WidePoint C Stock presents an intriguing opportunity for investors considering its valuation metrics. With a Price to Sales ratio of just 0.38X, the stock appears undervalued compared to its peers in the Information Technology Services sector. Despite an operating income loss of
1.9M, the company's robust cash flow from operations, amounting to
1.68M, suggests a potential for financial stability and growth. This combination of low valuation and positive cash flow could signal a breakout opportunity for those willing to take a calculated risk.
Key Arguments
Widepoint C carries $4.94 million in debt, with a debt-to-equity ratio of 0.21. This low ratio might indicate that the company isn't leveraging borrowing to boost profits. The asset utilization ratio, which measures revenue generated per dollar of assets, stands at an impressive 199.18%. This means Widepoint C earns $1.99 for every dollar of assets it holds. Such a high ratio suggests the company is efficiently using its assets to drive revenue in its daily operations.
We determine the current worth of Widepoint C 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 Widepoint C based exclusively on its
fundamental and basic
technical indicators. By analyzing Widepoint'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
Widepoint'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 Widepoint. We calculate exposure to Widepoint's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Widepoint's related companies.
Widepoint C Investment Alerts
Widepoint 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 Widepoint C performance across your portfolios.Please check all
investment alerts for Widepoint
Widepoint Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Widepoint value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Widepoint competition to find
correlations between indicators driving the intrinsic value of Widepoint.
Widepoint Gross Profit
Widepoint Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Widepoint previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Widepoint Gross Profit growth over the last 10 years. Please check Widepoint's
gross profit and other
fundamental indicators for more details.
Details
Widepoint C reported the last year's revenue of 142.57
M. Reported Net Loss for the year was (1.93
M) with profit before taxes, overhead, and interest of 19
M.
Margins Breakdown
Widepoint profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Widepoint itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Widepoint profit margins.
| Pretax Profit Margin | (0.0143) |
| Operating Profit Margin | (0.0138) |
| Net Profit Margin | (0.0142) |
| Gross Profit Margin | 0.13 |
Widepoint Enterprise Value is fairly stable at the moment.
Widepoint Enterprise Value is decreasing over the last 8 years. They say, "Fortune favors the bold," and for those eyeing WidePoint C stock, this might be the moment to consider a strategic move. With a Price to Sales ratio of just 0.38X, the stock appears undervalued compared to its peers, suggesting potential for growth. However, investors should be cautious of the company's current operating challenges, as evidenced by an operating margin of 0.01 and a net income loss of 1.9 million. The company's debt to equity ratio of 0.21% indicates a relatively low level of debt, which could provide some financial stability. As WidePoint navigates its financial landscape, the stock's beta of 1.81 suggests it could be more volatile than the market, offering both risk and opportunity for those willing to take the leap..
Widepoint implied volatility may change after the rise
Widepoint's stock is currently showing a mean deviation of 3.58, indicating a significant change in its trading behavior. This suggests the stock's price is diverging from its average, potentially pointing to increased volatility. Investors should monitor this closely, as shifts in implied volatility can affect option pricing and market sentiment. As the stock navigates these changes, it could offer both opportunities and risks for traders aiming to profit from short-term movements. Widepoint C is experiencing above-average downside volatility over the selected period. Understanding these volatility trends can help investors better time their market entries and exits. High volatility, especially in bear markets, can directly affect Widepoint's stock price, prompting investors to adjust their portfolios as prices decline.
Our Final Take On Widepoint
While some other entities within the information technology services industry are still a little expensive, even after the recent corrections, Widepoint may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor exit any shares of Widepoint at this time. The Widepoint C risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Widepoint.
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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 Aina Ster do not own shares of Widepoint C. Please refer to our
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