Channeladvisor Stock Story


USD 15.53  0.46  2.88%   

Channeladvisor Corp is scheduled to announce its earnings today. Channeladvisor Corp Free Cash Flow is relatively stable at the moment as compared to the past year. The company's current value of Free Cash Flow is estimated at 31.56 Million. Invested Capital is expected to hike to about 63.2 M this year, although the value of Average Assets will most likely fall to nearly 186.7 M. As many baby boomers are still indifferent towards technology space, it makes sense to summarize Channeladvisor Corp as a unique choice for millenniums. We will analyze why Channeladvisor Corp investors may still consider a stake in the business.
Published over three months ago
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Will Channeladvisor Corp (NYSE:ECOM) be in financial trouble before June?

Channeladvisor Corp currently holds 7.37 M in liabilities with Debt to Equity (D/E) ratio of 0.05, which may suggest the firm is not taking enough advantage from borrowing.
The firm shows a Beta (market volatility) of 1.3112, which signifies a somewhat significant risk relative to the market. Let's try to break down what Channeladvisor's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Channeladvisor Corp will likely underperform. Even though it is essential to pay attention to Channeladvisor Corp historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy in foreseeing 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. Channeladvisor Corp exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Channeladvisor Corp has an expected return of -0.64%. Please be advised to confirm Channeladvisor Corp coefficient of variation, semi variance, price action indicator, as well as the relationship between the treynor ratio and daily balance of power to decide if Channeladvisor Corp performance from the past will be repeated at some point in the near future.
Channeladvisor Corp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Channeladvisor Corp, including all of Channeladvisor Corp'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 Channeladvisor Corp assets, the company is considered highly leveraged. Understanding the composition and structure of overall Channeladvisor Corp 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.

Understanding Channeladvisor Total Liabilities

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

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. Please check the breakdown between Channeladvisor Corp's total debt and its cash.

A Deeper look at Channeladvisor

This firm reported the previous year's revenue of 162.6 M. Net Income was 19.67 M with profit before overhead, payroll, taxes, and interest of 114.72 M.

Asset Breakdown

77.6 M
Assets Non Current
31.7 M
35.2 M
Tax Assets
126.2 M
Current Assets
Total Assets203.78 Million
Current Assets126.2 Million
Assets Non Current77.57 Million
Goodwill31.72 Million
Tax Assets35.19 Million

Will Channeladvisor Corp continue to go bonkers?

New market risk adjusted performance is at -0.47. Channeladvisor Corp exhibits very low volatility with skewness of -0.87 and kurtosis of 1.7. However, we advise investors to further study Channeladvisor Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Channeladvisor Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Channeladvisor Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Channeladvisor Corp Implied Volatility

Channeladvisor Corp's implied volatility exposes the market's sentiment of Channeladvisor Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Channeladvisor Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Channeladvisor Corp stock will not fluctuate a lot when Channeladvisor Corp's options are near their expiration.

The Bottom Line

While some other firms in the software—application industry are either recovering or due for a correction, Channeladvisor may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither pick up nor trade any shares of Channeladvisor Corp at this time. The Channeladvisor Corp risk-reward trade off is not appealing enough to do any trading. 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 Corp.

Editorial Staff

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 Gabriel Shpitalnik do not own shares of Channeladvisor Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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