Macroaxis Stories

What is October outlook for Rubicon (NASDAQ:RBCN)?

September 10, 2021  By Rifka Kats
Macroaxis Story
The next fiscal quarter end is expected on the 30th of September 2021. The stock is still going through an active upward rally. Rubicon Technology Invested Capital Average is quite stable at the moment as compared to the past year. The company's current value of Invested Capital Average is estimated at 121.89 Million. Market Capitalization is expected to rise to about 35.3 M this year, although the value of Net Income Per Employee will most likely fall to (64.7 K). As many baby boomers are still indifferent towards technology space, it makes sense to outline Rubicon Technology as a unique choice for millenniums.
Published over a year ago
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Reviewed by Michael Smolkin

Average Equity is expected to rise to about 135.2 M this year, although the value of Debt to Equity Ratio will most likely fall to 0.012. Rubicon Technology has a current ratio of 21.25, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Rubicon Technology financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Rubicon Technology, including all of Rubicon Technology's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Rubicon Technology assets, the company is considered highly leveraged. Understanding the composition and structure of overall Rubicon Technology debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

How important is Rubicon Technology's Liquidity

Rubicon Technology financial leverage refers to using borrowed capital as a funding source to finance Rubicon Technology ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Rubicon Technology 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 Rubicon Technology's 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 Rubicon Technology's 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 Rubicon Technology's total debt and its cash.

How is Rubicon allocating its cash?

To perform a cash flow analysis of Rubicon Technology, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Rubicon Technology is receiving and how much cash it distributes out in a given period. The Rubicon Technology cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Is Rubicon Technology valued appropriately by the market?

The entity reported the previous year's revenue of 4.47 M. Net Loss for the year was (1.06 M) with profit before overhead, payroll, taxes, and interest of 1.24 M.

Liabilities Breakdown

376.7 K
Tax Liabilities
653.9 K
Long-Term Liabilities
Total Liabilities1.84 Million
Current Liabilities1.84 Million
Long-Term Liabilities653,866
Tax Liabilities376,726

Our perspective of the latest Rubicon Technology rise

Latest market risk adjusted performance is at -0.2.
As of the 10th of September, Rubicon Technology holds the risk adjusted performance of (0.06), and Coefficient Of Variation of (1,080). Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Rubicon Technology, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to break down nineteen technical drivers for Rubicon Technology, which can be compared to its competitors. Please check Rubicon Technology treynor ratio, and the relationship between the standard deviation and downside variance to decide if Rubicon Technology is priced some-what accurately, providing market reflects its current price of 10.7 per share. Given that Rubicon Technology has jensen alpha of (0.17), we recommend you to check out Rubicon Technology's recent market performance to make sure the company can sustain itself at a future point.

Our Takeaway on Rubicon Technology Investment

Whereas some companies under the semiconductor equipment & materials industry are still a bit expensive, Rubicon Technology may offer a potential longer-term growth to institutional investors. To sum up, as of the 10th of September 2021, our research shows that Rubicon Technology is a rather not too volatile investment opportunity with a high chance of financial distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our ongoing 90 days buy vs. sell advice on the company is Strong Hold.

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Editorial Staff

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. View Profile
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 Rifka Kats do not own shares of Rubicon Technology. Please refer to our Terms of Use for any information regarding our disclosure principles.

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