Mitcham Story

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MIND -- USA Stock  

USD 2.15  0.06  2.71%

Mitcham Industries is scheduled to announce its earnings tomorrow. Mitcham Industries Average Assets are projected to decrease significantly based on the last few years of reporting. The past year's Average Assets were at 62.03 Million. The current year Average Equity is expected to grow to about 73.7 M, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to (2.7 M). As many passive investors are finally getting excited about technology space, Mitcham Industries could be a good starting point. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over three months ago
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Will Mitcham (NASDAQ:MIND) stakeholders stop to short in October?
The company currently holds 1.96 M in liabilities with Debt to Equity (D/E) ratio of 0.05, which may suggest Mitcham Industries is not taking enough advantage from borrowing. Mitcham Industries has a current ratio of 3.32, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Mitcham Industries financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Mitcham Industries, including all of Mitcham Industries'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 Mitcham Industries assets, the company is considered highly leveraged. Understanding the composition and structure of overall Mitcham Industries 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 Mitcham Total Liabilities

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

How important is Mitcham Industries's Liquidity

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

What is the case for Mitcham Industries Investors

The latest surge in Mitcham Industries short term price appreciation may encourage shareholders to take a closer look at the firm as it is trading at a share price of 2.33 on slow start in trading volume. The company executives have successfully maneuvered the firm at convenient times to take advantage of all market conditions in August. The stock standard deviation of daily returns for 30 days investing horizon is currently 6.88. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Mitcham Industries partners.

Liabilities Breakdown

9.5 M
Current Liabilities
2.2 M
Long-Term Liabilities
Total Liabilities15.87 Million
Current Liabilities9.51 Million
Long-Term Liabilities2.18 Million
Tax Liabilities248,368

Analysis of Mitcham Industries

The downside deviation is down to 5.8 as of today. As of the 13th of September 2020, Mitcham Industries secures the Risk Adjusted Performance of 0.0967, downside deviation of 5.8, and Mean Deviation of 5.18. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Mitcham Industries, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We have analyze and collected data for nineteen technical drivers for Mitcham Industries, which can be compared to its peers in the industry. Please verify Mitcham Industries information ratio, value at risk, as well as the relationship between the Value At Risk and expected short fall to decide if Mitcham Industries is priced some-what accurately, providing market reflects its recent price of 2.33 per share. Please also check out Mitcham Industries total risk alpha, which is currently at 0.2413 to check the company can sustain itself at a future point.

The Current Takeaway on Mitcham Industries Investment

Although many of the other players in the scientific & technical instruments industry are either recovering or due for a correction, Mitcham Industries may not be performing as strong as the other in terms of long-term growth potentials. While some shareholders 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 Mitcham Industries.

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

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