Alaska Story

ALSK -- USA Stock

USD 3.28 0.01 0.30%

Macroaxis Story

As many rational traders are trying to avoid communication services space, it makes sense to examine Alaska Communications Systems a little further and understand how it stands against GTT Communications and other similar entities. We are going to concentrate on some of the competitive aspects of both Alaska and GTT Communications.

Published over a month ago

View all stories for Alaska Communications | View All Stories

Is Alaska (NASDAQ:ALSK) catching up with GTT Communications (NYSE:GTT)?

By analyzing existing forward-looking signals between Alaska Communications and GTT Communications, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in GTT Communications with a short position in Alaska Communications. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Alaska Communications has an asset utilization ratio of 51.01 percent. This signifies that the company is making $0.51 for each dollar of assets. An increasing asset utilization means that Alaska Communications Systems is more efficient with each dollar of assets it utilizes for everyday operations.

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Alaska or IDT is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Alaska Communications dividends

A dividend is the distribution of a portion of Alaska Communications earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Alaska Communications dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Alaska one year expected dividend income is about $0.03 per share.

The current Dividend Yield is estimated to increase to 0.09, while Payment of Dividends and Other Cash Distributions is projected to decrease to (11.3 M).

	Last Reported	Projected for 2021
Payment of Dividends and Other Cash Distributions	-10.5 M	-11.3 M
Dividend Yield	0.07	0.09
Dividends per Basic Common Share	0.14	0.14

Investing in stocks that pay dividends, such as stock of Alaska Communications Systems, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Alaska Communications must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Alaska Communications. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Alaska Communications's Liquidity

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

Correlation Between Alaska and IDT Corporation

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Alaska Communications together with similar or unrelated positions with a negative correlation. For example, you can also add IDT to your portfolio. If IDT is not perfectly correlated to Alaska Communications it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Alaska Communications for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between ALSK and IDT for more information.

Note

Are you currently holding both Alaska Communications and IDT in your portfolio? Please note if you are using this as a pair-trade strategy between Alaska Communications and IDT, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

A Deeper Perspective On Alaska Communications

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Alaska Communications revenue. Based on the latest financial disclosure, Alaska Communications Systems reported 236.5 M of revenue. This is 98.39% lower than that of the Communication Services sector and 98.91% lower than that of the Telecom Services industry. The revenue for all United States stocks is 97.49% higher than that of Alaska Communications. As for GTT Communications we see revenue of 1.7 B, which is 92.19% lower than that of the Telecom Services

Sector

9.4 B

ALSK	236.5 Million	2.08
Sector	9.43 Billion	82.97
GTT	1.7 Billion	14.95

Are Alaska Communications technical ratios showing a bounce back?

Sortino ratio is down to 0.38. It may signify a possible volatility plunge. Alaska Communications Systems is displaying above-average volatility over the selected time horizon. Investors should scrutinize Alaska Communications Systems independently to ensure intended market timing strategies are aligned with expectations about Alaska Communications volatility.

Our Final Takeaway

Although other companies under the telecom services industry are still a bit expensive, Alaska Communications may offer a potential longer-term growth to traders. Taking everything into account, as of the 5th of December 2020, we believe Alaska Communications is currently overvalued. It actively responds to the market and projects below average odds of distress in the next two years. However, our concluding 30 days buy-or-sell advice on the firm is Strong Buy.

About Contributor

Gabriel Shpitalnik is a Member of Macroaxs Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. 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 Gabriel Shpitalnik do not own shares of Alaska Communications Systems. 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

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2021 Macroaxis LLC