Houston American Net Income vs. Cash And Equivalents

HUSA Stock  USD 1.38  0.09  6.98%   
Considering Houston American's profitability and operating efficiency indicators, Houston American Energy may not be well positioned to generate adequate gross income at this time. It has a very high risk of underperforming in January. Profitability indicators assess Houston American's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2002-03-31
Previous Quarter
-89.1 K
Current Value
-144.8 K
Quarterly Volatility
M
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, Houston American's Sales General And Administrative To Revenue is projected to drop slightly based on the last few years of reporting. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.35, whereas Price To Sales Ratio is forecasted to decline to 23.09. At present, Houston American's Non Operating Income Net Other is projected to increase significantly based on the last few years of reporting. The current year's Interest Income is expected to grow to about 141.1 K, whereas Operating Income is forecasted to decline to (1.8 M).
For Houston American profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Houston American to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Houston American Energy utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Houston American's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Houston American Energy over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Is Oil & Gas Exploration & Production space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Houston American. If investors know Houston will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Houston American listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.32)
Revenue Per Share
0.057
Quarterly Revenue Growth
(0.43)
Return On Assets
(0.08)
Return On Equity
(0.27)
The market value of Houston American Energy is measured differently than its book value, which is the value of Houston that is recorded on the company's balance sheet. Investors also form their own opinion of Houston American's value that differs from its market value or its book value, called intrinsic value, which is Houston American's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Houston American's market value can be influenced by many factors that don't directly affect Houston American's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Houston American's value and its price as these two are different measures arrived at by different means. Investors typically determine if Houston American is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Houston American's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Houston American Energy Cash And Equivalents vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Houston American's current stock value. Our valuation model uses many indicators to compare Houston American value to that of its competitors to determine the firm's financial worth.
Houston American Energy is rated # 3 in net income category among its peers. It is rated # 4 in cash and equivalents category among its peers . At present, Houston American's Net Loss is projected to increase significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Houston American's earnings, one of the primary drivers of an investment's value.

Houston Cash And Equivalents vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Houston American

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
(3.21 M)
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Houston American

Cash

 = 

Bank Deposits

+

Liquidities

 = 
3.9 M
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

Houston Cash And Equivalents Comparison

Houston American is currently under evaluation in cash and equivalents category among its peers.

Houston American Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Houston American, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Houston American will eventually generate negative long term returns. The profitability progress is the general direction of Houston American's change in net profit over the period of time. It can combine multiple indicators of Houston American, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Operating Income-1.7 M-1.8 M
Income Before Tax-3.2 M-3.4 M
Total Other Income Expense Net-1.5 M-1.6 M
Net Loss-3.2 M-3.4 M
Income Tax Expense 5.00  4.75 
Net Loss-952.9 K-1 M
Net Loss-164.6 K-172.9 K
Non Operating Income Net Other204.1 K214.3 K
Interest Income134.4 K141.1 K
Net Interest Income134.4 K141.1 K
Change To Netincome185.6 K176.3 K
Net Loss(0.30)(0.31)
Income Quality(0.08)(0.08)
Net Income Per E B T 1.10  1.04 

Houston Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Houston American. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Houston American position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Houston American's important profitability drivers and their relationship over time.

Use Houston American in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Houston American position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Houston American will appreciate offsetting losses from the drop in the long position's value.

Houston American Pair Trading

Houston American Energy Pair Trading Analysis

The ability to find closely correlated positions to Houston American could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Houston American when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Houston American - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Houston American Energy to buy it.
The correlation of Houston American is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Houston American moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Houston American Energy moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Houston American can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Houston American position

In addition to having Houston American in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Financials ETFs Thematic Idea Now

Financials ETFs
Financials ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Financials ETFs theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Financials ETFs Theme or any other thematic opportunities.
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When determining whether Houston American Energy offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Houston American's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Houston American Energy Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Houston American Energy Stock:
Check out Risk vs Return Analysis.
You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
To fully project Houston American's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Houston American Energy at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Houston American's income statement, its balance sheet, and the statement of cash flows.
Potential Houston American investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Houston American investors may work on each financial statement separately, they are all related. The changes in Houston American's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Houston American'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.