Dynatronics Story

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DYNT -- USA Stock  

USD 0.71  0.03  4.41%

Dynatronics is scheduled to announce its earnings today. The stock is currently undergoing an unusual volatility. Dynatronics Price to Sales Ratio is comparatively stable at the moment as compared to the past year. Dynatronics reported Price to Sales Ratio of 0.17 in 2019. Sales per Share is likely to gain to 7.18 in 2020, whereas Earnings before Tax are likely to drop (3.5 M) in 2020. As many millenniums are trying to avoid healthcare space, it makes sense to review Dynatronics a little further and try to understand its current market patterns.
Published over a week ago
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Will Dynatronics (NASDAQ:DYNT) be in financial trouble before December?
Dynatronics currently holds 10.89 M in liabilities with Debt to Equity (D/E) ratio of 0.55, which is about average as compared to similar companies. The firm shows a Beta (market volatility) of 0.2016, which means not very significant fluctuations relative to the market. Let's try to break down what Dynatronics's beta means in this case. As returns on the market increase, Dynatronics returns are expected to increase less than the market. However, during the bear market, the loss on holding Dynatronics will be expected to be smaller as well. Even though it is essential to pay attention to Dynatronics historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards predicting any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Dynatronics exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Dynatronics has an expected return of -0.43%. Please be advised to confirm Dynatronics maximum drawdown, as well as the relationship between the skewness and day typical price to decide if Dynatronics stock performance from the past will be repeated at some point in the near future.
Dynatronics financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Dynatronics, including all of Dynatronics'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 Dynatronics assets, the company is considered highly leveraged. Understanding the composition and structure of overall Dynatronics 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 Dynatronics on a daily bases if you are holding a position in it. Dynatronics 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 Dynatronics stock to be traded above the $1 level to remain listed. If Dynatronics 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 Dynatronics Total Liabilities

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

How important is Dynatronics's Liquidity

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

Detailed Perspective On Dynatronics

The entity reported the previous year's revenue of 53.41 M. Net Loss for the year was (4.32 M) with profit before overhead, payroll, taxes, and interest of 15.1 M.

Asset Breakdown

23.2 M
Assets Non Current
13.8 M
Goodwill
16.2 M
Current Assets
Total Assets33.17 Million
Current Assets16.19 Million
Assets Non Current23.22 Million
Goodwill13.81 Million
Tax Assets88,212.77

Our perspective of the newest Dynatronics gain

Newest kurtosis is at -0.3. Dynatronics exhibits very low volatility with skewness of 0.04 and kurtosis of -0.3. However, we advise investors to further study Dynatronics technical indicators to make sure all market info is available and is reliable. Dynatronics is a potential penny stock. Although Dynatronics may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Dynatronics. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

The Current Takeaway on Dynatronics Investment

Whereas some companies under the medical devices industry are still a bit expensive, Dynatronics may offer a potential longer-term growth to private investors. In closing, as of the 12th of November 2020, we believe that Dynatronics is currently undervalued with below average probability of bankruptcy in the next two years. However, our current 30 days advice on the firm is Strong Sell.

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 Vlad Skutelnik do not own shares of Dynatronics. Please refer to our Terms of Use for any information regarding our disclosure principles.

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