In the world of investing, patience is indeed a virtue. Skillsoft Corp (SKIL) is a prime example of this adage, with its stock gradually ascending in the Consumer Defensive sector. Despite a net income loss of $348.6M and an operating income loss of $87.3M, the company's gross profit stands at a robust $452M. The firm's market capitalization is $74.8M, with 73.48% of shares owned by institutions, indicating significant institutional confidence. The company's return on assets and equity are -0.04 and -0.95, respectively, suggesting room for improvement. However, with a beta of 1.25, Skillsoft presents a higher potential for returns, albeit with increased risk. The company's price to book ratio is a mere 0.12X, indicating that the stock may be undervalued. Despite a probability of bankruptcy at 44.99%, the target price for the stock is $36.67, indicating potential upside. As the company navigates its financial challenges, investors who can weather the storm may see a significant upswing on the horizon. While many are intrigued by the hotels, restaurants, and leisure sector, it's crucial to delve deeper into Skillsoft Corp to accurately assess its true value. Why do we maintain confidence in its full recovery? Is the company's current valuation justified for 2024? In this analysis, I will provide my perspective on Skillsoft's valuation, offering institutional investors a clearer view on whether to take a position in the stock.
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 modest gains experienced by current holders of Skillsoft Corp created some momentum for institutional investors as it was traded today as low as
9.0 and as high as
9.46 per share. The company directors and management have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in
May. The stock standard deviation of daily returns for 90 days investing horizon is currently 10.13. 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.
| 2023 | 2024 (projected) |
Discontinued Operations | 16.1M | 14.3M | Interest Income | 3.6M | 1.9M |
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 decreasing over the last 5 years. Also, Skillsoft Corp Operating Cash Flow Per Share is quite stable at the moment. As the saying goes, "buy low, sell high," and Skillsoft Corp (SKIL) may be presenting such an opportunity. Despite a challenging operating margin of -0.13 and a net income loss of $348.6M, the company's stock has been gradually ascending with a day typical price of $9.24. The education and training services industry player, with a market capitalization of $74.8M, has a book value of 25.442, which is significantly higher than its current price, indicating potential undervaluation. However, investors should be cautious as the company has a high probability of bankruptcy at 44.99%. While the stock shows promise, it's essential to consider the risk factors before making an investment decision..
Skillsoft is expecting lower volatility in July
Despite Skillsoft Corp's recent downside deviation spiking over 10.29, the company's stock is anticipated to have reduced volatility in July. This could signal a stable period for investors, but the company's performance and market conditions must be carefully watched, as downside deviation can indicate market risk. The rise in downside deviation may be temporary, and the prediction of lower volatility could suggest a steadier investment climate ahead. Skillsoft Corp has shown significant return volatility over the selected time period. Understanding market volatility trends can assist investors in market timing. The effective use of volatility indicators can help traders evaluate Skillsoft Corp's stock risk amid both bullish and bearish trends.
The increased volatility accompanying bear markets can affect Skillsoft Corp's stock price and stress investors as their shares devalue, often leading them to diversify their portfolios as prices drop.In conclusion, Skillsoft Corp (SKIL) has been gradually gaining momentum in the market, and the potential for an upsurge is quite promising. The analyst's highest estimated target price stands at a robust
$69.65, with a possible upside price of
$18.33. The overall consensus among analysts is a 'Strong Buy', with two strong buys and one buy recommendation. The company's valuation real value is also impressive at $22.12, significantly higher than both its market and hype values. However, investors should also consider the possible downside price of $0.0925. As we approach the fiscal year end in December, it will be interesting to see how Skillsoft performs..
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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