Macroaxis Stories

Alkaline Water slumps over 2 percent

July 8, 2020  By
This post is geared to all Alkaline Water retail investors as well as to investors considering exiting their position in the enterprise. I will evaluate if Alkaline Water shares are sensibly priced going into August and whether retail investors should be worried. Will the latest Alkaline risk factors impact the value of the stock? We estimate Alkaline Water as currently overvalued. The real value is approaching 1.48 per share. Alkaline Water shows a prevailing Real Value of $1.48 per share. The current price of the firm is $2.02. Based on Macroaxis valuation methodology, the firm appears to be overvalued. Our model approximates the value of Alkaline Water from analyzing the firm fundamentals such as current valuation of 71.74 M, return on equity of (352.96) %, and profit margin of (36.93) % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor buying undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Published over a year ago
View all stories for Alkaline Water | View All Stories

Reviewed by Ellen Johnson

This firm conducts business under Consumer Defensive sector and is part of Beverages—Non-Alcoholic industry. We provide buy or sell advice to complement the prevailing expert consensus on Alkaline Water. Our dynamic recommendation engine makes use of a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Volatility is a rate at which the price of Alkaline Water or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Alkaline Water may increase or decrease. In other words, similar to Alkaline's beta indicator, it measures the risk of Alkaline Water and helps estimate the fluctuations that may happen in a short period of time. So if prices of Alkaline Water fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

Watch out for price decline

Please consider monitoring Alkaline Water on a daily basis if you are holding a position in it. Alkaline Water is trading at a penny-stock level, and the possibility of delisting is much higher compared to other pink sheets. However, just because the pink sheet is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Alkaline Water stock to be traded above the $1 level to remain listed. If Alkaline Water pink sheet price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Alkaline Water's Liquidity

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

How is Alkaline allocating its cash?

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

What is driving Alkaline Water Investor Appetite?

Alkaline Water makes 16.27 x price to book. The latest price spikes of Alkaline Water may raise some interest from investors as it closed today at a share price of 1.84 on 2,199,100 in trading volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 7.18. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Alkaline Water partners.

Will Alkaline slump impact its fundamentals?

Information ratio is down to 0.31. It may connote a possible volatility slump. Alkaline Water is displaying above-average volatility of 7.28 over the selected time horizon. Investors should scrutinize Alkaline Water independently to ensure intended market timing strategies are aligned with expectations about Alkaline Water volatility.

In spite of some other entities in beverages—non-alcoholic industry are either recovering or due for a correction, Alkaline Water may not be performing as strong as the other in terms of long-term growth potentials. The bottom line, as of 8th of July 2020, we see that Alkaline Water moves indifferently to market moves. The enterprise is overvalued with very low probability of financial unrest within the next 24 months. Our primary 30 days advice on the enterprise is Strong Sell. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to exit some or all of your Alkaline Water 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 Alkaline Water.

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 Alkaline Water. 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