Cinedigm Story

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CIDM -- USA Stock  

USD 0.58  0.02  3.57%

Cinedigm Corp is scheduled to announce its earnings today. Cinedigm Corp Invested Capital is relatively stable at the moment as compared to the past year. The company's current value of Invested Capital is estimated at 1.51 Million. Market Capitalization is expected to hike to about 15.1 M this year, although the value of Revenue Per Employee will most likely fall to nearly 642.5 K. While some millenniums are indifferent towards services space, it makes sense to summarize Cinedigm Corp as a unique investment alternative. We will evaluate why recent Cinedigm Corp price moves suggest a bounce in September.
Published over a month ago
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Is Cinedigm Corp (NASDAQ:CIDM) outlook still optimistic based on the new debt level?
The company currently holds 49.97 M in liabilities with Debt to Equity (D/E) ratio of 24.19, indicating Cinedigm Corp may have difficulties to generate enough cash to satisfy its financial obligations. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cinedigm Corp has an asset utilization ratio of 22.29 percent. This denotes that the company is making $0.22 for each dollar of assets. An increasing asset utilization means that Cinedigm Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Cinedigm Corp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Cinedigm Corp, including all of Cinedigm Corp'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 Cinedigm Corp assets, the company is considered highly leveraged. Understanding the composition and structure of overall Cinedigm Corp 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 Cinedigm Corp on a daily bases if you are holding a position in it. Cinedigm Corp is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. 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 Cinedigm Corp stock to be traded above the $1 level to remain listed. If Cinedigm Corp 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.

Understanding Cinedigm Total Liabilities

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

How important is Cinedigm Corp's Liquidity

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

Is Cinedigm Corp valued accurately by the market?

The new price hike of Cinedigm Corp could raise concerns from stakeholders as the firm closed today at a share price of 1.44 on 2,046,666 in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in September. The stock standard deviation of daily returns for 30 days investing horizon is currently 28.87. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Cinedigm Corp partners.

Asset Breakdown

50.7 M
Assets Non Current
24.1 M
Goodwill
77.7 M
Current Assets
Total Assets153.73 Million
Current Assets77.66 Million
Assets Non Current50.68 Million
Goodwill24.15 Million

Will Cinedigm Corp new hike continue?

Total Risk Alpha just dropped to -0.85, may denote upcoming price decrease. Cinedigm Corp is displaying above-average volatility over the selected time horizon. Investors should scrutinize Cinedigm Corp independently to ensure intended market timing strategies are aligned with expectations about Cinedigm Corp volatility.

Our Final Perspective on Cinedigm Corp

While few other entities under the entertainment - diversified industry are still a bit expensive, Cinedigm Corp may offer a potential longer-term growth to stakeholders. To conclude, as of the 14th of August 2020, we believe that at this point, Cinedigm Corp is out of control with close to average probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. Our current 30 days buy-or-sell advice on the company is Hold.

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 Ellen Johnson do not own shares of Cinedigm Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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