IDT Story

<div class='circular--portrait' style='background:#169D0B;color: #E6E6FA;font-size:3em;'>IDT</div>
IDT -- USA Stock  

USD 10.47  0.03  0.29%

As many rational traders are trying to avoid communication services space, it makes sense to review IDT Corporation a little further and understand how it stands against Cellcom Israel and other similar entities. We are going to break down some of the competitive aspects of both IDT and Cellcom.
Published over two weeks ago
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What is our outlook on IDT (NYSE:IDT) and Cellcom (NYSE:CEL)?
By analyzing existing fundamental indicators between IDT and Cellcom, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Cellcom with a short position in IDT. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. IDT has an asset utilization ratio of 285.31 percent. This implies that the company is making $2.85 for each dollar of assets. An increasing asset utilization means that IDT Corporation is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as IDT or Cincinnati is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is IDT's Liquidity

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

Correlation Between IDT and Cincinnati Bell

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding IDT together with similar or unrelated positions with a negative correlation. For example, you can also add Cincinnati Bell to your portfolio. If Cincinnati Bell is not perfectly correlated to IDT it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When IDT for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between IDT and CBB for more information.

Note

Are you currently holding both IDT and Cincinnati Bell in your portfolio? Please note if you are using this as a pair-trade strategy between IDT and Cincinnati Bell, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Is IDT valued wisely by the market?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now go over IDT revenue. Based on the latest financial disclosure, IDT Corporation reported 1.34 B of revenue. This is 90.89% lower than that of the Communication Services sector and 93.84% lower than that of the Telecom Services industry. The revenue for all United States stocks is 85.8% higher than that of the firm. As for Cellcom Israel we see revenue of 1.03 B, which is 95.27% lower than that of the Telecom Services

Sector
9.4 B
IDT1.34 Billion11.35
Sector9.43 Billion79.92
CEL1.03 Billion8.73

Can IDT build up on the newest gain?

The maximum drawdown is down to 25.64 as of today. IDT Corporation shows above-average downside volatility for the selected time horizon. We advise investors to inspect IDT Corporation further and ensure that all market timing and asset allocation strategies are consistent with the estimation of IDT future alpha.

Our Final Takeaway

Whereas some other entities under the telecom services industry are still a bit expensive, IDT may offer a potential longer-term growth to private investors. The inconsistency in the assessment between current IDT valuation and our trade advice on IDT is due to the recent market swings and your selection of investing horizon. 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 IDT.

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 Raphi Shpitalnik do not own shares of IDT Corporation. Please refer to our Terms of Use for any information regarding our disclosure principles.

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