Realnetworks Story

RNWK -- USA Stock

USD 4.37 0.05 1.13%

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.

Published over a month ago

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Are RealNetworks (NASDAQ:RNWK) traders starting to hold back?

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.

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, frequently view the market will even out over time. This tendency of Realnetworks' stock 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. Please use the tools below to analyze the current value of Realnetworks in the context of predictive analytics.

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 towards taking a position in Realnetworks.

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. Please check the breakdown between Realnetworks's total debt and its cash.

How Realnetworks utilizes its cash?

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

Realnetworks Net Cash Flow from Operations is increasing as compared to previous years. The last year's value of Net Cash Flow from Operations was reported at (22.83 Million)

Breaking it down a bit more

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.

Margin Breakdown

	Operating Margin	(23.39)
	EBITDA Margin	(13.11)
	Gross Margin	57.54
	Profit Margin	(14.42)

Another 3 percent surge for RealNetworks

Recent skewness is at 0.78. As of the 23rd of January, RealNetworks holds the Coefficient Of Variation of 818.78, semi deviation of 3.86, and Risk Adjusted Performance of 0.1262. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of RealNetworks, 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 interpolate nineteen technical drivers for RealNetworks, which can be compared to its competitors. Please check RealNetworks variance, as well as the relationship between the value at risk and skewness to decide if RealNetworks is priced some-what accurately, providing market reflects its current price of 2.14 per share. Please also confirm RealNetworks total risk alpha, which is currently at (0.31) to check out the company can sustain itself at a future point.

The Bottom Line

Although other entities within the electronic gaming & multimedia industry are still a little expensive, even after the recent corrections, RealNetworks may offer a potential longer-term growth to traders. The inconsistency in the assessment between current RealNetworks valuation and our trade advice on RealNetworks 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 RealNetworks.

About Contributor

Ellen Johnson is a Member of Macroaxs Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management. View Profile

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

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Realnetworks Story

USD 4.37 0.05 1.13%

Predictive Modules for Realnetworks

How important is Realnetworks's Liquidity

How Realnetworks utilizes its cash?

Breaking it down a bit more

Margin Breakdown

Another 3 percent surge for RealNetworks

The Bottom Line

About Contributor

Would you like to provide feedback on the content of this article?

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