RigNet Story

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RNET -- USA Stock  

USD 4.23  0.20  4.96%

RigNet Receivables Turnover is comparatively stable at the moment as compared to the past year. RigNet reported Receivables Turnover of 3.61 in 2019. Accounts Payable Turnover is likely to gain to 10.16 in 2020, whereas Earnings before Tax are likely to drop (13.5 M) in 2020. While many traders are getting carried away by overanalyzing energy space, it is reasonable to review RigNet Inc. We will cover the possibilities of making RigNet into a steady grower in September. Here I will also review some technical and fundamental indicators that RigNet investors should consider in September.
Published over a month ago
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RigNet (NASDAQ:RNET) continues to gain
This firm is overvalued at 4.78 per share with modest projections ahead. RigNet holds a performance score of 14 on a scale of zero to a hundred. The company holds a Beta of 3.5244, which implies a somewhat significant risk relative to the market. Let's try to break down what RigNet's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, RigNet will likely underperform. Although it is essential to pay attention to RigNet Inc current trending patterns, it is also good to be reasonable about what you can do with equity existing price patterns. Our philosophy towards forecasting future potential of any stock is to look not only at its past charts but also at the business as a whole, including all available fundamental and technical indicators. To evaluate if RigNet Inc expected return of 3.84 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use RigNet downside deviation, jensen alpha, as well as the relationship between the Jensen Alpha and downside variance to analyze future returns on RigNet.

How important is RigNet's Liquidity

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

How RigNet utilizes its cash?

To perform a cash flow analysis of RigNet, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash RigNet is receiving and how much cash it distributes out in a given period. The RigNet cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. RigNet Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. RigNet reported Net Cash Flow from Operations of (20.28 Million) in 2019

What is driving RigNet Investor Appetite?

RigNet owns a total of twenty million five hundred fifty thousand outstanding shares. The majority of RigNet Inc outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in RigNet Inc to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in RigNet. Please pay attention to any change in the institutional holdings of RigNet Inc as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.
 2014 2015 2019 2020 (projected)
Interest Expense2.19 M2.05 M2.36 M2.59 M
Gross Profit141.97 M108.02 M97.22 M84.85 M

Ownership Breakdown

Retail Investors
8.62%
Institutions
88.66%
Retail Investors8.62
Insiders2.72
Institutions88.66

Will RigNet newest gain continue?

Newest variance is at 354.88. RigNet Inc is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to make sure related market timing strategies are aligned with all the expectations about RigNet implied risk.

Whereas some companies under the oil & gas equipment & services industry are still a bit expensive, RigNet may offer a potential longer-term growth to private investors. All things considered, as of the 29th of August 2020, we see that RigNet hyperactively responds to market trends. The firm is overvalued with below average odds of financial distress within the next 24 months. Our actual 30 days buy vs. sell advice on the firm is 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 Raphi Shpitalnik do not own shares of RigNet Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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