Returns Breakdown
0.16
Return On Assets
0.0964
Return On Capital Employed
| Return On Tangible Assets | 0.2 | |
| Return On Capital Employed | 0.0964 | |
| Return On Assets | 0.16 | |
| Return On Equity | (18.65) |
Should you continue to rely on Inspired Entertainment (USA Stocks:INSE) management?
 | By Vlad Skutelnik | Macroaxis Story |
In the stock market, patience often rewards those who wait. Inspired Entertainment, trading under NASDAQ: INSE, is currently navigating a challenging phase, with its shares hovering around a day typical price of $7.48. This presents a potential opportunity for strategic investors. Despite the recent dip, the company's EPS estimate for the next year stands at 0.71, indicating a promising recovery trajectory. While the current quarter's EPS is projected at a loss of 0.12, the broader outlook remains optimistic, with analysts setting a lowest estimated target price of 11.65. As the gambling industry continues to evolve, Inspired Entertainment's current valuation might just be the entry point savvy investors are looking for. Currently, Inspired Entertainment's operating cash flow per share is anticipated to see a slight dip, following trends from recent years. Meanwhile, the average payables for this year are projected to rise to approximately $19.4 million, while the enterprise value is expected to drop to around $325.3 million. This analysis aims to evaluate Inspired Entertainment's potential as we approach June. We'll explore whether the stock is fairly valued as we head into this period.
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Reviewed by Raphi Shpitalnik
Considering the current market dynamics, Inspired Entertainment (NASDAQ: INSE) is showing a potential for further decline, which might just be the strategic entry point savvy investors are looking for in June. With the stock's quote at 7.47 and a Wall Street target price of 12.8, there's a notable potential upside of 5.5. Additionally, the company's EPS estimate for the current year stands at 0.51, suggesting a positive earnings outlook despite recent volatility.
Important Takeaways
More than 85% of Inspired Entertainment's shares are held by institutional investors. This means that mutual funds, pension funds, insurance companies, and other large financial entities own a significant portion of the company's equity. These institutions manage investments on behalf of others, indicating a strong level of confidence in Inspired Entertainment's potential. For a deeper dive into the company's ownership structure and other insights, take a look at our latest analysis of Inspired Entertainment.There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Inspired Entertainment. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Inspired Entertainment
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Inspired Entertainment's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Inspired Entertainment's Liquidity
Inspired Entertainment financial leverage refers to using borrowed capital as a funding source to finance Inspired Entertainment ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Inspired Entertainment 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. Financial leverage can amplify the potential profits to Inspired Entertainment's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Inspired Entertainment's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Inspired Entertainment's total debt and its cash.
Another Deeper Perspective
Inspired Entertainment exhibits very low volatility with skewness of 0.66 and kurtosis of 2.56. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Inspired Entertainment's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Inspired Entertainment's stock price while adding stress to investors as they watch their shares' value plummet.This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
"Buy low, sell high" is a classic mantra in investing, and it might just apply to Inspired Entertainment (NASDAQ: INSE) as it hovers near its 52-week low of 6.51. With a current price around 7.48, the stock presents a potential entry point for investors willing to weather short-term volatility. Despite a challenging operating margin of 0.19%, the company maintains a solid current ratio of 1.77, indicating a decent liquidity position. While the EPS estimate for the next quarter suggests a loss of 0.12, the long-term outlook remains promising with a Wall Street target price of 12.8, suggesting significant upside potential..
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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 Vlad Skutelnik do not own shares of Inspired Entertainment. Please refer to our Terms of Use for any information regarding our disclosure principles.