ChannelAdvisor Story

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ECOM -- USA Stock  

USD 14.40  0.43  3.08%

While some of us are excited about technology space, it makes sense to summarize ChannelAdvisor in greater detail to make a better assessment of its actual value. Why are we still confident in anticipation of a complete recovery. Is the firm current valuation justified? We will cover ChannelAdvisor valuation to give you a better outlook on taking a position in the stock.
Published over a month ago
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Is ChannelAdvisor (NYSE:ECOM) ready for a correction?
ChannelAdvisor currently holds 15.14 M in liabilities with Debt to Equity (D/E) ratio of 0.15, which may suggest ChannelAdvisor is not taking enough advantage from borrowing. This firm has a current ratio of 2.47, suggesting that it is liquid enough and is able to pay its financial obligations when due. ChannelAdvisor holds a performance score of 14 on a scale of zero to a hundred. The firm shows a Beta (market volatility) of 0.7868, which signifies possible diversification benefits within a given portfolio. Let's try to break down what ChannelAdvisor's beta means in this case. As returns on the market increase, ChannelAdvisor returns are expected to increase less than the market. However, during the bear market, the loss on holding ChannelAdvisor will be expected to be smaller as well. Although it is vital to follow ChannelAdvisor historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. Our philosophy in foreseeing future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if ChannelAdvisor expected return of 1.13 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use ChannelAdvisor coefficient of variation, as well as the relationship between the treynor ratio and semi variance to analyze future returns on ChannelAdvisor.
We determine the current worth of ChannelAdvisor using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of ChannelAdvisor based exclusively on its fundamental and basic technical indicators. By analyzing ChannelAdvisor's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of ChannelAdvisor's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of ChannelAdvisor. We calculate exposure to ChannelAdvisor's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to ChannelAdvisor's related companies.

ChannelAdvisor Investment Alerts

ChannelAdvisor investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring ChannelAdvisor performance across your portfolios.Please check all investment alerts for ChannelAdvisor

ChannelAdvisor Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare ChannelAdvisor value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across ChannelAdvisor competition to find correlations between indicators driving the intrinsic value of ChannelAdvisor.

How ChannelAdvisor utilizes its cash?

To perform a cash flow analysis of ChannelAdvisor, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash ChannelAdvisor is receiving and how much cash it distributes out in a given period. The ChannelAdvisor cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. ChannelAdvisor Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 14.03 Million

Breaking it down a bit more

The company reported the previous year's revenue of 130.42 M. Net Income was 7.82 M with profit before overhead, payroll, taxes, and interest of 101.19 M.

Margins Breakdown

ChannelAdvisor profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or ChannelAdvisor itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of ChannelAdvisor profit margins.
Operating Margin3.16
EBITDA Margin0.0809
Gross Margin0.83
Profit Margin0.0292


ChannelAdvisor Earnings Before Interest Taxes and Depreciation Amortization USD is relatively stable at the moment. Further, ChannelAdvisor Average Assets is relatively stable at the moment.

Our ChannelAdvisor analysis denotes possible reversion in September

New semi variance is at 14.33. ChannelAdvisor shows above-average downside volatility for the selected time horizon. We advise investors to inspect ChannelAdvisor further and ensure that all market timing and asset allocation strategies are consistent with the estimation of ChannelAdvisor future alpha.

Our Final Takeaway

While some other companies under the software?application industry are still a bit expensive, ChannelAdvisor may offer a potential longer-term growth to stakeholders. The inconsistency in the assessment between current ChannelAdvisor valuation and our trade advice on ChannelAdvisor is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to ChannelAdvisor.

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 Achuva Shats do not own shares of ChannelAdvisor. Please refer to our Terms of Use for any information regarding our disclosure principles.

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