AutoWeb Story

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AUTO -- USA Stock  

USD 2.95  0.04  1.37%

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

Understanding AutoWeb Total Debt

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

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. Please check the breakdown between AutoWeb's total debt and its cash.

AutoWeb exotic insider transaction detected

Legal trades by AutoWeb 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:
AutoWeb insider trading alert for general transaction of employee stock option (right to buy) by Sara Partin, Chief Human Resources Officer, on 16th of August 2020. This event was filed by Autoweb Inc with SEC on 2018-10-25. 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.

Another Outlook 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.

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 Achuva Shats do not own shares of AutoWeb. Please refer to our Terms of Use for any information regarding our disclosure principles.

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