Is Netcapital Stock a Good Investment?
Netcapital Investment Advice | NCPLW |
- Examine Netcapital's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Netcapital's leadership team and their track record. Good management can help Netcapital navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Asset Management & Custody Banks space and any emerging trends that could impact Netcapital's business and its evolving consumer preferences.
- Compare Netcapital's performance and market position to its competitors. Analyze how Netcapital is positioned in terms of product offerings, innovation, and market share.
- Check if Netcapital pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Netcapital's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Netcapital stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Netcapital is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Good | Details | |
Volatility | Out of control | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | High | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Not Available | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Netcapital Stock
Researching Netcapital's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company had not issued any dividends in recent years.
To determine if Netcapital is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Netcapital's research are outlined below:
| Netcapital is way too risky over 90 days horizon | |
| Netcapital has some characteristics of a very speculative penny stock | |
| Netcapital appears to be risky and price may revert if volatility continues | |
| Netcapital has high likelihood to experience some financial distress in the next 2 years | |
| Netcapital has accumulated 2.42 M in total debt with debt to equity ratio (D/E) of 0.14, which may suggest the company is not taking enough advantage from borrowing. Netcapital has a current ratio of 0.77, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Note, when we think about Netcapital's use of debt, we should always consider it together with its cash and equity. | |
| The entity reported the revenue of 4.95 M. Net Loss for the year was (4.99 M) with profit before overhead, payroll, taxes, and interest of 1.6 M. | |
| Netcapital has accumulated about 477.13 K in cash with (4.88 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.17, which can makes it an attractive takeover target, given it will continue generating positive cash flow. | |
| Netcapital has a frail financial position based on the latest SEC disclosures |
Netcapital Quarterly Accounts Payable |
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Netcapital's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.17) | (0.18) | |
| Return On Capital Employed | (0.10) | (0.10) | |
| Return On Assets | (0.12) | (0.11) | |
| Return On Equity | (0.13) | (0.12) |
Determining Netcapital's profitability involves analyzing its financial statements and using various financial metrics to determine if Netcapital is a good buy. For example, gross profit margin measures Netcapital's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Netcapital's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Netcapital's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Netcapital. Check Netcapital's Beneish M Score to see the likelihood of Netcapital's management manipulating its earnings.
Evaluate Netcapital's management efficiency
The company has return on total asset (ROA) of (0.1084) % which means that it has lost $0.1084 on every $100 spent on assets. This is way below average. Similarly, it shows a return on equity (ROE) of (0.2504) %, meaning that it generated substantial loss on money invested by shareholders. Netcapital's management efficiency ratios could be used to measure how well Netcapital manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to -0.18 in 2025. Return On Capital Employed is likely to climb to -0.1 in 2025. At this time, Netcapital's Total Assets are fairly stable compared to the past year. Total Current Assets is likely to climb to about 1.5 M in 2025, whereas Intangible Assets are likely to drop slightly above 13.4 M in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 2.82 | 2.96 | |
| Tangible Book Value Per Share | 1.73 | 1.81 | |
| Enterprise Value Over EBITDA | (14.28) | (14.99) | |
| Price Book Value Ratio | 2.67 | 2.80 | |
| Enterprise Value Multiple | (14.28) | (14.99) | |
| Price Fair Value | 2.67 | 2.80 | |
| Enterprise Value | 102.6 M | 91.2 M |
The decision-making processes within Netcapital are key to its success in a competitive market. By evaluating these processes, we assess the stock's potential for future gains.
Beta 0.053 |
Basic technical analysis of Netcapital Stock
As of the 26th of February, Netcapital secures the Mean Deviation of 21.41, risk adjusted performance of 0.1539, and Downside Deviation of 23.78. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Netcapital, as well as the relationship between them. Please verify Netcapital information ratio and downside variance to decide if Netcapital is priced some-what accurately, providing market reflects its recent price of 0.0404 per share. As Netcapital appears to be a penny stock we also strongly suggest to check its total risk alpha numbers.Netcapital's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Netcapital insiders, such as employees or executives, is commonly permitted as long as it does not rely on Netcapital's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Netcapital insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Kraysler Coreen Sarah over a week ago Acquisition by Kraysler Coreen Sarah of 200000 shares of Netcapital subject to Rule 16b-3 | ||
Avi Liss over six months ago Acquisition by Avi Liss of 20000 shares of Netcapital at 1.4 subject to Rule 16b-3 |
Understand Netcapital's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Netcapital's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1539 | |||
| Market Risk Adjusted Performance | 1.75 | |||
| Mean Deviation | 21.41 | |||
| Semi Deviation | 17.05 | |||
| Downside Deviation | 23.78 | |||
| Coefficient Of Variation | 509.98 | |||
| Standard Deviation | 30.58 | |||
| Variance | 935.37 | |||
| Information Ratio | 0.1956 | |||
| Jensen Alpha | 5.97 | |||
| Total Risk Alpha | 5.78 | |||
| Sortino Ratio | 0.2515 | |||
| Treynor Ratio | 1.74 | |||
| Maximum Drawdown | 167.22 | |||
| Value At Risk | (31.00) | |||
| Potential Upside | 70.48 | |||
| Downside Variance | 565.68 | |||
| Semi Variance | 290.56 | |||
| Expected Short fall | (32.69) | |||
| Skewness | 1.48 | |||
| Kurtosis | 3.58 |
| Risk Adjusted Performance | 0.1539 | |||
| Market Risk Adjusted Performance | 1.75 | |||
| Mean Deviation | 21.41 | |||
| Semi Deviation | 17.05 | |||
| Downside Deviation | 23.78 | |||
| Coefficient Of Variation | 509.98 | |||
| Standard Deviation | 30.58 | |||
| Variance | 935.37 | |||
| Information Ratio | 0.1956 | |||
| Jensen Alpha | 5.97 | |||
| Total Risk Alpha | 5.78 | |||
| Sortino Ratio | 0.2515 | |||
| Treynor Ratio | 1.74 | |||
| Maximum Drawdown | 167.22 | |||
| Value At Risk | (31.00) | |||
| Potential Upside | 70.48 | |||
| Downside Variance | 565.68 | |||
| Semi Variance | 290.56 | |||
| Expected Short fall | (32.69) | |||
| Skewness | 1.48 | |||
| Kurtosis | 3.58 |
Consider Netcapital's intraday indicators
Netcapital intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Netcapital stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Netcapital time-series forecasting models is one of many Netcapital's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Netcapital's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Netcapital Stock media impact
Far too much social signal, news, headlines, and media speculation about Netcapital that are available to investors today. That information is available publicly through Netcapital media outlets and privately through word of mouth or via Netcapital internal channels. However, regardless of the origin, that massive amount of Netcapital data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Netcapital news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Netcapital relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Netcapital's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Netcapital alpha.
Additional Tools for Netcapital Stock Analysis
When running Netcapital's price analysis, check to measure Netcapital's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Netcapital is operating at the current time. Most of Netcapital's value examination focuses on studying past and present price action to predict the probability of Netcapital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Netcapital's price. Additionally, you may evaluate how the addition of Netcapital to your portfolios can decrease your overall portfolio volatility.