D S P is undervalued at 19.46 per share with modest projections ahead.
D S has
performance score of 6 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.1533, which means not very significant fluctuations relative to the market. Let's try to break down what D S's beta means in this case. As returns on the market increase, D S returns are expected to increase less than the market. However, during the bear market, the loss on holding D S will be expected to be smaller as well. Although it is extremely important to respect
D S P historical returns, it is better to be realistic regarding the information on equity current trending patterns. The approach to predicting
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By analyzing
D S P technical indicators, you can at this moment evaluate if the expected return of 0.18% will be sustainable into the future.
D S P today shows a risk of 2.05%. Please confirm D S P
variance,
maximum drawdown, as well as the
relationship between the Maximum Drawdown and
semi variance to decide if D S P will be following its
price patterns.
How important is DSP's Liquidity
DSP
financial leverage refers to using borrowed capital as a funding source to finance DSP Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. DSP 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 DSP'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 DSP'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 DSP's total debt and its cash.
Going after DSP Financials
D S P retains a total of 24.23 Million outstanding shares. The majority of D S P
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in D S P to benefit from reduced commissions. Hence, institutional investors are subject to a different set of regulations than regular investors in D S. Please pay attention to any change in the institutional holdings of D S P as this could imply that something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently
losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.
| 2018 | 2019 | 2020 | 2021 (projected) |
Revenues USD | 117.44 M | 117.61 M | 114.48 M | 122.75 M | Revenues | 117.44 M | 117.61 M | 114.48 M | 122.75 M |
Ownership Breakdown
Retail Investors6.1% | Insiders7.86% | Institutions86.04% |
| Retail Investors | 6.1 |
| Insiders | 7.86 |
| Institutions | 86.04 |
Momentum Analysis of D S suggests possible reversal in September
The semi variance is down to 2.31 as of today.
As of the 2nd of August, D S shows the Downside Deviation of 1.69,
mean deviation of 1.51, and Market Risk Adjusted Performance of 1.4. D S P
technical analysis allows you to utilize
historical prices and volume patterns in order to determine a pattern that computes the direction of the entity's future prices. Put another way, you can use this information to find out if the entity 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 D S P, which can be compared to its rivals. Please confirm
D S P variance,
maximum drawdown, as well as the
relationship between the Maximum Drawdown and
semi variance to decide if D S P is priced correctly, providing market reflects its regular price of 16.05 per share. Given that D S has
jensen alpha of 0.2091, we urge you to verify D S P's prevailing market performance to make sure the company can sustain itself sooner or later.
Our Final Take On D S
Although some companies within the semiconductors industry are still a little expensive, even after the recent corrections, D S may offer a potential longer-term growth to shareholders. To conclude, as of the 2nd of August 2021, our primary 90 days recommendation on the firm is
Strong Buy. We believe D S is
undervalued with
very small probability of distress for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of DSP Group. Please refer to our
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