Pendragon Story

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Pendragon Plc is scheduled to announce its earnings tomorrow. While some of us are becoming more enthusiastic about pendragon plc space, let's digest Pendragon Plc in greater detail to make a better estimate of its debt utilization. Here we also measure the ability of Pendragon Plc to meet its long-term debt obligations, such as interest payments on debt, the final principal payment on the debt, and any other fixed obligations like lease payments.
Published over three weeks ago
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Is Pendragon Plc (OTC:PDGNF) having difficulty to pay out its debt?
This firm has accumulated 249.89 M in total debt with debt to equity ratio (D/E) of 3.65, implying Pendragon Plc greatly relies on financing operations through barrowing. The company has a current ratio of 0.86, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. The company has Profit Margin (PM) of (0.97) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average.

How important is Pendragon Plc's Liquidity

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

How Pendragon utilizes its cash?

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

A Deeper Perspective

Pendragon Plc reported the revenue of 6.68 B. Net Income was 75.08 M with profit before overhead, payroll, taxes, and interest of 416 M.

Will Pendragon recoup before January?

Latest variance is at 2.1. Pendragon Plc exhibits very low volatility with skewness of -8.12 and kurtosis of 66.0. However, we advise investors to further study Pendragon Plc technical indicators to make sure all market info is available and is reliable. Pendragon Plc is a potential penny stock. Although Pendragon Plc may be in fact a good instrument to invest, many penny otc stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Pendragon Plc. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Final Perspective on Pendragon Plc

Although some firms in its industry are either recovering or due for a correction, Pendragon Plc may not be performing as strong as the other in terms of long-term growth potentials. With a less-than optimistic outlook for your 30 days horizon, it may be a good time to drop some or all of your Pendragon Plc holdings as it seems the potential growth was already fully factored into the current price. 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 Pendragon Plc.

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 Ellen Johnson do not own shares of Pendragon Plc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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