What is April outlook for InTest (USA Stocks:INTT)?

INTT Stock  USD 20.30  0.44  2.12%   
InTest is scheduled to announce its earnings today. The next financial report is expected on the 5th of May 2023. InTest Market Capitalization is comparatively stable at the moment as compared to the past year. InTest reported Market Capitalization of 159.06 Million in 2022. Interest Coverage is likely to gain to 1.31 in 2023, whereas Tangible Asset Value is likely to drop slightly above 58.5 M in 2023. As many millenniums are trying to avoid semiconductors & semiconductor equipment space, it makes sense to review InTest a little further and try to understand its current market patterns.
Published over two weeks ago
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Reviewed by Michael Smolkin

This firm currently holds 16 M in liabilities with Debt to Equity (D/E) ratio of 0.38, which is about average as compared to similar companies. The company has a current ratio of 2.09, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist InTest until it has trouble settling it off, either with new capital or with free cash flow. So, InTest's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like InTest sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for InTest to invest in growth at high rates of return. When we think about InTest's use of debt, we should always consider it together with cash and equity.
InTest financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of InTest, including all of InTest'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 InTest assets, the company is considered highly leveraged. Understanding the composition and structure of overall InTest 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 InTest Total Liabilities

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

How important is InTest's Liquidity

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

Detailed Perspective On InTest

InTest reported the previous year's revenue of 84.88 M. Net Income was 7.28 M with profit before overhead, payroll, taxes, and interest of 41.22 M.

Liabilities Breakdown

Tax Liabilities
31.1 M
Current Liabilities
29.8 M
Long-Term Liabilities
Total Liabilities60.9 Million
Current Liabilities31.11 Million
Long-Term Liabilities29.79 Million
Tax Liabilities3.2 Million

Is InTest showing indication of lower volatility?

InTest newest potential upside boosts over 6.18. InTest currently demonstrates below-average downside deviation. It has Information Ratio of 0.18 and Jensen Alpha of 0.58. However, we advise investors to further question InTest 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 InTest's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact InTest'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.

The Bottom Line

Whereas few other entities in the semiconductor equipment & materials industry are either recovering or due for a correction, InTest may not be as strong as the others in terms of longer-term growth potentials. While some private investors may not share our view, we believe it may be a good time to increase your existing holdings in InTest as the risk-reward trade off is appealing enough to hold a position. 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 InTest.

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

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