Appharvest Stock Story


USD 3.20  0.04  1.23%   

The stock goes through a very aggressive trading activities. While many traders are getting carried away by overanalyzing consumer defensive space, it is reasonable to concentrate on Appharvest as an investment alternative. What exactly are Appharvest shareholders getting in July? Here we also measure the ability of Appharvest to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
Published over two months ago
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Will Appharvest (NASDAQ:APPH) be in financial trouble before July?

This firm currently holds 138 M in liabilities with Debt to Equity (D/E) ratio of 0.36, which is about average as compared to similar companies.
We provide trade advice to complement the prevailing expert consensus on Appharvest. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Appharvest financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Appharvest, including all of Appharvest'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 Appharvest assets, the company is considered highly leveraged. Understanding the composition and structure of overall Appharvest 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 Appharvest Total Debt

Appharvest liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Appharvest 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 Appharvest balance sheet include debt obligations and money owed to different Appharvest vendors, workers, and loan providers. Below is the chart of Appharvest main long-term debt accounts currently reported on its balance sheet.
You can use Appharvest financial leverage analysis tool to get a better grip on understanding its financial position

How important is Appharvest's Liquidity

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

Payment of 8897 shares by Lee David J of Appharvest subject to Rule 16b-3

Legal trades by Appharvest 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:
Appharvest insider trading alert for payment of common stock by Lee David J, President, on 26th of July 2022. This event was filed by Appharvest Inc with SEC on 2022-07-26. 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.

Going after Appharvest Financials

The company reported the previous year's revenue of 9.05 M. Net Loss for the year was (166.19 M) with loss before overhead, payroll, taxes, and interest of (32.89 M).

Asset Breakdown

343.1 M
Assets Non Current
161.2 M
Current Assets
Total Assets504.37 Million
Current Assets161.24 Million
Assets Non Current343.13 Million

Will Appharvest growth be viable after the rise?

Skewness is down to 0.31. It may hint to a possible volatility drop. Appharvest exhibits very low volatility with skewness of 0.31 and kurtosis of -0.32. However, we advise investors to further study Appharvest technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Appharvest'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 Appharvest'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.

Appharvest Implied Volatility

Appharvest's implied volatility exposes the market's sentiment of Appharvest stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Appharvest's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Appharvest stock will not fluctuate a lot when Appharvest's options are near their expiration.

While many of the other players in the farm products industry are either recovering or due for a correction, Appharvest may not be performing as strong as the other in terms of long-term growth potentials. On the whole, as of the 15th of June 2022, we see that Appharvest responds to the market. The company is undervalued with average odds of financial distress within the next 24 months. Our primary 90 days Buy-Hold-Sell recommendation on the company is Hold.

Editorial Staff

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 Appharvest. Please refer to our Terms of Use for any information regarding our disclosure principles.

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