IMAGEWARE Story

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IWSY -- USA Stock  

USD 0.09  0.01  12.50%

While some baby boomers are getting worried about technology space, it is reasonable to break down IMAGEWARE SYSTEMS INC. We will try to explain if it is still possible for IMAGEWARE SYSTEMS to generate above-average margins. Is the firm valuation sustainable? Here I will cover a perspective on valuation of IMAGEWARE to give you a better outlook on taking a position in this stock.
Published over a month ago
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Will IMAGEWARE SYSTEMS (OTC:IWSY) price increase in September 2020?
This firm currently holds 2.35 M in liabilities with Debt to Equity (D/E) ratio of 39.2, indicating IMAGEWARE SYSTEMS may have difficulties to generate enough cash to satisfy its financial obligations. The company has a current ratio of 0.33, indicating that it has a negative working capital and may not be able to pay financial obligations when due. We provide trade recommendation to complement the latest expert consensus on IMAGEWARE SYSTEMS INC. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available right now.
We determine the current worth of IMAGEWARE SYSTEMS INC using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of IMAGEWARE SYSTEMS INC based exclusively on its fundamental and basic technical indicators. By analyzing IMAGEWARE SYSTEMS's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of IMAGEWARE SYSTEMS's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of IMAGEWARE SYSTEMS. We calculate exposure to IMAGEWARE SYSTEMS's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to IMAGEWARE SYSTEMS's related companies.

Watch out for price decline

Please consider monitoring IMAGEWARE SYSTEMS on a daily bases if you are holding a position in it. IMAGEWARE SYSTEMS is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the otc stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as IMAGEWARE SYSTEMS stock to be traded above the $1 level to remain listed. If IMAGEWARE SYSTEMS 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.

IMAGEWARE SYSTEMS INC Investment Alerts

IMAGEWARE investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring IMAGEWARE SYSTEMS INC performance across your portfolios.Please check all investment alerts for IMAGEWARE

IMAGEWARE SYSTEMS Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare IMAGEWARE value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across IMAGEWARE SYSTEMS competition to find correlations between indicators driving the intrinsic value of IMAGEWARE.

How IMAGEWARE utilizes its cash?

To perform a cash flow analysis of IMAGEWARE SYSTEMS, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash IMAGEWARE SYSTEMS is receiving and how much cash it distributes out in a given period. The IMAGEWARE SYSTEMS cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. IMAGEWARE SYSTEMS Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. IMAGEWARE SYSTEMS reported Net Cash Flow from Operations of (11.27 Million) in 2019

Disposition of 100000 shares by Wayne Wetherell of IMAGEWARE SYSTEMS subject to Rule 16b-3

Legal trades by IMAGEWARE SYSTEMS insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
IMAGEWARE insider trading alert for disposition of stock option (right to buy) by Wayne Wetherell, the corporate stakeholder, on 19th of August 2020. This event was filed by Imageware Systems Inc with SEC on 2020-08-19. Statement of changes in beneficial ownership - SEC Form 4. Wayne Wetherell currently serves as cfo, sr. vp of admin., treasurer and secretary of IMAGEWARE SYSTEMS INC [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving IMAGEWARE SYSTEMS Investor Appetite?

IMAGEWARE SYSTEMS INC reported the previous year's revenue of 3.37 M. Net Loss for the year was (16.84 M) with profit before overhead, payroll, taxes, and interest of 2.86 M.
 2017 2018 2019 2020 (projected)
Revenues USD4.29 M4.4 M3.51 M3.82 M
Revenues4.29 M4.4 M3.51 M3.82 M

Margins Breakdown

IMAGEWARE profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or IMAGEWARE SYSTEMS itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of IMAGEWARE SYSTEMS profit margins.
EBITDA Margin(3.39)
Gross Margin0.85
Profit Margin(5.05)


IMAGEWARE SYSTEMS Earnings before Tax is fairly stable at the moment. Also, IMAGEWARE SYSTEMS Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years. The previous year's value of IMAGEWARE SYSTEMS Earnings Before Interest Taxes and Depreciation Amortization EBITDA was -12,505,000.

Our perspective of the current IMAGEWARE SYSTEMS rise

Current Risk Adjusted Performance is up to 0.02. Price may slide again. As of the 19th of August, IMAGEWARE SYSTEMS owns the Semi Deviation of 8.19, market risk adjusted performance of (0.07), and Downside Deviation of 9.87. IMAGEWARE SYSTEMS INC technical analysis makes it possible for you to employ past data patterns with the intention to determine a pattern that calculates the direction of the firm's future prices. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume patterns, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for IMAGEWARE SYSTEMS, which can be compared to its peers in the sector. Please check out IMAGEWARE SYSTEMS INC downside deviation, treynor ratio, expected short fall, as well as the relationship between the variance and potential upside to decide if IMAGEWARE SYSTEMS INC is priced adequately, providing market reflects its prevailing price of 0.11 per share. As IMAGEWARE SYSTEMS INC appears to be a penny stock we also urge to confirm its total risk alpha numbers.

Our Final Take On IMAGEWARE SYSTEMS

While few other entities in the software?application industry are either recovering or due for a correction, IMAGEWARE may not be as strong as the others in terms of longer-term growth potentials. On the whole, as of the 19th of August 2020, our concluding 30 days buy-hold-sell recommendation on the company is Strong Sell. However, we believe IMAGEWARE SYSTEMS is undervalued with very high odds of distress for the next two years.

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 IMAGEWARE SYSTEMS INC. Please refer to our Terms of Use for any information regarding our disclosure principles.

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