Sea Change Intl has a beta of 1.7823. Let's try to break down what Sea Change's beta means in this case. Sea Change returns are very sensitive to returns on the market. As the market goes up or down, Sea Change is expected to follow. The beta indicator helps investors understand whether Sea Change moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Sea Change deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as
predicting future values of individual securities such as SeaChange International. 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 SeaChange International
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of SeaChange International's 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 note, it is not enough to conduct a financial or market analysis of a single entity such as SeaChange International. Your research has to be compared to or analyzed against SeaChange International's peers to derive any actionable benefits. When done correctly, SeaChange International's 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 SeaChange International.
How important is SeaChange International's Liquidity
SeaChange International
financial leverage refers to using borrowed capital as a funding source to finance SeaChange International ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. SeaChange International 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 SeaChange International's 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 SeaChange International's 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 SeaChange International's total debt and its cash.
Breaking down SeaChange International Indicators
Sea Change Intl is displaying above-average volatility over the selected time horizon. Investors should scrutinize Sea Change Intl independently to ensure intended market timing strategies are aligned with expectations about Sea Change volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sea Change's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sea Change's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Returns Breakdown
| Return on Investment | (8.18) |
| Return on Assets | (14.6) |
| Return on Equity | (21.08) |
| Return Capital | (1.81) |
| Return on Sales | (0.54) |
Another 3 percent rise for Sea Change
Current treynor ratio is at 0.49.
As of the 12th of April 2021, Sea Change has the Risk Adjusted Performance of 0.0587,
semi deviation of 7.16, and Coefficient Of Variation of 1681.0. In relation to
fundamental indicators, the
technical analysis model makes it possible for you to check existing technical drivers of Sea Change Intl, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to analyze nineteen
technical drivers for Sea Change Intl, which can be compared to its competition. Please validate
Sea Change Intl information ratio,
value at risk, and the
relationship between the
standard deviation and
treynor ratio to decide if Sea Change is priced more or less accurately, providing market reflects its prevalent price of 1.47 per share. Please also confirm Sea Change Intl
total risk alpha, which is currently at
(1.89) to double-check the company can sustain itself at a future point.
Our Final Takeaway
Whereas some other entities under the software—application industry are still a bit expensive, Sea Change may offer a potential longer-term growth to investors. The bottom line, as of the 12th of April 2021, we believe Sea Change is currently
overvalued. It actively responds to the market and projects
low probability of distress in the next two years. Our primary 30 days buy vs. sell advice on the company is
Strong Sell.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of SeaChange International. Please refer to our
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