Should you pay attention to changing Ion Geophysical (NYSE:IO) fundamentals?

Ion Geophysical Invested Capital Average is quite stable at the moment as compared to the past year. The company's current value of Invested Capital Average is estimated at 223.31 Million. Market Capitalization is expected to rise to about 126.5 M this year, although the value of Net Income Per Employee will most likely fall to (100.2 K). If you have been following Ion Geophysical you may be considering picking up. Let's check if persistent technical and fundamental indicators will continue to push the price to rise for Ion Geophysical's institutional investors. Will institutional investors continue to hold, or should we expect a sell-off?
Published over a year ago
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Reviewed by Raphi Shpitalnik

Ion Geophysical is UNDERVALUED at 2.57 per share with modest projections ahead. We consider Ion Geophysical very risky. Ion Geophysical holds Efficiency (Sharpe) Ratio of 0.0218, which attests that the entity had 0.0218% of return per unit of risk over the last month. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Ion Geophysical, which you can use to evaluate future volatility of the firm. Please check out Ion Geophysical risk adjusted performance of (0.07), and Market Risk Adjusted Performance of 19.0 to validate if the risk estimate we provide is consistent with the expected return of 0.17%.
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 ION Geophysical income statement, its balance sheet, and the statement of cash flows. Potential ION Geophysical investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although ION Geophysical investors may use each financial statement separately, they are all related. The changes in ION Geophysical's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on ION Geophysical'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 ION Geophysical fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of ION Geophysical performance into the future periods or doing a reasonable stock valuation. The intrinsic value of ION Geophysical shares is the value that is considered the true value of the share. If the intrinsic value of ION 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 ION Geophysical. Please read more on our fundamental analysis page.

Watch out for price decline

Please consider monitoring ION Geophysical on a daily basis if you are holding a position in it. ION Geophysical is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as ION Geophysical stock to be traded above the $1 level to remain listed. If ION Geophysical stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is ION Geophysical's Liquidity

ION Geophysical financial leverage refers to using borrowed capital as a funding source to finance ION Geophysical ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ION Geophysical 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. Financial leverage can amplify the potential profits to ION Geophysical's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of ION Geophysical's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between ION Geophysical's total debt and its cash.

A Deeper look at ION

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 Ion Geophysical is not uncomon. There are few distinct groups of Ion Geophysical stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Ion Geophysical is distributed among investors.

Ownership Allocation

Ion Geophysical has a total of fifteen million ten thousand outstanding shares. Ion Geophysical secures significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how much assets the company holds, if the real value of the firm is less than the current market value, you may not be able to make money on it.
Retail Investors
23.37%
Insiders
28.35%
Institutions
48.28%
Retail Investors23.37
Insiders28.35
Institutions48.28

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Ion Geophysical has an asset utilization ratio of 40.24 percent. This suggests that the company is making $0.4 for each dollar of assets. An increasing asset utilization means that Ion Geophysical is more efficient with each dollar of assets it utilizes for everyday operations.
Current Assets
95.1 M
Assets Non Current
192.1 M
Goodwill
121.7 M
Current Assets95.06 Million22.65
Assets Non Current192.08 Million45.76
Goodwill121.66 Million28.98
Tax Assets10.95 Million2.61

Over 3 percent rise for Ion Geophysical. What does it mean for institutional investors?

The coefficient of variation is down to -1381.32 as of today. Ion Geophysical is displaying above-average volatility over the selected time horizon. Investors should scrutinize Ion Geophysical independently to ensure intended market timing strategies are aligned with expectations about Ion Geophysical volatility.

Our Final Takeaway

Whereas many other companies under the oil & gas equipment & services industry are still a bit expensive, Ion Geophysical may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 Ion Geophysical.

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

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