Ocean Story

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OPTT -- USA Stock  

USD 3.60  0.27  8.11%

While some of us are excited about industrials space, it makes sense to review Ocean Power in greater detail to make a better assessment of its actual value. Why are we still confident in anticipation of a complete recovery. Is Ocean Power valuation justified? I am going to cover the firm perspective on valuation to give you a better outlook on taking a position in it.
Published over three months ago
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The company currently holds 1.31 M in liabilities with Debt to Equity (D/E) ratio of 0.12, which may suggest the company is not taking enough advantage from borrowing. We provide trade recommendations to complement the recent expert consensus on Ocean Power Technolo. Our dynamic recommendation engine exercises a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
We determine the current worth of Ocean Power 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 Ocean Power Technolo based exclusively on its fundamental and basic technical indicators. By analyzing Ocean Power'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 Ocean Power'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 Ocean Power. We calculate exposure to Ocean Power's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Ocean Power's related companies.

Ocean Power Technolo Investment Alerts

Ocean 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 Ocean Power performance across your portfolios.Please check all investment alerts for Ocean

Ocean Power Valuation Ratios as Compared to Competition

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

How Ocean utilizes its cash?

To perform a cash flow analysis of Ocean Power, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Ocean Power is receiving and how much cash it distributes out in a given period. The Ocean Power cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Breaking it down a bit more

The newest price gain of Ocean Power Technolo may encourage private investors to take a closer look at the company as it is trading at a share price of 0.91 on slow start in trading volume. The company executives may have good odds in positioning the company resources to exploit market volatility in October. The stock standard deviation of daily returns for 30 days investing horizon is currently 8.47. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Ocean Power partners.

Margins Breakdown

Ocean profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Ocean Power itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Ocean Power profit margins.
EBITDA Margin(7.07)
Gross Margin(0.0669)
Profit Margin(6.64)

Ocean Power Earnings Before Interest Taxes and Depreciation Amortization USD is comparatively stable at the moment. Ocean Power Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. Additionally, Ocean Power Average Equity is comparatively stable at the moment. Ocean Power Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The previous year's value of Ocean Power Earnings Before Interest Taxes and Depreciation Amortization USD was -11,885,684. Ocean Power Earnings Before Interest Taxes and Depreciation Amortization EBITDA is comparatively stable at the moment. Additionally, Ocean Power Average Equity is decreasing over the last 8 years. The newest value of Ocean Power Average Equity is 16,089,083.

Our perspective of the newest Ocean Power drop

The mean deviation is down to 6.5 as of today. As of the 14th of September 2020, Ocean Power holds the Risk Adjusted Performance of 0.1512, coefficient of variation of 787.02, and Semi Deviation of 5.91. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Ocean Power, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to interpolate nineteen technical drivers for Ocean Power Technolo, which can be compared to its competitors. Please check Ocean Power Technolo semi deviation, jensen alpha, as well as the relationship between the Jensen Alpha and semi variance to decide if Ocean Power Technolo is priced some-what accurately, providing market reflects its current price of 0.91 per share. Given that Ocean Power is a hitting penny stock territory we advise to closely look at its total risk alpha.

Our Final Perspective on Ocean Power

Whereas many other companies in the electrical equipment & parts industry are either recovering or due for a correction, Ocean Power may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 14th of September 2020, we believe that at this point, Ocean Power is out of control with very high chance of distress within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our current 30 days 'Buy-vs-Sell' recommendation on the firm is Strong Sell.

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 Ocean Power. Please refer to our Terms of Use for any information regarding our disclosure principles.

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