We consider Casa Systems moderately volatile.
Casa Systems secures Sharpe Ratio (or Efficiency) of 0.009, which signifies that the company had 0.009% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for Casa Systems, which you can use to evaluate future volatility of the firm. Please confirm Casa Systems Mean Deviation of 3.15,
risk adjusted performance of 0.0831, and Downside Deviation of 4.37 to double-check if the risk estimate we provide is consistent with the expected return of 0.0371%.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Casa Systems income statement, its balance sheet, and the statement of cash flows. Potential Casa Systems investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Casa Systems investors may use each financial statement separately, they are all related. The changes in Casa Systems's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Casa Systems's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Casa Systems
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Casa Systems performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Casa Systems shares is the value that is considered the true value of the share. If
the intrinsic value of Casa is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Casa Systems. Please read more on our
fundamental analysis page.
Watch out for price decline
Please consider monitoring Casa Systems on a daily basis if you are holding a position in it. Casa Systems is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Casa Systems stock to be traded above the $1 level to remain listed. If Casa Systems stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Casa Systems's Liquidity
Casa Systems
financial leverage refers to using borrowed capital as a funding source to finance Casa Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Casa Systems 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 Casa Systems' 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 Casa Systems' 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 Casa Systems's total debt and its cash.
Another Deeper Perspective
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Casa Systems is not uncomon. Institutional investor usually refers to an organization that invests money in Casa Systems on behalf of clients or other money managers. Buying and selling of large positions of Casa Systems stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Casa Systems stock. Let's take a look at how the ownership of Casa Systems is distributed among investors.
Ownership Allocation
Casa Systems retains a total of 83.04 Million outstanding shares. Over half of Casa Systems outstanding shares are owned by
other corporate entities. These other corporate entities are typically referred to corporate investors that acquire positions in a given instrument to benefit from reduced trade commissions. Consequently, these
institutions are subject to different rules and regulation than regular investors in Casa Systems. Please watch out for any change in the
institutional holdings of Casa Systems as this could mean something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently
losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.
| Retail Investors5.95% | Insiders25.37% | Institutions68.68% |
| Retail Investors | 5.95 |
| Insiders | 25.37 |
| Institutions | 68.68 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Casa Systems has an asset utilization ratio of 1239.24 percent. This suggests that the company is making $12.39 for each dollar of assets. An increasing asset utilization means that Casa Systems is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets | 384.04 Million | 66.19 |
| Assets Non Current | 110.89 Million | 19.11 |
| Goodwill | 81.86 Million | 14.11 |
| Tax Assets | 3.37 Million | 0.58 |
Our perspective of the current Casa Systems build-up
Treynor Ratio just dropped to -0.41, may suggest upcoming price decrease. Casa Systems exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Casa Systems individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Casa Systems future systematic risk.
Our Bottom Line On Casa Systems
Whereas some firms within the communication equipment industry are still a little expensive, even after the recent corrections, Casa Systems may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Casa Systems valuation and our trade advice on Casa Systems is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Casa Systems.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Casa Systems. Please refer to our
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