Vuzix Story

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It looks like Apple will continue to recover much faster as its share price surged up 5.15% today to Vuzix's 17.4387%. While some millenniums may be indifferent towards technology space, we will examine how stable are Vuzix fundamentals compared to Apple. We are going to examine some of the competitive aspects of both Vuzix and Apple.
Published over a month ago
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What is our outlook on Vuzix (NASDAQ:VUZI) and Apple (NASDAQ:AAPL)?
By analyzing existing basic indicators between Vuzix and Apple, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Apple with a short position in Vuzix. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Vuzix has an asset utilization ratio of 39.26 percent. This implies that the company is making $0.39 for each dollar of assets. An increasing asset utilization means that Vuzix is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Vuzix's Liquidity

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

How Vuzix utilizes its cash?

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

Acquisition by Harned Timothy Heydenreich of 15000 shares of Vuzix subject to Rule 16b-3

Legal trades by Vuzix insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Vuzix insider trading alert for grant of common stock by Harned Timothy Heydenreich, the corporate stakeholder, on 2nd of July 2020. This event was filed by Vuzix Corp with SEC on 2020-07-02. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Details

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Vuzix revenue. Based on the latest financial disclosure, Vuzix reported 7.68 M of revenue. This is 99.81% lower than that of the Technology sector and 99.98% lower than that of the Consumer Electronics industry. The revenue for all United States stocks is 99.92% higher than that of Vuzix. As for Apple we see revenue of 273.86 B, which is much higher than that of the Consumer Electronics

AAPL
273.9 B
VUZI7.68 Million0.002763
Sector4.08 Billion1.47
AAPL273.86 Billion98.53

Are Vuzix technical ratios showing a reversion?

The mean deviation is down to 4.41 as of today. Vuzix is displaying above-average volatility over the selected time horizon. Investors should scrutinize Vuzix independently to ensure intended market timing strategies are aligned with expectations about Vuzix volatility.

Our Final Perspective on Vuzix

While few other entities under the consumer electronics industry are still a bit expensive, Vuzix may offer a potential longer-term growth to stockholders. The bottom line, as of the 22nd of August 2020, we believe that at this point, Vuzix is unstable with very low probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. Our final 30 days buy-or-sell advice on the company is Hold.

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

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