Duck Creek is UNDERVALUED at 40.90 per share with modest projections ahead.
Duck Creek Technologies secures Sharpe Ratio (or Efficiency) of -0.0811, which denotes the company had -0.0811% of return per unit of standard deviation over the last 3 months. Macroaxis philosophy in predicting 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. Duck Creek Technologies exposes twenty-seven different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to confirm Duck Creek Technologies
mean deviation of 1.76 to check the risk estimate we provide.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Duck Creek income statement, its balance sheet, and the statement of cash flows. Potential Duck Creek investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Duck Creek investors may use each financial statement separately, they are all related. The changes in Duck Creek's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Duck Creek's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Duck Creek
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Duck Creek performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Duck Creek shares is the value that is considered the true value of the share. If
the intrinsic value of Duck is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Duck Creek. Please read more on our
fundamental analysis page.
How important is Duck Creek's Liquidity
Duck Creek
financial leverage refers to using borrowed capital as a funding source to finance Duck Creek Technologies ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Duck Creek 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 Duck Creek'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 Duck Creek'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 Duck Creek's total debt and its cash.
Is Duck Creek valued wisely by the market?
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Duck Creek is not uncomon. Institutional investors typically avoid acquiring a high percentage of Duck Creek stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Duck Creek is distributed among investors.
Ownership Allocation
Duck Creek holds a total of one hundred thirty-one million five hundred ninety thousand
outstanding shares. The majority of Duck Creek Technologies
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Duck Creek Technologies to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Duck Creek. Please pay attention to any change in the institutional holdings of Duck Creek Technologies as this could imply that something significant has changed or about to change at the company. Also note that almost one million three hundred fifteen thousand nine hundred invesors are currently shorting Duck Creek expressing very little confidence in its
future performance.
| Insiders27.51% | Institutions73.82% |
| Retail Investors | -1.33 |
| Insiders | 27.51 |
| Institutions | 73.82 |
| 2018 | 2019 | 2020 | 2021 (projected) |
Interest Expense | 1.03 M | 356 K | 409.4 K | 545.91 K | Gross Profit | 99.09 M | 114.5 M | 131.67 M | 127.52 M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Duck Creek has an asset utilization ratio of 6.82 percent. This implies that the company is making $0.0682 for each dollar of assets. An increasing asset utilization means that Duck Creek Technologies is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets557.5 M | Assets Non Current484.8 M | Goodwill320.8 M | |
| Current Assets | 557.53 Million | 40.85 |
| Assets Non Current | 484.79 Million | 35.52 |
| Goodwill | 320.79 Million | 23.51 |
| Tax Assets | 1.58 Million | 0.12 |
Time to exit of Duck Creek?
Newest kurtosis is at 36.22. Duck Creek Technologies exhibits very low volatility with skewness of -5.28 and kurtosis of 36.22. However, we advise investors to further study Duck Creek 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 Duck Creek's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Duck Creek's 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.
Our Final Take On Duck Creek
Whereas other entities in the software—application industry are either recovering or due for a correction, Duck Creek may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 16th of October 2021, our ongoing 90 days buy-sell recommendation on the firm is
Strong Buy. We believe Duck Creek is
undervalued with
below average probability of distress for the next two years.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile 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 Vlad Skutelnik do not own shares of Duck Creek Technologies. Please refer to our
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