AeroCentury Story

<div class='circular--portrait' style='background:#169D0B;color: #E6E6FA;font-size:4em;'>AC</div>
ACY -- USA Stock  

USD 8.22  0.01  0.12%

AeroCentury Corp EBITDA Margin is fairly stable at the moment as compared to the past year. AeroCentury Corp reported EBITDA Margin of 0.036 in 2020. Enterprise Value over EBITDA is likely to rise to 88.57 in 2021, whereas Earnings before Tax are likely to drop (19.6 M) in 2021. Today's short post will break down AeroCentury Corp as your potential position. We will inspect the question of why investors should continue to be confident in AeroCentury Corp outlook.
Published over two weeks ago
View all stories for AeroCentury Corp | View All Stories
Should you continue to rely on AeroCentury Corp (NYSEMKT:ACY) management?
About 29.0% of the company shares are held by company insiders. Insiders ownership of AeroCentury Corp refers to the amount of AeroCentury Corp equity owned by AeroCentury officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of AeroCentury, including its current ownership diagnostics.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as AeroCentury Corp. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for AeroCentury Corp

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of AeroCentury Corp's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of AeroCentury Corp in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as AeroCentury Corp. Your research has to be compared to or analyzed against AeroCentury Corp's peers to derive any actionable benefits. When done correctly, AeroCentury Corp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in AeroCentury Corp.

How important is AeroCentury Corp's Liquidity

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

How AeroCentury utilizes its cash?

To perform a cash flow analysis of AeroCentury Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash AeroCentury Corp is receiving and how much cash it distributes out in a given period. The AeroCentury Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. AeroCentury Corp Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. AeroCentury Corp reported Net Cash Flow from Operations of 9.4 Million in 2020

Purchase by Michael Magnusson of 1000 shares of AeroCentury Corp

Legal trades by AeroCentury Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
AeroCentury insider trading alert for perchase of common stock by Michael Magnusson, President, on 23rd of August 2020. This event was filed by Aerocentury Corp with SEC on 2019-11-22. Statement of changes in beneficial ownership - SEC Form 4. Michael Magnusson currently serves as president, director and managing director of jmc of AeroCentury Corp [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is AeroCentury Corp valued reasonably by the market?

The current price rise of AeroCentury Corp could raise concerns from investors as the firm it trading at a share price of 10.75 on very low momentum in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 53.19. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the AeroCentury Corp partners.

Returns Breakdown

Return on Assets(0.0831)
Return on Equity(0.47)
Return Capital(0.0305)
Return on Sales(0.21)

Can AeroCentury Corp build up on the current rise?

The risk adjusted performance is down to 0.15 as of today. AeroCentury Corp 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 AeroCentury Corp implied risk.

Our Takeaway on AeroCentury Corp Investment

While other companies under the rental & leasing services industry are still a bit expensive, AeroCentury Corp may offer a potential longer-term growth to investors. The bottom line, as of the 2nd of January 2021, our research shows that AeroCentury Corp is a rather out of control investment opportunity with a below average probability of distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our latest 30 days buy-hold-sell advice on the company is Strong Sell.

About Contributor

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 Gabriel Shpitalnik do not own shares of AeroCentury Corp. 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