Sphere Story

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ANY -- USA Stock  

USD 1.90  0.08  4.04%

Sphere 3D Corp is scheduled to announce its earnings tomorrow. Sphere 3D Return on Invested Capital is fairly stable at the moment as compared to the past year. Sphere 3D reported Return on Invested Capital of 1.85 in 2020. Sales per Share is likely to rise to 1.91 in 2021, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop (2.8 M) in 2021. As many investors are getting excited about technology space, it is fair to break down Sphere 3D Corp as an investment option. Let's inspect the possibilities of Sphere 3D maintaining its debt level in May.
Published over two weeks ago
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Thinking to exit Sphere (NASDAQ:ANY) based on its current debt commitments?
The company has 2.57 M in debt with debt to equity (D/E) ratio of 0.43, which is OK given its current industry classification.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Sphere 3D has an asset utilization ratio of 2.81 percent. This suggests that the company is making $0.0281 for each dollar of assets. An increasing asset utilization means that Sphere 3D Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Sphere 3D financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Sphere 3D, including all of Sphere 3D'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 Sphere 3D assets, the company is considered highly leveraged. Understanding the composition and structure of overall Sphere 3D 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.

Understanding Sphere Total Debt

Sphere 3D Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Sphere 3D Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Sphere 3D balance sheet include debt obligations and money owed to different Sphere 3D vendors, workers, and loan providers. Below is the chart of Sphere main long-term debt accounts currently reported on its balance sheet.
You can use Sphere 3D Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Sphere 3D's Liquidity

Sphere 3D financial leverage refers to using borrowed capital as a funding source to finance Sphere 3D Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Sphere 3D 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 Sphere 3D's total debt and its cash.

Acquisition by Cheemin BoLinn of 15853 shares of Sphere 3D subject to Rule 16b-3

Legal trades by Sphere 3D 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:
Sphere insider trading alert for grant of common stock by Cheemin BoLinn, the corporate stakeholder, on 7th of September 2020. This event was filed by Sphere 3d Corp with SEC on 2018-05-10. Statement of changes in beneficial ownership - SEC Form 4 [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.

Breaking it down a bit more

The current price rise of Sphere 3D could raise concerns from investors as the company it trading at a share price of 2.71 on 514,402 in volume. The company directors and management may have good odds in positioning the company resources to exploit market volatility in May. The stock standard deviation of daily returns for 30 days investing horizon is currently 12.29. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Sphere 3D Corp partners.

Asset Breakdown

Assets Non Current
3.4 M
1.8 M
Current Assets
Total Assets7.76 Million
Current Assets1.79 Million
Assets Non Current5.97 Million
Goodwill3.4 Million

Will Sphere 3D current rise continue?

Downside variance is down to 60.81. It may suggest a possible volatility slide. Sphere 3D Corp is displaying above-average volatility over the selected time horizon. Investors should scrutinize Sphere 3D Corp independently to ensure intended market timing strategies are aligned with expectations about Sphere 3D volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sphere 3D's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sphere 3D's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Takeaway

While many of the other players under the software?application industry are still a bit expensive, Sphere 3D may offer a potential longer-term growth to investors. While some investors may not share our view we believe it may be a good time to sell Sphere as the risk-reward trade off is not appealing enough to hold a position. 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 Sphere 3D.

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 Raphi Shpitalnik do not own shares of Sphere 3D Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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