Will AutoWeb (NASDAQ:AUTO) continue to grow in September?

The next fiscal quarter end is expected on the 30th of September 2020. The stock is still going through an active upward rally. AutoWeb Market Capitalization is quite stable at the moment as compared to the past year. The company's current value of Market Capitalization is estimated at 33.33 Million. Tangible Asset Value is expected to rise to about 50.6 M this year, although the value of Net Income Per Employee will most likely fall to (91.4 K). As many millenniums are trying to avoid communication services space, it makes sense to outline AutoWeb a little further and try to understand its current market patterns. What exactly are AutoWeb shareholders getting in September?
Published over a year ago
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Reviewed by Michael Smolkin

The company currently holds 11.91 M in liabilities with Debt to Equity (D/E) ratio of 0.71, which is about average as compared to similar companies. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. AutoWeb has an asset utilization ratio of 154.31 percent. This suggests that the company is making $1.54 for each dollar of assets. An increasing asset utilization means that AutoWeb is more efficient with each dollar of assets it utilizes for everyday operations.
Autoweb financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Autoweb, including all of Autoweb'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 Autoweb assets, the company is considered highly leveraged. Understanding the composition and structure of overall Autoweb 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.

Watch out for price decline

Please consider monitoring Autoweb on a daily basis if you are holding a position in it. Autoweb is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Autoweb stock to be traded above the $1 level to remain listed. If Autoweb stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Autoweb's Liquidity

Autoweb financial leverage refers to using borrowed capital as a funding source to finance Autoweb ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Autoweb 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. Financial leverage can amplify the potential profits to Autoweb's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Autoweb's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Autoweb's total debt and its cash.

Detailed Perspective On Autoweb

AutoWeb reported the previous year's revenue of 96.74 M. Net Loss for the year was (10.35 M) with profit before overhead, payroll, taxes, and interest of 22.57 M.

Asset Breakdown

14 M
Assets Non Current
Goodwill
39.9 M
Current Assets
Total Assets68.89 Million
Current Assets39.87 Million
Assets Non Current14 Million
Goodwill7.29 Million
Tax Assets639,189

AutoWeb implied volatility may change after the rise

The potential upside is down to 20.69 as of today. AutoWeb is displaying above-average volatility over the selected time horizon. Investors should scrutinize AutoWeb independently to ensure intended market timing strategies are aligned with expectations about AutoWeb volatility.

Our Bottom Line On AutoWeb

Whereas many of the other players within the internet content & information industry are still a little expensive, even after the recent corrections, AutoWeb may offer a potential longer-term growth to institutional investors. The inconsistency in the assessment between current AutoWeb valuation and our trade advice on AutoWeb is due to the recent market swings and your selection of investing horizon. 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 AutoWeb.

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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 Rifka Kats do not own shares of Autoweb. Please refer to our Terms of Use for any information regarding our disclosure principles.

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