Will Channeladvisor Corp (NYSE:ECOM) new volatility spike continue?
 | By Raphi Shpitalnik | Macroaxis Story |
Given the investment horizon of 60 days Channeladvisor Corp is expected to generate 2.35 times less return on investment than the market. In addition to that, the company is 5.42 times more volatile than its market benchmark. It trades about 0.02 of its total potential returns per unit of risk. The DOW is currently generating roughly 0.23 per unit of volatility. While some of us are excited about technology space, it makes sense to summarize Channeladvisor Corp in greater detail to make a better estimate of its risk and reward. What exactly are Channeladvisor Corp shareholders getting in June? Channeladvisor Corp's seemingly stabilizing volatility may still impact the value of the stock as we estimate Channeladvisor Corp as currently undervalued. The real value, based on our calculations, is getting close to 24.99 per share.
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Reviewed by Michael Smolkin
Channeladvisor Corp currently holds roughly 71.55 M in cash with 34.31 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.46. Volatility is a rate at which the price of ChannelAdvisor Corp or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of ChannelAdvisor Corp may increase or decrease. In other words, similar to ChannelAdvisor's beta indicator, it measures the risk of ChannelAdvisor Corp and helps estimate the fluctuations that may happen in a short period of time. So if prices of ChannelAdvisor Corp fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is ChannelAdvisor Corp's Liquidity
ChannelAdvisor Corp financial leverage refers to using borrowed capital as a funding source to finance ChannelAdvisor Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ChannelAdvisor Corp 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 ChannelAdvisor Corp'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 ChannelAdvisor Corp'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 ChannelAdvisor Corp's total debt and its cash.
A Deeper look at ChannelAdvisor
Channeladvisor Corp reported the previous year's revenue of 145.07 M. Net Income was 18.82 M with profit before overhead, payroll, taxes, and interest of 114.72 M.
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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 ChannelAdvisor Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.