Exfo Story

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EXFO -- USA Stock  

USD 3.93  0.03  0.77%

Exfo Working Capital is quite stable at the moment as compared to the past year. The company's current value of Working Capital is estimated at 32.53 Million. Asset Turnover is expected to rise to 1.07 this year, although the value of Average Assets will most likely fall to about 254.7 M. While many traders are getting carried away by overanalyzing technology space, it is reasonable to outline Exfo Inc. We will analyze why it could be a much better year for Exfo shareholders. This post is to show some fundamental factors affecting Exfo's products and services. I will also disclose how it may impact the investing outlook for Exfo in May.
Published few days ago
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Should you hold on to your Exfo position?
About 17.0% of Exfo shares are held by company insiders. Insiders ownership of Exfo Inc refers to the amount of Exfo Inc equity owned by Exfo officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of Exfo, including its current ownership diagnostics.

How important is Exfo's Liquidity

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

How Exfo utilizes its cash?

To perform a cash flow analysis of Exfo, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Exfo is receiving and how much cash it distributes out in a given period. The Exfo cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Exfo Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (1.97 Million)

What is driving Exfo Investor Appetite?

Exfo Inc retains a total of 25.68 Million outstanding shares. Exfo Inc shows significant amount of outstanding shares owned by insiders and institutional investors .Since such a large part of the company is not owned by regular investors, we recommend to check if there were significant buying or selling the Exfo Inc stock in recent months. 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.
 2018 2019 2020 2021 (projected)
Revenues USD286.89 M265.58 M305.42 M303.66 M
Revenues286.89 M265.58 M305.42 M303.66 M

Ownership Breakdown

Retail Investors
59.53%
Insiders
17.45%
Institutions
23.02%
Retail Investors59.53
Insiders17.45
Institutions23.02

Our take on Exfo small slide

Exfo latest information ratio surges over 0.12. Exfo Inc currently demonstrates below-average downside deviation. It has Information Ratio of 0.12 and Jensen Alpha of 0.48. However, we advise investors to further question Exfo Inc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Exfo'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 Exfo'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.

Our Final Takeaway

Whereas other companies under the communication equipment industry are still a bit expensive, Exfo may offer a potential longer-term growth to institutional investors. Taking everything into account, as of the 6th of April 2021, we believe Exfo is currently overvalued. It moves indifferently to market moves and projects low probability of bankruptcy in the next two years. Our primary 30 days Buy-Hold-Sell recommendation on the company is Cautious Hold.

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 Exfo Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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