All that glitters is not gold, and the same could be said about KVH Industries, a prominent player in the Communication Equipment industry listed on NASDAQ. Despite the company's negative momentum indicators and daily balance of power, analysts are rallying behind this stock with an overall consensus of 'Buy'. With an analyst target price estimated value of $9, significantly higher than the current typical day price of $4.52, there's potential for substantial gains. However, traders should also consider the possible downside price of $1.63. Is KVH Industries the diamond in the rough investors have been searching for? Only time will tell. We primarily analyze the price patterns of KVH Industries (USA Stocks: KVHI) and their correlation with various microeconomic environments and drivers. We also utilize predictive analytics to construct daily price indicators for KVH Industries and compare them with related drivers. Today's discussion focuses on why we maintain our confidence in the potential recovery of KVH Industries.
The successful prediction of KVH Industries
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as KVH Industries, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of KVH Industries based on KVH Industries hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to KVH Industries's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to KVH Industries's related companies.
Use Technical Analysis to project KVH expected Price
KVH Industries technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of KVH Industries technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of KVH Industries trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...KVH Industries Gross Profit
KVH Industries Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing KVH Industries previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show KVH Industries Gross Profit growth over the last 10 years. Please check KVH Industries'
gross profit and other
fundamental indicators for more details.
What is the case for KVH Industries Investors
The company reported the previous year's revenue of 137.41
M. Net Loss for the year was (2.74
M) with profit before overhead, payroll, taxes, and interest of 52.67
M.
| 2023 | 2024 (projected) |
Dividend Yield | 0.005457 | 0.003866 | Price To Sales Ratio | 1.58 | 1.76 |
Current Deferred Revenue Breakdown
KVH Industries' Current Deferred Revenue is increasing with very volatile movements from year to year. Current Deferred Revenue is predicted to flatten to about 2.7
M. Current Deferred Revenue usually refers to revenue that has been collected but not yet earned, typically from prepaid service contracts or subscriptions. This amount is considered a liability until the service is provided or the subscription period ends. As of now, KVH Industries' Current Deferred Revenue is increasing as compared to previous years.
| 2017 | 6.92 Million |
| 2018 | 9.19 Million |
| 2019 | 4.44 Million |
| 2020 | 4.45 Million |
| 2021 | 3.99 Million |
| 2022 | 3.11 Million |
| 2023 | 2.8 Million |
| 2024 | 2.66 Million |
As Benjamin Franklin once said, an investment in knowledge pays the best interest. KVH Industries, a technology company specializing in communications equipment, could be the next big investment opportunity for traders. Despite a negative income, the company has a strong working capital of $92.33M and cash flow from operations of $7.68M. The low Price to Earnings ratio of 4.20X and Price to Book ratio of 0.56X suggest the stock is undervalued. However, with a 1% probability of bankruptcy and a short ratio of 6.62X, investors should be cautious and thoroughly assess the risk before investing.
Our take on KVH Industries to slide back
KVH Industries' recent stock performance is lackluster, with the market risk-adjusted performance declining to 0.17. This suggests the company's returns are insufficient to offset its risk levels, hinting at a potential future downturn. Investors should heed this downward trend when making investment decisions. KVH Industries has low volatility, with a skewness of 0.2 and kurtosis of 0.74. However, we recommend investors further explore KVH Industries' technical indicators to ensure all market information is current and reliable. Understanding
market volatility trends can help investors time the market effectively. Volatility indicators can measure KVH Industries' stock risk against market volatility in both bullish and bearish trends. The heightened volatility of bear markets can affect
KVH Industries' stock price and cause investor stress as share values decrease.
This often prompts investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, despite the recent 4 percent drop, KVH Industries (KVHI) still holds potential for investors. The analyst overall consensus leans towards a 'Buy' with one confirmed buy recommendation. The valuation real value stands at
$5.46, which is higher than the current market value of
$4.45. This suggests that the stock is undervalued and could present a buying opportunity. However, investors should be aware of the possible downside price of $1.63. The analyst target price estimated value is $9, indicating a potential upside if the company meets these expectations. Therefore, investors should carefully consider their risk tolerance and investment strategy before investing in KVH Industries. .
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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