PRGX Global Story

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PRGX -- USA Stock  

USD 4.75  0.13  2.66%

PRGX Global is scheduled to announce its earnings today. The next earnings report is expected on the 4th of November 2020. PRGX Global Long Term Debt to Equity is fairly stable at the moment as compared to the past year. PRGX Global reported Long Term Debt to Equity of 0.69 in 2019. Calculated Tax Rate is likely to grow to 40.09 in 2020, whereas Net Income Per Employee is likely to drop (9.4 K) in 2020. While many traders are getting carried away by overanalyzing industrials space, it is reasonable to break down PRGX Global as an investment alternative. I will address a few possible reasons investors do not currently respect this stock.
Published over two months ago
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How much will PRGX Global owe in August?
PRGX Global currently holds 54.77 M in liabilities with Debt to Equity (D/E) ratio of 1.14, which is about average as compared to similar companies. The entity has a current ratio of 2.78, suggesting that it is liquid enough and is able to pay its financial obligations when due. The company has Profit Margin (PM) of (7.87) %, 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 (0.11) %, which suggests for every $100 dollars of sales, it generated a net operating loss of 0.0.
PRGX Global financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of PRGX Global, including all of PRGX Global'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 PRGX Global assets, the company is considered highly leveraged. Understanding the composition and structure of overall PRGX Global 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 PRGX Global Total Debt

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

How important is PRGX Global's Liquidity

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

Acquisition by William Kimble of 30769 shares of PRGX Global subject to Rule 16b-3

Legal trades by PRGX Global 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:
PRGX Global insider trading alert for grant of restricted stock unit by William Kimble, the corporate stakeholder, on 19th of June 2020. This event was filed by Prgx Global Inc with SEC on 2020-06-19. 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.

Breaking down PRGX Global Indicators

The firm reported the previous year's revenue of 167.79 M. Net Loss for the year was (13.97 M) with profit before overhead, payroll, taxes, and interest of 69.58 M.

Asset Breakdown

38.5 M
Assets Non Current
21.8 M
72.3 M
Current Assets
Total Assets132.98 Million
Current Assets72.29 Million
Assets Non Current38.49 Million
Goodwill21.83 Million
Tax Assets404,830

Another 3 percent rise for PRGX Global

Current expected short fall is at -4.39. As of the 28th of July, PRGX Global holds the semi deviation of 3.88, and Risk Adjusted Performance of 0.238. Concerning fundamental indicators, the technical analysis model allows you to check practical technical drivers of PRGX Global, 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 analyze nineteen technical drivers for PRGX Global, which can be compared to its competitors. Please check PRGX Global downside deviation, treynor ratio, as well as the relationship between the Treynor Ratio and expected short fall to decide if PRGX Global is priced more or less accurately, providing market reflects its current price of 5.06 per share. Given that PRGX Global has jensen alpha of 0.6304, we recommend you to check out PRGX Global's recent market performance to make sure the company can sustain itself at some point in the future.

Our Final Takeaway

While many other companies under the specialty business services industry are still a bit expensive, PRGX Global may offer a potential longer-term growth to investors. To summarize, as of the 28th of July 2020, we believe PRGX Global is currently undervalued. It follows the market closely and projects very high chance of financial distress in the next two years. Our primary 30 days buy-or-sell advice on the company is Strong Hold.

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 PRGX Global. Please refer to our Terms of Use for any information regarding our disclosure principles.

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