Skillsoft Corp has liabilities of 641.17M and a Debt to Equity (D/E) ratio of 0.62, which is average for its industry. Its current ratio is 0.76, suggesting a negative working capital and potential difficulty in meeting financial obligations. It's crucial to consider Skillsoft's debt in conjunction with its cash and equity. The company's performance score is 2 out of 100, and it has a beta of 1.19, indicating a slightly higher market risk. If the market rises, Skillsoft is expected to outperform it, but it may underperform in a negative market. For a quick investment decision, consider Skillsoft's treynor ratio and the relationship between the semi variance and rate of daily change, as well as its existing price patterns.
Top Findings
Despite reporting a loss in net income from continuing operations of
348.6M, Skillsoft Corp's low price to book ratio of 0.12X and a market capitalization of
78.8M present a potentially undervalued investment opportunity. With a total revenue of
553.2M and a debt to equity ratio of just 0.62%, the company's financial health appears stable, making it a promising investment for July 2024.
We determine the current worth of Skillsoft Corp 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 Skillsoft Corp based exclusively on its
fundamental and basic
technical indicators. By analyzing Skillsoft Corp'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
Skillsoft Corp'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 Skillsoft Corp. We calculate exposure to Skillsoft Corp's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Skillsoft Corp's related companies.
Skillsoft Corp Investment Alerts
Skillsoft 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 Skillsoft Corp performance across your portfolios.Please check all
investment alerts for Skillsoft
Skillsoft Corp Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Skillsoft value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Skillsoft Corp competition to find
correlations between indicators driving the intrinsic value of Skillsoft.
Skillsoft Corp Gross Profit
Skillsoft Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Skillsoft Corp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Skillsoft Corp Gross Profit growth over the last 10 years. Please check Skillsoft Corp's
gross profit and other
fundamental indicators for more details.
Breaking down the case for Skillsoft Corp
The latest rise in Skillsoft Corp short term price appreciation created some momentum for institutional investors as it was traded today as low as
10.31 and as high as
10.31 per share. The company executives have successfully maneuvered the company at convenient times to take advantage of all market conditions in
May. The stock standard deviation of daily returns for 90 days investing horizon is currently 10.07. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Skillsoft Corp partners.
Margins Breakdown
Skillsoft profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Skillsoft Corp itself as indicators of financial health and management effectiveness.
Please look more closely at the different varieties of Skillsoft Corp profit margins.
| Pretax Profit Margin | (1.63) |
| Operating Profit Margin | 0.0987 |
| Net Profit Margin | (1.65) |
| Gross Profit Margin | 0.81 |
Skillsoft Corp Free Cash Flow Yield is quite stable at the moment. Further, Skillsoft Corp Operating Cash Flow Per Share is decreasing over the last 5 years. "Buy when others are fearful" - this adage rings true for Skillsoft Corp, a player in the Education & Training Services industry. Despite a net income loss of $348.6M and a high probability of bankruptcy at 45.07%, the company's undervalued stock price presents a potential upside of 10.58%. With a book value per share of 25.44X and a current trading price of 10.31, the stock is trading at a significant discount. Furthermore, insiders own 16.83% of the company, suggesting they have confidence in its future. However, investors should be aware of the company's high total debt of $641.17M and negative operating margin of 0.13..
Will Skillsoft Corp growth be reasonable after the rise?
Skillsoft Corp's stock exhibits promising signs as its value at risk has dropped to -9.83, indicating a decrease in potential loss and reduced volatility. While the company's growth has been commendable, investors should ponder its long-term sustainability. Current market conditions and Skillsoft's recent performance suggest continued growth, albeit possibly at a slower rate. Investors should align their risk tolerance and investment objectives before deciding. Skillsoft Corp's stock has shown significant volatility over the selected time frame. Understanding market volatility trends can aid investors in market timing. Proper use of volatility indicators allows traders to measure Skillsoft Corp's stock risk during both bullish and bearish trends.
The heightened volatility of bear markets can impact Skillsoft Corp's stock price, causing investor stress as share values decline, often prompting portfolio rebalancing with diverse financial instruments.In conclusion, Skillsoft Corp's strong advance today is a positive sign for investors, but it's crucial to consider the broader financial landscape. The company's valuation real value stands at
$22.66, significantly higher than its naive expected forecast value of $9.04. This suggests that the market may be undervaluing the stock. Furthermore, the analyst overall consensus is a 'Strong Buy', with two strong buys and one hold. The estimated target price ranges from $57.1 to a high of
$69.65, indicating a potential upside price of $19.11. However, investors should also be aware of the possible downside price of $0.1. Therefore, while Skillsoft Corp's current trajectory is promising, investors should remain cautious and consider these factors before making a decision..
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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 Gabriel Shpitalnik do not own shares of Skillsoft Corp. Please refer to our
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