Margin Breakdown
| Operating Margin | (23.39) | |
| EBITDA Margin | (13.11) | |
| Gross Margin | 57.54 | |
| Profit Margin | (14.42) |
Are RealNetworks (NASDAQ:RNWK) traders starting to hold back?
 | By Ellen Johnson | Macroaxis Story |
RealNetworks Invested Capital is decreasing as compared to previous years. The last year's value of Invested Capital was reported at 66.76 Million. The current Invested Capital Average is estimated to increase to about 56.6 M, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease to (22.6 M). This short post will examine RealNetworks as a possible investment alternative for your portfolios. We will provide a perspective on RealNetworks future direction.
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Reviewed by Vlad Skutelnik
About 46.0% of RealNetworks outstanding shares are owned by corporate insiders. Insiders ownership of RealNetworks refers to the amount of RealNetworks equity owned by RealNetworks officers, directors, relatives of the leadership team, or anyone who has access to private information before it's made available to the public. Check out our latest analysis of RealNetworks, including its current ownership diagnostics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as RealNetworks. Your research has to be compared to or analyzed against RealNetworks' peers to derive any actionable benefits. When done correctly, RealNetworks' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in RealNetworks.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as RealNetworks. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for RealNetworks
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of RealNetworks' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Watch out for price decline
Please consider monitoring RealNetworks on a daily basis if you are holding a position in it. RealNetworks is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as RealNetworks stock to be traded above the $1 level to remain listed. If RealNetworks stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is RealNetworks's Liquidity
RealNetworks financial leverage refers to using borrowed capital as a funding source to finance RealNetworks ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. RealNetworks 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. Financial leverage can amplify the potential profits to RealNetworks' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of RealNetworks' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between RealNetworks's total debt and its cash.
Another Outlook On RealNetworks
RealNetworks shows above-average downside volatility for the selected time horizon. We advise investors to inspect RealNetworks further and ensure that all market timing and asset allocation strategies are consistent with the estimation of RealNetworks future alpha.
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