Astrotech Story

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Lets try to go over the odds of Astrotech to fully recover from the current slip as its shares went up 1.18%. Astrotech's current daily volatility is 5.47 percent, with a beta of -0.34 and an alpha of -0.42 over DOW. As many of us are excited about measuring and control, it is fair to go over Astrotech. We will analyze why Astrotech investors may still consider a stake in the business.
Published over three weeks ago
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Is Astrotech (NASDAQ:ASTC) way too risky for millennials?
Astrotech currently holds roughly 3.35 M in cash with (6.93 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.43. This firm currently holds 4 M in liabilities with Debt to Equity (D/E) ratio of 6.41, indicating Astrotech may have difficulties to generate enough cash to satisfy its financial obligations. The company has a current ratio of 1.05, suggesting that it is in a questionable position to pay out its financial obligations when due.
Investing in Astrotech, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Astrotech along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Astrotech's Liquidity

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

How Astrotech utilizes its cash?

To perform a cash flow analysis of Astrotech, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Astrotech is receiving and how much cash it distributes out in a given period. The Astrotech cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Astrotech Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (6.93 Million)

Astrotech exotic insider transaction detected

Legal trades by Astrotech 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:
Astrotech insider trading alert for general transaction of common stock by Winn Interests Ltd, the corporate stakeholder, on 30th of May 2020. This event was filed by Astrotech Corp with SEC on 2018-10-19. Initial filing of beneficial ownership - SEC Form 3 [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.

A Deeper look at Astrotech

Astrotech secures Sharpe Ratio (or Efficiency) of -0.12, which signifies that the company had -0.12% of return per unit of risk over the last month. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Astrotech exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Astrotech mean deviation of 3.79, and Risk Adjusted Performance of (0.08) to double-check the risk estimate we provide.
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Astrotech technical analysis suggests possible collapse

Current standard deviation is at 5.38. Astrotech exhibits very low volatility with skewness of 1.13 and kurtosis of 3.52. However, we advise investors to further study Astrotech technical indicators to make sure all market info is available and is reliable.

Our Final Takeaway

Whereas other companies in the aerospace & defense industry are either recovering or due for a correction, Astrotech may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 1st of October 2020, we believe Astrotech is currently undervalued. It moves totally opposite to the market and projects very high probability of bankruptcy in the next two years. However, our present 30 days 'Buy-vs-Sell' recommendation 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 Raphi Shpitalnik do not own shares of Astrotech. Please refer to our Terms of Use for any information regarding our disclosure principles.

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