Safeguard Story

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SFE -- USA Stock  

USD 6.60  0.17  2.64%

Safeguard Scientifics New is scheduled to announce its earnings today. Safeguard Scientifics Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 3.08 Million. The current year Average Equity is expected to grow to about 211 M, whereas Earnings before Tax are forecasted to decline to (73.9 M). Although many aggressive traders are getting into financial services space, Safeguard Scientifics Inc may or may not be your first choice. Let's discuss the possibilities of Safeguard Scientifics maintaining its debt level in November.
Published over a month ago
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How much will Safeguard Scientifics owe in November?
The company has 2.58 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. Safeguard Scientifics New has a current ratio of 6.7, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. About 72.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.67. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Safeguard Scientifics New recorded a loss per share of 1.41. The entity last dividend was issued on the 20th of December 2019. The firm had 1:6 split on the 27th of August 2009.
Safeguard Scientifics financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Safeguard Scientifics, including all of Safeguard Scientifics's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Safeguard Scientifics assets, the company is considered highly leveraged. Understanding the composition and structure of overall Safeguard Scientifics debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Safeguard Total Liabilities

Safeguard Scientifics New liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Safeguard Scientifics New has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Safeguard Scientifics balance sheet include debt obligations and money owed to different Safeguard Scientifics vendors, workers, and loan providers. Below is the chart of Safeguard short long-term liabilities accounts currently reported on its balance sheet.
You can use Safeguard Scientifics Inc financial leverage analysis tool to get a better grip on understanding its financial position

How important is Safeguard Scientifics's Liquidity

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

What is driving Safeguard Scientifics Investor Appetite?

The entity reported the last year's revenue of 34.84 M. Reported Net Loss for the year was (29.11 M) with profit before taxes, overhead, and interest of 57.71 M.

Liabilities Breakdown

Total Liabilities5.99 Million
Current Liabilities2.49 Million
Long-Term Liabilities64.82 Million
Tax Liabilities879,123

Will Safeguard price dip impact its balance sheet?

Latest semi deviation is at 2.55. Safeguard Scientifics Inc currently demonstrates below-verage downside deviation. It has Information Ratio of -0.01 and Jensen Alpha of 0.08. However, we do advice investors to further question Safeguard Scientifics Inc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Take On Safeguard Scientifics

When is the right time to buy or sell Safeguard Scientifics Inc? Buying stocks such as Safeguard Scientifics isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. On the whole, as of the 25th of October 2020, our ongoing 30 days advice on the firm is Sell. We believe Safeguard Scientifics is overvalued with very low chance 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 Raphi Shpitalnik 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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