Cemtrex, Inc. [NASDAQ: CETX] shares went higher by 33.93% from its previous closing of $2.24, now trading at the price of $3.00, also adding 0.76 points. Is CETX stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 2.38 million contracts. Compared to the average trading volume of CETX shares, the company saw a far better performance. Moreover, the stock has a 10.83M float and a +56.25% run over in the last seven days. CETX share price has been hovering between $20.24 and $1.40 lately, and is definitely worthy of attention.
Cemtrex, Inc. [NASDAQ:CETX]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For Cemtrex, Inc. [CETX] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in September. On average, stock market experts give CETX an Outperform rating. Its stock price has been found in the range of 1.40 to 20.24. This is compared to its latest closing price of $2.24.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Cemtrex, Inc. [CETX] is sitting at 2.00. This is compared to 1 month ago, when its average rating was 2.00.
For the quarter ending in Mar-19 Cemtrex, Inc. [CETX] generated $0.02 billion in sales. That’s 3.09% higher than the average estimate of $0.02 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Tue 13 Aug (In 60 Days).
Fundamental Analysis of Cemtrex, Inc. [CETX]
Now let’s turn to look at profitability: with a current Operating Margin for Cemtrex, Inc. [CETX] sitting at -12.12 and its Gross Margin at +34.90, this company’s Net Margin is now -21.10%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is -19.92, and its Return on Invested Capital has reached -15.30%. Its Return on Equity is -24.88, and its Return on Assets is -13.44. These metrics suggest that this Cemtrex, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Cemtrex, Inc. [CETX] has generated a Total Debt to Total Equity ratio of 53.88. Similarly, its Total Debt to Total Capital is 35.01, while its Total Debt to Total Assets stands at 28.23. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 22.95, and its Long-Term Debt to Total Capital is 14.91. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is -3.05. The Enterprise Value to Sales for this firm is now 0.26, and its Total Debt to Enterprise Value stands at 0.58. Cemtrex, Inc. [CETX] has a Price to Book Ratio of 0.53.
Shifting the focus to workforce efficiency, Cemtrex, Inc. [CETX] earns $172,955 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.70 and its Total Asset Turnover is 1.31. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.89 and its Current Ratio is 1.46. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Cemtrex, Inc. [CETX] has 17.70M shares outstanding, amounting to a total market cap of $53.10M. Its stock price has been found in the range of 1.40 to 20.24. At its current price, it has moved down by -85.18% from its 52-week high, and it has moved up 114.41% from its 52-week low.
This stock’s Beta value is currently 0.78, which indicates that it is 38.46% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 64.38. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Cemtrex, Inc. [CETX] a Reliable Buy?
Shares of Cemtrex, Inc. [CETX], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.