Bm Technologies Stock Story


USD 6.05  0.25  3.97%   

Bm Technologies is scheduled to announce its earnings tomorrow. Bm Technologies Earnings per Basic Share are fairly stable at the moment as compared to the past year. Bm Technologies reported Earnings per Basic Share of 1.44 in 2021. Earnings per Diluted Share is likely to rise to 1.54 in 2022, whereas Invested Capital is likely to drop (12.4 M) in 2022. While some of us are becoming more enthusiastic about technology space, let's break down Bm Technologies in greater detail to make a better estimate of its debt utilization. I will address a few possible reasons investors do not currently respect this stock.
Published over a month ago
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Will Bm Technologies (NYSEMKT:BMTX) be in financial trouble before August?

Bm Technologies currently holds 596 K in liabilities with Debt to Equity (D/E) ratio of 0.02, which may suggest the firm is not taking enough advantage from borrowing. This firm has a current ratio of 1.26, suggesting that it is in a questionable position to pay out its financial obligations when due. Debt can assist Bm Technologies until it has trouble settling it off, either with new capital or with free cash flow. So, Bm Technologies' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Bm Technologies sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Bm Technologies to invest in growth at high rates of return. When we think about Bm Technologies' use of debt, we should always consider it together with cash and equity.
Bm Technologies financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Bm Technologies, including all of Bm Technologies'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 Bm Technologies assets, the company is considered highly leveraged. Understanding the composition and structure of overall Bm Technologies 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 Bm Technologies Total Debt

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

How important is Bm Technologies's Liquidity

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

Acquisition by Dullinger James Francis of 9200 shares of Bm Technologies subject to Rule 16b-3

Legal trades by Bm Technologies 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:
Bm Technologies insider trading alert for grant of restricted stock unit by Dullinger James Francis, Chief Accounting Officer, on 5th of July 2022. This event was filed by Bm Technologies Inc with SEC on 2022-07-05. 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.

Detailed Perspective On Bm Technologies

The big decline in price over the last few months for Bm Technologies could raise concerns from investors as the firm is trading at a share price of 5.89 on 24,800 in volume. The company executives failed to add value to investors and position the firm supply of money to exploit market volatility in June. However, diversifying your holdings with Bm Technologies or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.26. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Bm Technologies partners.

Liabilities Breakdown

22.5 M
Current Liabilities
11.6 M
Long-Term Liabilities
Total Liabilities34.1 Million
Current Liabilities22.51 Million
Long-Term Liabilities11.59 Million
Tax Liabilities1.65 Million

Over 3 percent rise for Bm Technologies. What does it mean for investors?

Risk Adjusted Performance just dropped to -0.23, may suggest upcoming price decrease. Bm Technologies exhibits very low volatility with skewness of 0.3 and kurtosis of 0.91. However, we advise investors to further study Bm Technologies 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 Bm Technologies' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bm Technologies' 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.

Bm Technologies Implied Volatility

Bm Technologies' implied volatility exposes the market's sentiment of Bm Technologies stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Bm Technologies' 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 Bm Technologies stock will not fluctuate a lot when Bm Technologies' options are near their expiration.

Our Takeaway on Bm Technologies Investment

While some other entities in the software—application industry are either recovering or due for a correction, Bm Technologies may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 3rd of July 2022, our research shows that Bm Technologies is a rather somewhat reliable investment opportunity with a low probability of bankruptcy in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our overall 90 days buy-or-sell advice 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 Ellen Johnson do not own shares of Bm Technologies. Please refer to our Terms of Use for any information regarding our disclosure principles.

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