refers to using borrowed capital as a funding source to finance Environmmtl Tectonic ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Environmmtl Tectonic 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 Environmmtl Tectonic's 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 Environmmtl Tectonic's 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 Environmmtl Tectonic's total debt and its cash.

How is Environmmtl allocating its cash?

To perform a cash flow analysis of Environmmtl Tectonic, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Environmmtl Tectonic is receiving and how much cash it distributes out in a given period. The Environmmtl Tectonic cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Is Environmmtl Tectonic valued correctly by the market?

ENVIRONMENTAL TECTONICS discloses 25.62 m in current valuation. The entity reported previous year revenue of 46.12 M. Net Loss for the year was (1.37 M) with profit before overhead, payroll, taxes, and interest of 17.4 M. ENVIRONMENTAL TECTONICS is trading at 0.46. Today the highest price was 0.46.

Will ENVIRONMENTAL investors exit after the next slip?

Variance is down to 96.77. It may suggest a possible volatility slip. ENVIRONMENTAL TECTONICS is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about ENVIRONMENTAL TECTONICS implied risk. ENVIRONMENTAL TECTONICS is a potential penny stock. Although ENVIRONMENTAL TECTONICS may be in fact a good instrument to invest, many penny otc stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in ENVIRONMENTAL TECTONICS. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

The Bottom Line

Whereas few other entities within specialty industrial machinery industry are still a little expensive, even after the recent corrections, ENVIRONMENTAL TECTONICS may offer a potential longer-term growth to investors. The bottom line, as of 12th of July 2020, our latest 30 days buy/sell recommendation on the company is Strong Sell. We believe ENVIRONMENTAL TECTONICS is currently overvalued with below average odds of financial distress for the next two years. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to trade some or all of your ENVIRONMENTAL TECTONICS holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to ENVIRONMENTAL TECTONICS.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

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 Environmmtl Tectonic. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com