Radiant Story

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RLGT -- USA Stock  

USD 5.25  0.04  0.76%

As many millenniums are trying to avoid industrials space, it makes sense to review Radiant Logistics a little further and try to understand its current market patterns. We will evaluate why we are still confident in anticipation of a recovery. Is the firm valuation sustainable? Here I will cover a perspective on valuation of Radiant to give you a better outlook on taking a position in this stock.
Published over three weeks ago
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Is Radiant Logistics (AMEX:RLGT) ready for a correction?
Radiant Logistics currently holds 78.92 M in liabilities with Debt to Equity (D/E) ratio of 0.6, which is about average as compared to similar companies. We provide trade recommendations to complement the recent expert consensus on Radiant Logistics. 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 Radiant Logistics 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 Radiant Logistics based exclusively on its fundamental and basic technical indicators. By analyzing Radiant Logistics'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 Radiant Logistics'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 Radiant Logistics. We calculate exposure to Radiant Logistics's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Radiant Logistics's related companies.

Radiant Logistics Investment Alerts

Radiant 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 Radiant Logistics performance across your portfolios.Please check all investment alerts for Radiant

Radiant Logistics Valuation Ratios as Compared to Competition

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

How Radiant utilizes its cash?

To perform a cash flow analysis of Radiant Logistics, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Radiant Logistics is receiving and how much cash it distributes out in a given period. The Radiant Logistics cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Radiant Logistics Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Radiant Logistics reported Net Cash Flow from Operations of 29.88 Million in 2019

Breaking down Radiant Logistics Indicators

The entity reported the previous year's revenue of 784.34 M. Net Income was 10.34 M with profit before overhead, payroll, taxes, and interest of 169.73 M.
 2015 2019 2020 (projected)
Interest Expense4.92 M1.35 K1.39 K
Gross Profit186.66 M167.99 M181.26 M

Margins Breakdown

Radiant profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Radiant Logistics itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Radiant Logistics profit margins.
1.71
Profit Margin
2.77
Operating Margin
3.53
EBITDA Margin
Operating Margin2.77
EBITDA Margin3.53
Gross Margin31.3
Profit Margin1.71


Radiant Logistics Net Income Per Employee is comparatively stable at the moment. Also, Radiant Logistics Revenue Per Employee is comparatively stable at the moment.

Radiant showing indication of lower volatility

Total risk alpha is down to 0.27. It may call for a possible volatility drop. Radiant Logistics shows above-average downside volatility for the selected time horizon. We advise investors to inspect Radiant Logistics further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Radiant Logistics future alpha.

The Bottom Line

Whereas some other entities within the integrated freight & logistics industry are still a little expensive, even after the recent corrections, Radiant Logistics may offer a potential longer-term growth to private investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor trade any shares of Radiant Logistics at this time. The Radiant Logistics risk-reward trade off is not appealing enough to do any trading. 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 Radiant Logistics.

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 Radiant Logistics. Please refer to our Terms of Use for any information regarding our disclosure principles.

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