Digirad Story

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DRAD -- USA Stock  

USD 2.59  0.09  3.36%

In spite of rather uncertain basic indicators, Digirad may actually be approaching a critical reversion point that can send shares even higher in September 2020. We currently estimate Digirad as undervalued. The real value is approaching 4.01 per share.
Published over a month ago
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Does Digirad (NASDAQ:DRAD) have sound basic indicators based on the latest surge?
We provide trade advice to complement the prevailing expert consensus on Digirad. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. The company dividends can provide a clue to the current value of the stock. This firm one year expected dividend income is about $0.02 per share.
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 Digirad income statement, its balance sheet, and the statement of cash flows. Potential Digirad investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Digirad investors may use each financial statement separately, they are all related. The changes in Digirad's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Digirad'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 Digirad fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Digirad performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Digirad shares is the value that is considered the true value of the share. If the intrinsic value Digirad 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 Digirad. Please read more on our fundamental analysis page.

How important is Digirad's Liquidity

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

How Digirad utilizes its cash?

To perform a cash flow analysis of Digirad, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Digirad is receiving and how much cash it distributes out in a given period. The Digirad cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Digirad Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 400,000

Digirad Gross Profit

Digirad Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Digirad previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Digirad Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

A Deeper Perspective

The entity reported the previous year's revenue of 119.13 M. Net Loss for the year was (7.27 M) with profit before overhead, payroll, taxes, and interest of 22.11 M.
 2017 2018 2019 2020 (projected)
Revenues USD104.63 M104.18 M114.19 M104.53 M
Revenues104.63 M104.18 M114.19 M104.53 M

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Digirad has an asset utilization ratio of 185.81 percent. This indicates that the company is making $1.86 for each dollar of assets. An increasing asset utilization means that Digirad is more efficient with each dollar of assets it utilizes for everyday operations.

Assets Non Current
65.8 M
Goodwill
35.5 M
Current Assets30.07 Million18.68
Assets Non Current65.83 Million40.91
Goodwill35.48 Million22.05
Tax Assets29.55 Million18.36

Analysis of Digirad

The market risk adjusted performance is down to 0.51 as of today. As of the 13th of August 2020, Digirad shows the Coefficient Of Variation of 1242.0, mean deviation of 5.7, and Downside Deviation of 6.17. Digirad technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for Digirad, which can be compared to its rivals. Please confirm Digirad coefficient of variation, maximum drawdown, skewness, as well as the relationship between the information ratio and downside variance to decide if Digirad is priced favorably, providing market reflects its regular price of 3.4 per share. Given that Digirad has jensen alpha of 0.2972, we urge you to verify Digirad's prevailing market performance to make sure the company can sustain itself at a future point.

Our Bottom Line On Digirad

Although other entities in the medical devices industry are either recovering or due for a correction, Digirad may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 13th of August 2020, we believe that at this point, Digirad is undervalued with above average chance of bankruptcy within the next 2 years. Our present buy-or-sell advice on the firm is Cautious 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 Raphi Shpitalnik do not own shares of Digirad. Please refer to our Terms of Use for any information regarding our disclosure principles.

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