Converge Technology Solutions Stock Buy Hold or Sell Recommendation

CTS Stock  CAD 5.47  0.04  0.74%   
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Converge Technology Solutions is 'Strong Sell'. The recommendation algorithm takes into account all of Converge Technology's available fundamental, technical, and predictive indicators you will find on this site.
  
Check out Converge Technology Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Converge and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Converge Technology Solutions. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Execute Converge Technology Buy or Sell Advice

The Converge recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Converge Technology Solutions. Macroaxis does not own or have any residual interests in Converge Technology Solutions or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Converge Technology's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Converge TechnologyBuy Converge Technology
Strong Sell

Market Performance

OKDetails

Volatility

Very riskyDetails

Hype Condition

Over hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Moves totally opposite to the marketDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon Converge Technology Solutions has a Mean Deviation of 2.57, Semi Deviation of 1.4, Standard Deviation of 6.93, Variance of 48.03, Downside Variance of 5.88 and Semi Variance of 1.96
We provide trade advice to complement the prevailing expert consensus on Converge Technology. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Converge Technology is not overpriced, please confirm all Converge Technology fundamentals, including its price to earning, cash per share, price to earnings to growth, as well as the relationship between the gross profit and book value per share .

Converge Technology Trading Alerts and Improvement Suggestions

Converge Technology is way too risky over 90 days horizon
Converge Technology appears to be risky and price may revert if volatility continues
Converge Technology Solutions has accumulated 639 K in total debt with debt to equity ratio (D/E) of 0.33, which is about average as compared to similar companies. Converge Technology has a current ratio of 0.97, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Converge Technology until it has trouble settling it off, either with new capital or with free cash flow. So, Converge Technology's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Converge Technology sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Converge to invest in growth at high rates of return. When we think about Converge Technology's use of debt, we should always consider it together with cash and equity.
The entity reported the revenue of 2.59 B. Net Loss for the year was (177.71 M) with profit before overhead, payroll, taxes, and interest of 691.44 M.
On 31st of January 2025 Converge Technology paid C$ 0.04 per share dividend to its current shareholders
Latest headline from news.google.com: Investment Report - Stock Traders Daily

Converge Technology Returns Distribution Density

The distribution of Converge Technology's historical returns is an attempt to chart the uncertainty of Converge Technology's future price movements. The chart of the probability distribution of Converge Technology daily returns describes the distribution of returns around its average expected value. We use Converge Technology Solutions price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Converge Technology returns is essential to provide solid investment advice for Converge Technology.
Mean Return
0.91
Value At Risk
-3.79
Potential Upside
3.98
Standard Deviation
6.93
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Converge Technology historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Converge Technology Cash Flow Accounts

202020212022202320242025 (projected)
Change In Cash44.2M183.4M(88.3M)5.3M(34.6M)(32.8M)
Net Borrowings63.7M(36.2M)(150.0M)392.1M450.9M473.5M
Other Non Cash Items20.8M13.5M14.3M165.6M41.6M35.8M
Capital Expenditures5.0M6.3M23.9M10.8M1.4M1.4M
Net Income(4.2M)16.4M22.8M(1.4M)(177.7M)(168.8M)
End Period Cash Flow64.8M248.2M159.9M170.4M142.7M100.8M
Change To Netincome15.4M22.5M23.9M11.4M13.1M14.8M
Change To Inventory(10.9M)(56.5M)38.1M81.8M14.4M15.1M
Investments(66.6M)(277.8M)(463.4M)(103.9M)(39.1M)(41.1M)
Free Cash Flow46.6M80.8M17.6M185.0M267.9M281.3M
Depreciation27.0M39.6M80.1M120.0M100.5M54.0M

Converge Technology Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Converge Technology or IT Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Converge Technology's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Converge stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.81
β
Beta against Dow Jones-0.88
σ
Overall volatility
7.13
Ir
Information ratio 0.15

Converge Technology Volatility Alert

Converge Technology Solutions is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Converge Technology'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 Converge Technology'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.

Converge Technology Fundamentals Vs Peers

Comparing Converge Technology's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Converge Technology's direct or indirect competition across all of the common fundamentals between Converge Technology and the related equities. This way, we can detect undervalued stocks with similar characteristics as Converge Technology or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Converge Technology's fundamental indicators could also be used in its relative valuation, which is a method of valuing Converge Technology by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Converge Technology to competition
FundamentalsConverge TechnologyPeer Average
Return On Equity-0.37-0.31
Return On Asset0.0176-0.14
Profit Margin(0.07) %(1.27) %
Operating Margin0.03 %(5.51) %
Current Valuation1.15 B16.62 B
Shares Outstanding188.61 M571.82 M
Shares Owned By Insiders5.55 %10.09 %
Shares Owned By Institutions26.60 %39.21 %
Number Of Shares Shorted1.59 M4.71 M
Price To Earning69.80 X28.72 X
Price To Book2.88 X9.51 X
Price To Sales0.40 X11.42 X
Revenue2.59 B9.43 B
Gross Profit691.44 M27.38 B
EBITDA144.21 M3.9 B
Net Income(177.71 M)570.98 M
Cash And Equivalents184.18 M2.7 B
Cash Per Share0.86 X5.01 X
Total Debt639 K5.32 B
Debt To Equity0.33 %48.70 %
Current Ratio0.99 X2.16 X
Book Value Per Share1.90 X1.93 K
Cash Flow From Operations269.38 M971.22 M
Short Ratio0.67 X4.00 X
Earnings Per Share(0.90) X3.12 X
Price To Earnings To Growth0.17 X4.89 X
Target Price5.5
Number Of Employees2.7 K18.84 K
Beta1.64-0.15
Market Capitalization1.03 B19.03 B
Total Asset2.19 B29.47 B
Retained Earnings(241.92 M)9.33 B
Working Capital(87.6 M)1.48 B

Converge Technology Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Converge . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Converge Technology Buy or Sell Advice

When is the right time to buy or sell Converge Technology Solutions? Buying financial instruments such as Converge Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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Tips ETFs Theme
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Other Information on Investing in Converge Stock

Converge Technology financial ratios help investors to determine whether Converge Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Converge with respect to the benefits of owning Converge Technology security.