They say change is the only constant, and for Arq Inc. (ARQ), this might be a reality worth considering. Once a promising player in the industrials sector, Arq is now facing challenges that savvy investors can't ignore. With a razor-thin operating margin of 0.03% and a return on equity dipping into negative territory at -0.01, the company's financial health raises eyebrows. The stock's volatility, reflected in a high beta of 3.335, suggests a bumpy ride ahead. While the company boasts retained earnings of $66.43M, its total debt of $34.36M and net interest income loss of 2.2M are concerning. As Arq's stock flirts with its 52-week low of $3.34, some investors are eyeing alternatives like Asure Software (ASUR), which might offer a more stable investment landscape. While some millennials might overlook the chemicals sector, let's take a closer look at Arq Inc.'s fundamentals and see how they stack up against Asure Software. We'll explore the competitive strengths of both companies to understand their market positions better.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Arq. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Arq, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How does Arq utilize its cash?
At this time, Arq's
Depreciation is relatively stable compared to the past year. . To perform a cash flow analysis of Arq, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Arq is receiving and how much cash it distributes out in a given period. The Arq cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Arq Gross Profit
Arq Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Arq 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 Arq Gross Profit growth over the last 10 years. Please check Arq's
gross profit and other
fundamental indicators for more details.
A Deeper Perspective
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 products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check Arq revenue. Based on the latest financial disclosure, Arq Inc reported 108.96
M of revenue.
This is 96.89% lower than that of the Chemicals sector and 53.42% lower than that of the
Materials industry. The revenue for all United States stocks is 98.85% higher than that of Arq. As for Asure Software we see revenue of 119.79
M, which is 48.79% lower than that of the Materials
| Arq | 108.96 Million |
| Sector | 233.92 Million |
| Asure | 119.79 Million |
All that glitters is not gold, and Arq Inc. (ARQ) might be a case in point for investors looking for sustainable growth. Despite its market capitalization of $223.72 million, the company faces challenges with a net income loss of 5.1 million and a probability of bankruptcy at 40.95%. These figures suggest a need for caution, especially when compared to Asure Software (ASUR), which may offer a more stable investment opportunity. With Arq's high beta of 3.34 indicating significant volatility, savvy investors might consider reallocating their portfolios towards companies with more predictable performance metrics..
Momentum Analysis of Arq suggests possible reversal in July
Arq Inc's recent mean deviation of 3.41 suggests a potential shift in momentum, possibly indicating a trend reversal as we near July. This metric, which reflects the average difference between each data point and the mean, points to increased volatility and investor uncertainty. Such fluctuations often signal an impending change in trend, making it crucial for investors to stay alert. As the market processes this information, those holding Arq positions should be particularly attentive, as this could be a turning point for the stock.
As of June 9th, Arq's downside deviation stands at 4.17, with a risk-adjusted performance of 0.0816. Technical analysis of Arq Inc can help investors utilize historical prices and volume patterns to predict the stock's future direction.As we look ahead to 2025, Arq Inc presents a compelling yet challenging opportunity for investors. With a possible upside price of
10.04 and a strong buy consensus from analysts, there's a clear indication of potential growth. However, the journey won't be without its hurdles, as the valuation real value stands at 6.77, suggesting that the market may have already priced in some of the anticipated gains. For those willing to embrace the risks, Arq Inc could offer significant rewards, but it's crucial to stay informed and agile as the company's story unfolds..
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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 Arq Inc. Please refer to our
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