Recon Technology Valuation
| RCON Stock | USD 2.44 0.16 6.15% |
Based on Macroaxis valuation methodology, the company appears to be overvalued. Recon Technology holds a recent Real Value of $1.94 per share. The prevailing price of the company is $2.44. Our model determines the value of Recon Technology from analyzing the company fundamentals such as Shares Outstanding of 10.63 M, operating margin of (0.64) %, and Return On Equity of -0.11 as well as examining its technical indicators and probability of bankruptcy.
Price Book 1.0962 | Enterprise Value 59.8 M | Enterprise Value Ebitda 0.2809 | Price Sales 1.138 | Enterprise Value Revenue 6.5255 |
Overvalued
Today
Please note that Recon Technology's price fluctuation is extremely dangerous at this time. Calculation of the real value of Recon Technology is based on 3 months time horizon. Increasing Recon Technology's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Recon Technology is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Recon Stock. However, Recon Technology's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 2.44 | Real 1.94 | Target 2.01 | Hype 2.33 | Naive 2.38 |
The intrinsic value of Recon Technology's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Recon Technology's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Recon Technology helps investors to forecast how Recon stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Recon Technology more accurately as focusing exclusively on Recon Technology's fundamentals will not take into account other important factors: Recon Technology Cash |
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Recon Technology Total Value Analysis
Recon Technology is at this time estimated to have valuation of 59.8 M with market capitalization of 74.73 M, debt of 40.14 M, and cash on hands of 332.86 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Recon Technology fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
59.8 M | 74.73 M | 40.14 M | 332.86 M |
Recon Technology Investor Information
About 24.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 1.1. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Recon Technology recorded a loss per share of 1.37. The entity last dividend was issued on the 27th of December 2019. The firm had 1:18 split on the 1st of May 2024. Based on the key measurements obtained from Recon Technology's financial statements, Recon Technology is not in a good financial situation at this time. It has a very high probability of going through financial hardship in August.Recon Technology Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Recon Technology has an asset utilization ratio of 12.46 percent. This suggests that the Company is making $0.12 for each dollar of assets. An increasing asset utilization means that Recon Technology is more efficient with each dollar of assets it utilizes for everyday operations.Recon Technology Ownership Allocation
The market capitalization of Recon Technology is $74.73 Million. Recon Technology has significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Note, that even with negative profits, if the true value of the company is larger than the current market value, you may still be able to generate positive returns on investment in this company.Recon Technology Profitability Analysis
The company reported the previous year's revenue of 68.85 M. Net Loss for the year was (49.87 M) with profit before overhead, payroll, taxes, and interest of 22.26 M.About Recon Technology Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Recon Technology. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Recon Technology based exclusively on its fundamental and basic technical indicators. By analyzing Recon Technology's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Recon Technology's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Recon Technology. We calculate exposure to Recon Technology's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Recon Technology's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 18.8 M | 16.9 M |
Recon Technology Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 5 M |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Recon Technology. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. To learn how to invest in Recon Stock, please use our How to Invest in Recon Technology guide.You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Is Oil & Gas Equipment & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Recon Technology. If investors know Recon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Recon Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.37) | Revenue Per Share 8.034 | Quarterly Revenue Growth (0.07) | Return On Assets (0.09) | Return On Equity |
The market value of Recon Technology is measured differently than its book value, which is the value of Recon that is recorded on the company's balance sheet. Investors also form their own opinion of Recon Technology's value that differs from its market value or its book value, called intrinsic value, which is Recon Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Recon Technology's market value can be influenced by many factors that don't directly affect Recon Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Recon Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Recon Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Recon Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.