Majesco Story

<div class='circular--portrait' style='background:#4E8BFC;color: #ffffff;font-size:3em;'>MJC</div>
MJCO -- USA Stock  

USD 16.00  0.03  0.19%

While many traders are getting carried away by overanalyzing technology space, it is reasonable to outline Majesco. Why are we still confident in anticipation of a complete recovery. Is the firm valuation justified? I am going to cover Majesco perspective on valuation to give you a better outlook on taking a position in it.
Published over a month ago
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Is Majesco (NASDAQ:MJCO) ready for a correction?
Majesco currently holds 3.1 M in liabilities with Debt to Equity (D/E) ratio of 0.03, which may suggest Majesco is not taking enough advantage from borrowing. This firm has a current ratio of 2.03, suggesting that it is liquid enough and is able to pay its financial obligations when due. Our investment recommendation tool can cross-verify current analyst consensus on Majesco and to analyze the entity potential to grow in the current economic cycle.
We determine the current worth of Majesco 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 Majesco based exclusively on its fundamental and basic technical indicators. By analyzing Majesco'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 Majesco'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 Majesco. We calculate exposure to Majesco's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Majesco's related companies.

Majesco Investment Alerts

Majesco 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 Majesco performance across your portfolios.Please check all investment alerts for Majesco

Majesco Valuation Ratios as Compared to Competition

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

How Majesco utilizes its cash?

To perform a cash flow analysis of Majesco, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Majesco is receiving and how much cash it distributes out in a given period. The Majesco cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Majesco Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 18.43 Million

Disposition of 50000 shares by Miller James Jeffrey of Majesco subject to Rule 16b-3

Legal trades by Majesco 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:
Majesco insider trading alert for disposition of restricted stock units by Miller James Jeffrey, Chief Revenue Officer, on 21st of September 2020. This event was filed by Majesco with SEC on 2020-09-21. Statement of changes in beneficial ownership - SEC Form 4 [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.

Another Deeper Perspective

The company reported the previous year's revenue of 146.44 M. Net Income was 9.68 M with profit before overhead, payroll, taxes, and interest of 71.64 M.

Margins Breakdown

Majesco profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Majesco itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Majesco profit margins.
Operating Margin9.09
EBITDA Margin0.16
Gross Margin0.53
Profit Margin0.0712


Majesco Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The latest value of Majesco Earnings Before Interest Taxes and Depreciation Amortization USD is 23,603,053. Majesco Average Assets is increasing over the last 7 years. The previous year's value of Majesco Average Assets was 138,460,226. Additionally, Majesco Net Income Per Employee is increasing over the last 7 years. Majesco Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. Majesco Average Assets is quite stable at the moment. Additionally, Majesco Net Income Per Employee is increasing over the last 7 years. The latest value of Majesco Net Income Per Employee is 4,334.

Majesco has 97 percent likelihood to slide below $12.79 in September

The semi deviation is down to 2.22 as of today. Majesco is displaying above-average volatility over the selected time horizon. Investors should scrutinize Majesco independently to ensure intended market timing strategies are aligned with expectations about Majesco volatility.

Our Final Take On Majesco

Whereas few other entities in the software?application industry are either recovering or due for a correction, Majesco may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Majesco valuation and our trade advice on Majesco is due to the recent market swings and your selection of investing horizon. 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 Majesco.

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 Achuva Shats do not own shares of Majesco. Please refer to our Terms of Use for any information regarding our disclosure principles.

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