B. Riley Financial has been navigating a challenging landscape in the financial services sector, with a recent net income loss of 99.9M. Despite these hurdles, the company boasts a solid current ratio of 1.88, indicating a healthy ability to cover short-term liabilities. With total revenue reaching 1.6B, investors are left wondering if the stock is set for a rebound. As October 2024 approaches, the question remains: can B. Riley Financial leverage its strengths to turn the tide and deliver a price surge? With many millennials steering clear of the capital markets, it’s worth taking a closer look at B Riley Financial and its current market trends. Understanding why investors might still find value in this company is key. Is B Riley's business model sustainable in 2024? In this analysis, we’ll explore the company’s valuation and provide insights to help you decide whether to invest in this stock.
We determine the current worth of B Riley Financial using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of B Riley Financial based exclusively on its
fundamental and basic
technical indicators. By analyzing B Riley's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
B Riley's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of B Riley. We calculate exposure to B Riley's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to B Riley's related companies.
B Riley Financial Investment Alerts
RILY investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring B Riley Financial performance across your portfolios.Please check all
investment alerts for RILY
B Riley Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare RILY value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across B Riley competition to find
correlations between indicators driving the intrinsic value of RILY.
An Additional Perspective On B Riley Financial
The big decline in price over the last few months for B Riley Financial created some momentum for investors as it was traded today as low as
5.69 and as high as
6.5 per share. The company directors and management failed to add value to investors and position the entity supply of money to exploit market volatility in
August. However, diversifying your holdings with B Riley Financial or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 11.52. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the B Riley partners.
| 2021 | 2022 | 2023 | 2024 (projected) |
Total Revenue | 1.7B | 1.1B | 1.6B | 1.7B | Depreciation And Amortization | 1.0B | 1.0B | 167.9K | 159.5K |
Margins Breakdown
RILY profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or B Riley itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of B Riley profit margins.
| Pretax Profit Margin | (0.0685) |
| Operating Profit Margin | 0.1 |
| Net Profit Margin | (0.0478) |
| Gross Profit Margin | 0.55 |
B Riley Enterprise Value is fairly stable at the moment.
Also, B Riley Price To Sales Ratio is increasing over the last 8 years. The previous year's value of B Riley Price To Sales Ratio was 0.69. In the world of finance, the saying "buy low, sell high" often rings true, and B. Riley Financial (NASDAQ: RILY) may present an intriguing opportunity as we approach October 2024. With a current price-to-book ratio of 0.77 and a market capitalization of $175.71 million, the stock appears undervalued compared to its book value of $7.59 per share. Despite reporting losses of $99.9 million in net income and a concerning quarterly revenue growth of -0.25, the company maintains a solid current ratio of 1.88, indicating good short-term financial health. Additionally, with a forward dividend yield of 11.8%, investors might find the potential for income appealing, even amid the challenges. If B. Riley can turn around its performance, the stock could be poised for a significant price surge..
Some RILY technical indicators suggest throwback
B Riley Financial's stock currently shows a risk alpha of -2.68, signaling potential challenges ahead. This negative figure suggests the stock is lagging behind its expected performance, which might raise concerns for investors. With the market experiencing volatility, it's essential to monitor these technical indicators to gauge the stock's future movements.
B Riley's stock is exhibiting above-average volatility, which can be crucial for investors looking to time their trades. Understanding how market fluctuations affect B Riley's performance can help traders manage risk during both rising and falling markets. Increased volatility, especially in bear markets, can lead to significant price drops, prompting investors to rethink their portfolios as they navigate through uncertain times.Investing in B Riley Financial stock presents a complex picture.
With an analyst consensus leaning towards a "Strong Sell," the current market dynamics suggest caution. The estimated target price hovers around
1.50, significantly lower than its valuation real value of
3.53. This disparity raises questions about the stock's potential for recovery and growth. While some forecasts hint at a possible upside price of
15.14, the risks involved cannot be overlooked. Investors should weigh these factors carefully before making any decisions, as the path to regaining control appears fraught with uncertainty..
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
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