Is SATS LTD well-positioned for August economic uncertainties?
 | By Ellen Johnson | Macroaxis Story |
In this story, I am going to address all SATS shareholders. We will look into why despite regular market tumult, the longer-term fundamental drivers of the firm are still sound. Is the firm current valuation justified for 2020? Here i will cover my perspective on SATS LTD valuation to give investors a better outlook on taking a position in the stock. What is SATS probability of distress for August 2020? What is SATS Target Price Odds to finish over Current Price? Based on a normal probability distribution, the odds of SATS to move above the current price in 30 days from now is about 56.11%. The SATS LTD probability density function shows the probability of SATS OTC Stock to fall within a particular range of prices over 30 days. Assuming the 30 trading days horizon, SATS has a beta of 0.0765 . This usually implies as returns on the market go up, SATS average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding SATS LTD will be expected to be much smaller as well. Additionally, the company has an alpha of 0.088, implying that it can generate a 0.088 percent excess return over DOW after adjusting for the inherited market risk (beta).
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Reviewed by Rifka Kats
SATS has accumulated 71.03 M in total debt with debt to equity ratio (D/E) of 0.17, which may suggest the entity is not taking enough advantage from borrowing. This firm has accumulated 71.03 M in total debt with debt to equity ratio (D/E) of 0.17, which may suggest the stock is not taking enough advantage from borrowing. The company has a current ratio of 1.47, which is within standard range for the sector. SATS is OVERVALUED at 1.77 per share with modest projections ahead. The company has Profit Margin (PM) of 11.35 %, which can be a sign that it executes well on its competitive strategies and has a good control over its expenditures. This is very large. We determine the current worth of SATS 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 SATS based exclusively on its fundamental and basic technical indicators. By analyzing SATS'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 SATS'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 SATS. We calculate exposure to SATS's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to SATS's related companies.
SATS Investment Alerts
SATS 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 SATS performance across your portfolios.Please check all investment alerts for SATSSATS Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare SATS value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across SATS competition to find correlations between indicators driving the intrinsic value of SATS.Another Deeper Perspective
SATS maintains gross profit of 597.21 m. SATS LTD exercises its assets roughly 6.07 %, attaining $0.0607 for each dollar of assets held by the entity. A flourishing asset utilization indicates the company is being more competent with each dollar of assets it has. In other words asset utilization of SATS shows how competent it operates for each dollar spent on its assets. SATS LTD has a beta of 0.0765. Let's try to break down what SATS's beta means in this case. As returns on the market increase, SATS returns are expected to increase less than the market. However, during the bear market, the loss on holding SATS will be expected to be smaller as well. The beta indicator helps investors understand whether SATS 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 SATS deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The modest gains experienced by current holders of SATS LTD has created some momentum for investors as it was traded today as low as 2.1 and as high as 2.1 per share. The company executives have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in June. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.95. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from SATS LTD partners.
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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 SATS. Please refer to our Terms of Use for any information regarding our disclosure principles.