Will IMedia Brands (USA Stocks:IMBI) turn things around in August?
 | By Aina Ster | Macroaxis Story |
IMedia Brands (IMBI) has been underperforming in the market, with a quarterly revenue growth of -31% and a net income loss of $70M. The company, part of the Specialty Retail industry, has been struggling with an operating margin of -8% and a return on equity of -1.63. Despite these challenges, analysts are optimistic about the company's future. With two strong buy recommendations, the analyst target price estimated value stands at $1.5, with the highest estimated target price reaching $2. This presents a possible upside price of 15.53. IMedia Brands' market capitalization is a mere $3.4M, while its enterprise value.stands significantly higher at $180.9M. This discrepancy indicates potential undervaluation in the market. The company's valuation real value is $0.47, significantly higher than its current day median price of $0.14. Despite a negative EPS estimate for the current year at -1.77, the EPS estimate for the next year shows improvement at -0.28. This indicates a potential turnaround for the company in the future. With a gross profit of $222.6M and revenue of $544.6M, IMedia Brands has the financial foundation to implement strategic changes to improve its profitability. In conclusion, despite its current financial struggles, IMedia Brands shows potential for a bullish turnaround in August. Investors should keep a close eye on this stock. The Enterprise Value of iMedia Brands has been observed to decline compared to previous years. The Enterprise Value for the preceding year was reported at $370.01 million. Currently, the Invested Capital is projected to increase to approximately $184.2 million, while the Net Income Per Employee is expected to decrease to -$1.1k. As some baby boomers express concerns about the internet and direct marketing retail space, it's worth examining iMedia Brands. We will explore why we remain optimistic in anticipation of a recovery. In this article, I will also discuss several factors affecting iMedia Brands' products and services, and explain how these may impact traders of iMedia Brands.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Raphi Shpitalnik
We offer guidance to supplement the standard expert consensus on IMedia Brands. Our advanced recommendation system employs a multidimensional algorithm to assess the company's growth potential, leveraging all technical and fundamental data available at this specific moment.
Deep-dive analysis
IMedia Brands (IMBI) is a specialty retail company in the consumer cyclical sector, specifically within the internet & direct marketing retail service category. Despite the company's heavy investment in selling and marketing expenses, amounting to $149.2M, it has struggled to turn a profit, with a net income from continuing operations reported as a loss of $70.5M. The company's return on assets and return on equity are also in the negative, standing at -0.05 and -1.63 respectively. Furthermore, IMedia Brands has been facing a challenging market environment, as evidenced by its daily balance of power of -0.67 and a total risk alpha of -2.01. However, the company's enterprise value.stands at $180.9M, indicating a potential upside of 21.95. While the company's performance has been less than stellar, with an EPS estimate for the current year at a loss of $1.77, the company's low price of $0.14 could present an opportunity for investors looking for a turnaround play. The performance of IMedia Brands in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence IMedia Brands' stock prices. When investing in IMedia Brands, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, IMedia Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as IMedia Brands carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
Watch out for price decline
Please consider monitoring IMedia Brands on a daily basis if you are holding a position in it. IMedia Brands is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as IMedia Brands stock to be traded above the $1 level to remain listed. If IMedia Brands stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is IMedia Brands's Liquidity
IMedia Brands financial leverage refers to using borrowed capital as a funding source to finance IMedia Brands ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. IMedia Brands financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to IMedia Brands' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of IMedia Brands' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between IMedia Brands's total debt and its cash.
Breaking down IMedia Brands Further
IMedia Brands (IMBI.US), a player in the Specialty Retail industry, is showing signs of a potential bullish turnaround in August. The company, which operates within the Consumer Cyclical category, has a market capitalization of $3.43M and a book value of 0.578. Despite a net loss of $70M and an operating income loss of $42.3M, the company has managed to maintain a current ratio of 1.33X, indicating its ability to meet short-term obligations. The company's shares have a beta of 2.05, implying a higher volatility compared to the market. However, it's important to note that the number of shares shorted is 237.23K, with a short ratio of 0.80X, suggesting that investors are expecting the price to rise. The company's net assets stand at $443.75M, with a working capital of $17.64M, providing some financial stability. Despite the company's current financial challenges, it has a potential upside of 21.95, and a target price of $1.5. However, investors should also be aware of the company's high probability of bankruptcy at 68.57%. With a total debt of $182.38M and a debt to equity ratio of 5.44%, IMedia Brands' financial health requires careful scrutiny.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
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 Aina Ster do not own shares of IMedia Brands. Please refer to our Terms of Use for any information regarding our disclosure principles.