Cepton Return On Asset vs. EBITDA

CPTNW Stock  USD 0.01  0  14.61%   
Considering Cepton's profitability and operating efficiency indicators, Cepton Inc may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Cepton's ability to earn profits and add value for shareholders. Price To Sales Ratio is likely to drop to 3.60 in 2024. Days Sales Outstanding is likely to drop to 63.07 in 2024. At this time, Cepton's Net Interest Income is fairly stable compared to the past year. Income Quality is likely to climb to 0.77 in 2024, despite the fact that Operating Income is likely to grow to (48.2 M).
For Cepton profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cepton to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cepton Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cepton's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cepton Inc over time as well as its relative position and ranking within its peers.
  
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Is Application Software 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 Cepton. If investors know Cepton 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 Cepton listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.90)
Revenue Per Share
1.121
Quarterly Revenue Growth
(0.86)
Return On Assets
(0.27)
Return On Equity
(0.45)
The market value of Cepton Inc is measured differently than its book value, which is the value of Cepton that is recorded on the company's balance sheet. Investors also form their own opinion of Cepton's value that differs from its market value or its book value, called intrinsic value, which is Cepton'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 Cepton's market value can be influenced by many factors that don't directly affect Cepton'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 Cepton's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cepton is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cepton'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.

Cepton Inc EBITDA vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Cepton's current stock value. Our valuation model uses many indicators to compare Cepton value to that of its competitors to determine the firm's financial worth.
Cepton Inc is number one stock in return on asset category among its peers. It also is number one stock in ebitda category among its peers . Cepton reported EBITDA of (48.61 Million) in 2023. Comparative valuation analysis is a catch-all technique that is used if you cannot value Cepton by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Cepton EBITDA vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Cepton

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.27
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Cepton

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
(48.61 M)
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Cepton EBITDA Comparison

Cepton is currently under evaluation in ebitda category among its peers.

Cepton Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Cepton, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cepton will eventually generate negative long term returns. The profitability progress is the general direction of Cepton's change in net profit over the period of time. It can combine multiple indicators of Cepton, 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
Accumulated Other Comprehensive Income-345 K-327.8 K
Operating Income-50.7 M-48.2 M
Income Before Tax-48.5 M-46.1 M
Net Loss-48.5 M-46.1 M
Total Other Income Expense Net2.2 M2.1 M
Income Tax Expense18.4 K15.6 K
Net Interest Income1.1 M1.2 M
Interest Income34.2 K32.5 K
Net Loss-55.5 M-52.7 M
Net Loss(3.08)(3.23)
Income Quality 0.73  0.77 
Net Income Per E B T 1.00  1.11 

Cepton Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Cepton. 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 Cepton 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 Cepton's important profitability drivers and their relationship over time.

Use Cepton 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 Cepton 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 Cepton will appreciate offsetting losses from the drop in the long position's value.

Cepton Pair Trading

Cepton Inc Pair Trading Analysis

The ability to find closely correlated positions to Cepton could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Cepton 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 Cepton - 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 Cepton Inc to buy it.
The correlation of Cepton 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 Cepton moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Cepton Inc 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 Cepton 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 Cepton position

In addition to having Cepton 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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Basic Utilities
Basic Utilities Theme
Companies involved in production and distribution of electric, gas, water, and other energy utilities. The Basic Utilities theme has 47 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 Basic Utilities Theme or any other thematic opportunities.
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Additional Tools for Cepton Stock Analysis

When running Cepton's price analysis, check to measure Cepton'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 Cepton is operating at the current time. Most of Cepton's value examination focuses on studying past and present price action to predict the probability of Cepton's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Cepton's price. Additionally, you may evaluate how the addition of Cepton to your portfolios can decrease your overall portfolio volatility.