GTT Communications Stock Story

Global Telcom Market Capitalization is comparatively stable at the moment as compared to the past year. Global Telcom reported Market Capitalization of 739.43 Million in 2020. Tangible Asset Value is likely to gain to about 3.1 B in 2021, whereas Working Capital is likely to drop (214.8 M) in 2021. In this article, we will review Global Telcom as a potential position in addition to your existing holdings. We will break down why it could be a game-changer for Global Telcom private investors.
Published over a month ago
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Our projection for Global Telcom (NYSE:GTT) in July
The company has a beta of -0.7076. Let's try to break down what Global'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, Global Telcom will likely underperform. The beta indicator helps investors understand whether Global Telcom moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Global deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.

How important is GTT Communications's Liquidity

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

How GTT Communications utilizes its cash?

To perform a cash flow analysis of GTT Communications, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash GTT Communications is receiving and how much cash it distributes out in a given period. The GTT Communications cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
GTT Communications Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. GTT Communications reported Net Cash Flow from Operations of 123.17 Million in 2020

Detailed Perspective On GTT Communications

The newest price gain of Global Telcom may raise some interest from private investors. The stock closed today at a share price of 3.49 on 143,779,400 in trading volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in July. The stock standard deviation of daily returns for 90 days investing horizon is currently 10.75. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Global Telcom Technology partners.

Margin Breakdown

Operating Margin6.93
EBITDA Margin0.18
Gross Margin0.5
Profit Margin(0.0592)

Are Global Telcom technical ratios showing a bounce back?

Newest coefficient of variation is at 1167.31. Global Telcom Technology is displaying above-average volatility over the selected time horizon. Investors should scrutinize Global Telcom Technology independently to ensure intended market timing strategies are aligned with expectations about Global Telcom volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Global Telcom'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 Global Telcom'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 Bottom Line On Global Telcom Technology

Whereas many other companies within the telecom services industry are still a little expensive, even after the recent corrections, Global Telcom may offer a potential longer-term growth to private investors. In closing, as of the 4th of June 2021, we believe that at this point, Global Telcom is overvalued with below average odds of financial distress within the next 2 years. Our actual buy vs. sell advice on the firm is Strong Sell.

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 Vlad Skutelnik do not own shares of GTT Communications. Please refer to our Terms of Use for any information regarding our disclosure principles.

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