Based on the key measurements obtained from Locafy's financial statements, Locafy Limited is not in a good financial situation at this time. It has a very high probability of going through financial hardship in April. At this time, Locafy's Short and Long Term Debt is fairly stable compared to the past year. Total Current Assets is likely to climb to about 3 M in 2025, whereas Total Stockholder Equity is likely to drop slightly above 2.3 M in 2025. Key indicators impacting Locafy's financial strength include:
The financial analysis of Locafy is a critical element in measuring its lifeblood. Investors should not minimize Locafy's ability to pay suppliers or employees on time, ensuring interest payments are not accumulating.
Please note, the imprecision that can be found in Locafy's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Locafy Limited. Check Locafy's Beneish M Score to see the likelihood of Locafy's management manipulating its earnings.
Locafy Stock Summary
Locafy competes with Locafy, Rail Vision, Heartbeam Warrant, and Iveda Solutions. Locafy Limited operates as a software-as-a-service company that specializes in local search engine marketing in Australia, Europe, the United States, and internationally. Locafy Limited was incorporated in 2009 and is headquartered in Subiaco, Australia. Locafy operates under Internet Content Information classification in the United States and is traded on NASDAQ Exchange. It employs people.
Specialization
Communication Services, Internet Content & Information
The reason investors look at the income statement is to determine what Locafy's earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
Comparative valuation techniques use various fundamental indicators to help in determining Locafy's current stock value. Our valuation model uses many indicators to compare Locafy value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Locafy competition to find correlations between indicators driving Locafy's intrinsic value. More Info.
Locafy Limited is currently regarded as number one stock in return on equity category among its peers. It also is currently regarded as number one stock in return on asset category among its peers . At this time, Locafy's Return On Equity is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Locafy by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.
Locafy Limited Systematic Risk
Locafy's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Locafy volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was twenty with a total number of output elements of fourty-one. The Beta measures systematic risk based on how returns on Locafy Limited correlated with the market. If Beta is less than 0 Locafy generally moves in the opposite direction as compared to the market. If Locafy Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Locafy Limited is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Locafy is generally in the same direction as the market. If Beta > 1 Locafy moves generally in the same direction as, but more than the movement of the benchmark.
Steps to analyze company Financials for Investing
There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as Locafy is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of Locafy has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it. In summary, you can determine if Locafy's financials are consistent with your investment objective using the following steps:
Review Locafy's balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
Study the cash flow inflows and outflows to understand Locafy's liquidity and solvency.
Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
Compare Locafy's financials to those of its peers to see how it stacks up and identify any potential red flags.
Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if Locafy's stock is overvalued or undervalued.
Remember, these are just guidelines and should not be the only basis for investment decisions. It is always important to analyze the leading stock market indicators., conduct additional research and seek professional advice if needed.
Today, most investors in Locafy Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Locafy's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Locafy growth as a starting point in their analysis.
Along with financial statement analysis, the daily predictive indicators of Locafy help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Locafy Limited. We use our internally-developed statistical techniques to arrive at the intrinsic value of Locafy Limited based on widely used predictive technical indicators. In general, we focus on analyzing Locafy Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Locafy's daily price indicators and compare them against related drivers.
When running Locafy's price analysis, check to measure Locafy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Locafy is operating at the current time. Most of Locafy's value examination focuses on studying past and present price action to predict the probability of Locafy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Locafy's price. Additionally, you may evaluate how the addition of Locafy to your portfolios can decrease your overall portfolio volatility.