EMCORE Story

EMKR -- USA Stock

USD 4.58 0.19 3.98%

Macroaxis Story

EMCORE Working Capital is relatively stable at the moment as compared to the past year. EMCORE reported last year Working Capital of 47.44 Million. As of 11/29/2020, PPandE Turnover is likely to grow to 3.46, while Revenue Per Employee is likely to drop slightly above 185.2 K. One of the important factors of profitable assets selection is to know the future growth potential of an asset before buying its shares. This post will sum up EMCORE. We will look into reasons why it is still very possible for the company to generate above-average returns. The entity current odds of financial distress is over 78%. Are EMCORE retail investors still optimistic?

Published over a month ago

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Does EMCORE (NASDAQ:EMKR) have invariable basic indicators based on the latest spike?

On a scale of 0 to 100, EMCORE holds a performance score of 8. The firm owns a Beta (Systematic Risk) of 0.6931, which means possible diversification benefits within a given portfolio. Let's try to break down what EMCORE's beta means in this case. As returns on the market increase, EMCORE returns are expected to increase less than the market. However, during the bear market, the loss on holding EMCORE will be expected to be smaller as well. Although it is vital to follow EMCORE existing price patterns, it is good to be conservative about what you can do with the information regarding equity price patterns. The philosophy in 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 reviewing EMCORE technical indicators, you can right now evaluate if the expected return of 0.34% will be sustainable into the future. Please utilizes EMCORE maximum drawdown, and the relationship between the information ratio and expected short fall to make a quick decision on whether EMCORE current price history will revert.

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include EMCORE income statement, its balance sheet, and the statement of cash flows. Potential EMCORE investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although EMCORE investors may use each financial statement separately, they are all related. The changes in EMCORE's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on EMCORE's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of EMCORE fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of EMCORE performance into the future periods or doing a reasonable stock valuation. The intrinsic value of EMCORE shares is the value that is considered the true value of the share. If the intrinsic value EMCORE is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares EMCORE. Please read more on our fundamental analysis page.

Are EMCORE Earnings Expected to grow?

The future earnings power of EMCORE involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of EMCORE factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. EMCORE stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of EMCORE expected earnings.

How EMCORE utilizes its cash?

To perform a cash flow analysis of EMCORE, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash EMCORE is receiving and how much cash it distributes out in a given period. The EMCORE cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. EMCORE Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. EMCORE reported last year Net Cash Flow from Operations of (4.48 Million)

EMCORE Gross Profit

EMCORE Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing EMCORE previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show EMCORE Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

A Deeper Perspective

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of EMCORE is not uncomon. Many companies such as EMCORE have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of EMCORE is distributed among investors.

Ownership Allocation

EMCORE shows a total of 29.41 Million outstanding shares. Over half of EMCORE outstanding shares are owned by institutions. These institutions are typically referred to corporate investors that obtain positions in a given instrument to benefit from reduced trade commissions. Thereupon, these institutions are subject to different rules and regulation than regular investors in EMCORE. Please watch out for any change in the institutional holdings of EMCORE as this could mean 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.

Retail Investors

27.63%

Insiders

11.21%

Institutions

61.16%

	Retail Investors	27.63
	Insiders	11.21
	Institutions	61.16

	2019	2020 (projected)
PPandE Turnover	2.83	3.46
Calculated Tax Rate	2.24	2.11

PPandE Turnover Calculated Tax Rate

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. EMCORE has an asset utilization ratio of 79.32 percent. This connotes that the company is making $0.79 for each dollar of assets. An increasing asset utilization means that EMCORE is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets

104.9 M

Assets Non Current

38.7 M

Current Assets	104.85 Million	63.41
Assets Non Current	38.67 Million	23.39
Goodwill	284,495	0.17
Tax Assets	21.55 Million	13.03

Our perspective of the latest EMCORE spike

The coefficient of variation is down to 734.6 as of today. EMCORE currently demonstrates below-verage downside deviation. It has Information Ratio of 0.11 and Jensen Alpha of 0.33. However, we do advice investors to further question EMCORE expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On EMCORE

While some other entities within the semiconductors industry are still a little expensive, even after the recent corrections, EMCORE may offer a potential longer-term growth to retail investors. While some retail investors may not share our view, we believe it may be a good time to increase your existing holdings in EMCORE. 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 EMCORE.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test 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 EMCORE. Please refer to our Terms of Use for any information regarding our disclosure principles.

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