Micronet Stock Story


USD 0.75  0.04  5.63%   

67% of stocks are less volatile than Micronet, and 94% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon. While some risk-loving traders are indifferent towards current market volatility, it is reasonable to review the risk of investing in Micronet Enertec Tec. What exactly are Micronet Enertec shareholders getting in July? The newest Micronet risk factors may impact the value of the stock as we estimate Micronet Enertec as currently undervalued. The real value is approaching 1.56 per share.
Published over a month ago
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Micronet Enertec (NASDAQ:MICT) high volatility trend continues

Micronet Enertec Tec currently holds 2.71 M in liabilities with Debt to Equity (D/E) ratio of 0.02, which may suggest the company is not taking enough advantage from borrowing. The entity has a current ratio of 5.35, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Micronet Enertec until it has trouble settling it off, either with new capital or with free cash flow. So, Micronet Enertec'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 Micronet Enertec Tec sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Micronet to invest in growth at high rates of return. When we think about Micronet Enertec's use of debt, we should always consider it together with cash and equity.
On a scale of 0 to 100, Micronet Enertec holds a performance score of 3. The company secures a Beta (Market Risk) of 1.3847, which conveys a somewhat significant risk relative to the market. Let's try to break down what Micronet's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Micronet Enertec will likely underperform. Although it is vital to follow Micronet Enertec Tec price patterns, it is good to be conservative about what you can do with the information regarding equity historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Micronet Enertec Tec technical indicators, you can presently evaluate if the expected return of 0.34% will be sustainable into the future. Please exercises Micronet Enertec Tec jensen alpha and the relationship between the value at risk and day median price to make a quick decision on whether Micronet Enertec Tec current price movements will revert.
Volatility is a rate at which the price of Micronet Enertec or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Micronet Enertec may increase or decrease. In other words, similar to Micronet's beta indicator, it measures the risk of Micronet Enertec and helps estimate the fluctuations that may happen in a short period of time. So if prices of Micronet Enertec fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

Watch out for price decline

Please consider monitoring Micronet Enertec on a daily basis if you are holding a position in it. Micronet Enertec is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. 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 Micronet Enertec stock to be traded above the $1 level to remain listed. If Micronet Enertec 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 Micronet Enertec's Liquidity

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

How does Micronet utilize its cash?

To perform a cash flow analysis of Micronet Enertec, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Micronet Enertec is receiving and how much cash it distributes out in a given period. The Micronet Enertec cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Micronet Enertec Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Micronet Enertec reported Net Cash Flow from Operations of (33.02 Million) in 2021

Micronet Enertec Volatility Drivers

Micronet Enertec unsystematic risk is unique to Micronet Enertec Tec and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Micronet Enertec you can also buy Velodyne Lidar. You can also mitigate this risk by investing in the computer hardware sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Micronet Enertec important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Micronet Enertec income statement and balance sheet. Here are more details about Micronet volatility.