Returns Breakdown
| Return on Assets | (0.0838) | |
| Return on Equity | (0.22) | |
| Return Capital | (0.0893) | |
| Return on Sales | (0.0422) |
Are Digirad (NASDAQ:DRAD) shareholders starting to hold back?
 | By Ellen Johnson | Macroaxis Story |
Digirad Enterprise Value is projected to increase significantly based on the last few years of reporting. The past year's Enterprise Value was at 34.51 Million. The current year Market Capitalization is expected to grow to about 4.9 M, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to about 4.7 M. Today's short post will digest Digirad as your potential position. We will discuss the question of why shareholders should continue to be confident in Digirad outlook.
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Reviewed by Vlad Skutelnik
Digirad has a beta of 1.0053. Let's try to break down what Digirad's beta means in this case. As returns on the market increase, Digirad returns are expected to increase less than the market. However, during the bear market, the loss on holding Digirad will be expected to be smaller as well. The beta indicator helps investors understand whether Digirad moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Digirad deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
How important is Star Equity's Liquidity
Star Equity financial leverage refers to using borrowed capital as a funding source to finance Star Equity Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Star Equity 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 Star Equity'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 Star Equity'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 Star Equity's total debt and its cash.
Breaking down Star Equity Indicators
The latest price surge of Digirad could raise concerns from shareholders as the firm it trading at a share price of 3.59 on very low momentum in volume. The company management teams may have good odds in positioning the firm resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 5.28. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Digirad partners.
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