Pioneer Story

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PPSI -- USA Stock  

USD 9.00  1.74  23.97%

The stock goes through an active upward rally. While some of us are becoming more enthusiastic about industrials space, let's concentrate on Pioneer Power Solutions in greater detail to make a better estimate of its debt utilization. Let's examine the possibilities of Pioneer Power maintaining its debt level in January.
Published over a month ago
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Will Pioneer Power (NASDAQ:PPSI) debt increase in January
Pioneer Power Solutions currently holds 2.78 M in liabilities with Debt to Equity (D/E) ratio of 0.19, which may suggest the firm is not taking enough advantage from borrowing. The entity has a current ratio of 2.25, suggesting that it is liquid enough and is able to pay its financial obligations when due. The company has Profit Margin (PM) of (59.2) %, 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. Similarly, it shows Operating Margin (OM) of (25.78) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.26.
Pioneer Power financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Pioneer Power, including all of Pioneer Power'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 Pioneer Power assets, the company is considered highly leveraged. Understanding the composition and structure of overall Pioneer Power 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.

How important is Pioneer Power's Liquidity

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

How Pioneer utilizes its cash?

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

Pioneer Power exotic insider transaction detected

Legal trades by Pioneer Power 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:
Pioneer insider trading alert for general transaction of common stock by Nathan Mazurek, Chief Executive Officer, on 25th of August 2020. This event was filed by Pioneer Power Solutions I with SEC on 2020-08-25. 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.

What is driving Pioneer Power Investor Appetite?

The current price rise of Pioneer Power Solutions may encourage stockholders to take a closer look at the company as it is trading at a share price of 3.56 on 449,300 in trading volume. The company management teams may have good odds in positioning the company resources to exploit market volatility in January. The stock standard deviation of daily returns for 30 days investing horizon is currently 28.85. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Pioneer Power partners.

Pioneer Power price drop is confusing

Current standard deviation is at 28.44. Pioneer Power Solutions is displaying above-average volatility over the selected time horizon. Investors should scrutinize Pioneer Power Solutions independently to ensure intended market timing strategies are aligned with expectations about Pioneer Power volatility.

Our Conclusion on Pioneer Power

While some firms in the electrical equipment & parts industry are either recovering or due for a correction, Pioneer may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Pioneer valuation and our trade advice on Pioneer Power 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 Pioneer Power.

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

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