Recon Technology Valuation
| RCON Stock | USD 1.40 0.04 2.78% |
Based on Macroaxis valuation methodology, the company appears to be undervalued. Recon Technology holds a recent Real Value of $1.6 per share. The prevailing price of the company is $1.4. Our model determines the value of Recon Technology from analyzing the company fundamentals such as Shares Outstanding of 10.63 M, return on equity of -0.0925, and Operating Margin of (1.26) % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Recon Technology's valuation include:
Price Book 0.6562 | Enterprise Value | Enterprise Value Ebitda 0.2809 | Price Sales 0.6446 | Enterprise Value Revenue 3.6009 |
Undervalued
Today
Please note that Recon Technology's price fluctuation is dangerous at this time. Calculation of the real value of Recon Technology is based on 3 months time horizon. Increasing Recon Technology's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Recon Technology is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Recon Stock. However, Recon Technology's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 1.4 | Real 1.6 | Target 2.01 | Hype 1.37 | Naive 1.31 |
The intrinsic value of Recon Technology's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Recon Technology's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Recon Technology helps investors to forecast how Recon stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Recon Technology more accurately as focusing exclusively on Recon Technology's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Recon Technology's intrinsic value based on its ongoing forecasts of Recon Technology's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Recon Technology's closest peers.
Recon Technology Cash |
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Recon Technology Total Value Analysis
Recon Technology is at this time estimated to have valuation of 34.32 M with market capitalization of 42.73 M, debt of 34.44 M, and cash on hands of 332.86 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Recon Technology fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
34.32 M | 42.73 M | 34.44 M | 332.86 M |
Recon Technology Investor Information
About 59.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 0.66. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Recon Technology recorded a loss per share of 0.67. The entity last dividend was issued on the 27th of December 2019. The firm had 1:18 split on the 1st of May 2024. Based on the key measurements obtained from Recon Technology's financial statements, Recon Technology is not in a good financial situation at this time. It has a very high probability of going through financial hardship in March.Recon Technology Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Recon Technology has an asset utilization ratio of 12.61 percent. This suggests that the Company is making $0.13 for each dollar of assets. An increasing asset utilization means that Recon Technology is more efficient with each dollar of assets it utilizes for everyday operations.Recon Technology Profitability Analysis
Based on the key profitability measurements obtained from Recon Technology's financial statements, Recon Technology may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in March. Profitability indicators assess Recon Technology's ability to earn profits and add value for shareholders.Net Loss | First Reported 2008-03-31 | Previous Quarter -11 M | Current Value -11 M | Quarterly Volatility 13.4 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.31 | 0.26 |
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For Recon Technology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Recon Technology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Recon Technology utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Recon Technology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Recon Technology over time as well as its relative position and ranking within its peers.
Recon Technology Earnings per Share Projection vs Actual
By analyzing Recon Technology's earnings estimates, investors can diagnose different trends across Recon Technology's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Recon Technology is based on EPS before non-recurring items and includes expenses related to employee stock options.Recon Technology Ownership Allocation
The market capitalization of Recon Technology is $42.73 Million. Recon Technology has significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Note, that even with negative profits, if the true value of the company is larger than the current market value, you may still be able to generate positive returns on investment in this company.Recon Technology Profitability Analysis
The company reported the previous year's revenue of 66.29 M. Net Loss for the year was (42.59 M) with profit before overhead, payroll, taxes, and interest of 15.24 M.About Recon Technology Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Recon Technology. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Recon Technology based exclusively on its fundamental and basic technical indicators. By analyzing Recon Technology's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Recon Technology's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Recon Technology. We calculate exposure to Recon Technology's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Recon Technology's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 13.7 M | 16.7 M | |
| Pretax Profit Margin | (0.76) | (0.72) | |
| Operating Profit Margin | (0.99) | (0.94) | |
| Net Loss | (0.74) | (0.70) | |
| Gross Profit Margin | 0.26 | 0.31 |
Recon Technology Current Valuation Indicators
Recon Technology's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Recon Technology's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Recon Technology, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Recon Technology's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Recon Technology's worth.When determining whether Recon Technology offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Recon Technology's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Recon Technology Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Recon Technology Stock: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Recon Technology. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in employment. To learn how to invest in Recon Stock, please use our How to Invest in Recon Technology guide.You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Will Oil & Gas Equipment & Services sector continue expanding? Could Recon diversify its offerings? Factors like these will boost the valuation of Recon Technology. Anticipated expansion of Recon directly elevates investor willingness to pay premium valuations. Accurate valuation requires analyzing both current fundamentals and future growth trajectories. Every Recon Technology data point contributes insight, yet successful analysis hinges on identifying the most consequential variables.
Earnings Share (0.67) | Revenue Per Share | Quarterly Revenue Growth 0.026 | Return On Assets | Return On Equity |
Investors evaluate Recon Technology using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Recon Technology's intrinsic value—the estimated true worth—helps identify when the stock trades at a discount or premium to fair value. Seasoned market participants apply comprehensive analytical frameworks to derive fundamental worth and identify mispriced opportunities. External factors like market trends, sector rotation, and investor psychology can cause Recon Technology's market price to deviate significantly from intrinsic value.
It's important to distinguish between Recon Technology's intrinsic value and market price, which are calculated using different methodologies. Investment decisions regarding Recon Technology should consider multiple factors including financial performance, growth metrics, competitive position, and professional analysis. Conversely, Recon Technology's market price signifies the transaction level at which participants voluntarily complete trades.