Safeguard Story

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SFE -- USA Stock  

USD 5.26  0.05  0.96%

As many millenniums are trying to avoid financial services space, it makes sense to digest Safeguard Scientifics Inc a little further and try to understand its current market patterns. We are going to cover the possibilities of making Safeguard Scientifics into your portfolio. Is the firm valuation justified? Here we go over Safeguard Scientifics New perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a month ago
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Breaking down Safeguard Scientifics valuation
Safeguard Scientifics has 2.68 M in debt with debt to equity (D/E) ratio of 0.03, which may show that Safeguard Scientifics is not taking advantage of profits from borrowing. This firm has a current ratio of 6.64, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Safeguard Scientifics has an asset utilization ratio of 13.56 percent. This indicates that the company is making $0.14 for each dollar of assets. An increasing asset utilization means that Safeguard Scientifics Inc is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Safeguard Scientifics Inc 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 Safeguard Scientifics New based exclusively on its fundamental and basic technical indicators. By analyzing Safeguard Scientifics'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 Safeguard Scientifics'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 Safeguard Scientifics. We calculate exposure to Safeguard Scientifics's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Safeguard Scientifics's related companies.

Safeguard Scientifics New Investment Alerts

Safeguard 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 Safeguard Scientifics Inc performance across your portfolios.Please check all investment alerts for Safeguard

Safeguard Scientifics Valuation Ratios as Compared to Competition

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

How Safeguard utilizes its cash?

To perform a cash flow analysis of Safeguard Scientifics, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Safeguard Scientifics is receiving and how much cash it distributes out in a given period. The Safeguard Scientifics cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Safeguard Scientifics Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (19.97 Million)

What is driving Safeguard Scientifics Investor Appetite?

The latest bullish price patterns experienced by current Safeguard Scientifics shareholders created some momentum for shareholders as it was traded today as low as 6.22 and as high as 6.44 per share. The company directors and management have been very successful in rebalancing the company assets at opportune times to take advantage of market volatility in July. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.73. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Safeguard Scientifics New partners.

Safeguard Scientifics Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years. The latest value of Safeguard Scientifics Earnings Before Interest Taxes and Depreciation Amortization EBITDA is 3,324,237. Moreover, Safeguard Scientifics Earnings Before Interest Taxes and Depreciation Amortization USD is rather stable at the moment.

Safeguard Scientifics is projected to stay a bit over $6.34 in September

Semi variance is down to 18.16. It may indicate a possible volatility dip. Safeguard Scientifics Inc exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Safeguard Scientifics Inc individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Safeguard Scientifics future systematic risk.

Our Final Take On Safeguard Scientifics

Although other entities in the asset management industry are either recovering or due for a correction, Safeguard may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 11th of August 2020, our primary 30 days 'Buy-vs-Sell' recommendation on the firm is Strong Sell. We believe Safeguard Scientifics is overvalued with very low probability of bankruptcy for the next two years.

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 Achuva Shats do not own shares of Safeguard Scientifics Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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