Macroaxis Stories

Is VOXX International (USA Stocks:VOXX) ready for a correction?

October 10, 2024  By Raphi Shpitalnik
Macroaxis Story
VOXX International, a player in the consumer electronics sector, is catching the eye of investors as a potential strategic buy, especially as the market experiences an upswing. Despite facing challenges, such as a loss in operating income of 27.5 million, the company's stock is trading at a compelling price-to-book ratio of just 0.49X. This suggests that the market may be undervaluing its assets, presenting a unique opportunity for investors willing to look beyond the current financial hurdles. With a solid net asset base of 444 million, VOXX International offers a blend of risk and potential reward that could appeal to those seeking value in a volatile market. With growing interest in the household durables sector, let's take a closer look at VOXX International. Why might investors still find this company appealing? Is its current valuation reasonable? I'll explore VOXX International's valuation to provide you with a clearer perspective on whether it might be a worthwhile investment.
Published over a month ago
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Reviewed by Gabriel Shpitalnik

VOXX International has $76.04 million in liabilities and a Debt to Equity (D/E) ratio of 0.13, indicating it might not be leveraging borrowing as much as it could. Its current ratio stands at 1.8, which is considered healthy for its industry. When evaluating VOXX's debt usage, it's important to also look at its cash and equity positions. Our advice aims to enhance the current expert consensus on VOXX International. We use a dynamic recommendation engine powered by a comprehensive algorithm that assesses the company's growth potential, taking into account all available technical and fundamental data.

Key Arguments

With VOXX International's stock trading at a Price to Book ratio of just 0.49X, the company appears undervalued, especially considering its substantial net assets of 444.01M. Despite a net income loss of 40.9M, the firm's current ratio of 1.84X indicates a solid liquidity position, suggesting potential for a strategic buy as the market rallies.
We determine the current worth of VOXX International using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of VOXX International based exclusively on its fundamental and basic technical indicators. By analyzing VOXX International's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of VOXX International's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of VOXX International. We calculate exposure to VOXX International's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to VOXX International's related companies.

VOXX International Investment Alerts

VOXX investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring VOXX International performance across your portfolios.Please check all investment alerts for VOXX

VOXX International Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare VOXX value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across VOXX International competition to find correlations between indicators driving the intrinsic value of VOXX.

VOXX International Gross Profit

VOXX International Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing VOXX International previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show VOXX International Gross Profit growth over the last 10 years. Please check VOXX International's gross profit and other fundamental indicators for more details.

Details

The entity reported the previous year's revenue of 468.91 M. Net Loss for the year was (40.85 M) with profit before overhead, payroll, taxes, and interest of 134.3 M.

Margins Breakdown

VOXX profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or VOXX International itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of VOXX International profit margins.
Pretax Profit Margin(0.0335)
Operating Profit Margin(0.0513)
Net Profit Margin(0.0178)
Gross Profit Margin0.11
VOXX International Market Cap is increasing over the last 8 years. VOXX International Ptb Ratio is fairly stable at the moment. Additionally, VOXX International Price To Sales Ratio is fairly stable at the moment.
VOXX International Market Cap is increasing over the last 8 years. VOXX International PTB Ratio is increasing over the last 8 years. Additionally, VOXX International Price To Sales Ratio is increasing over the last 8 years. Buy low, sell high is a mantra that resonates with every savvy investor, and VOXX International (NASDAQ: VOXX) might just be the ticket amid the current market rally. With a price-to-book ratio of 0.49X, the stock is trading at a significant discount, suggesting that the market may be undervaluing its assets. Despite a net income loss of 40.9 million, the company's robust book value of 13.18 per share indicates potential for recovery and growth. Additionally, with insiders holding 45.28% of shares, there's a strong vote of confidence from those closest to the company's operations. As the consumer electronics industry continues to evolve, VOXX's strategic positioning could offer a compelling opportunity for investors willing to look beyond short-term challenges..

VOXX International has 86 percent chance to slide way below $6.14 in November

VOXX International's stock is currently experiencing increased volatility, with its kurtosis dropping to 38.45. This indicates a shift in the distribution of returns, suggesting more unpredictable price movements and a higher chance of sharp declines. There's an 86% probability that the stock could fall below $6.14 in November, urging investors to exercise caution due to the heightened risk of significant price swings. Those with low risk tolerance should reassess their positions. The stock's above-average volatility highlights the importance of understanding market trends to better time investments.
In bear markets, this volatility can significantly impact VOXX's stock price, often prompting investors to adjust their portfolios by diversifying into other financial instruments as prices drop.Considering VOXX International's recent performance, it's clear that the stock is facing challenges despite broader market gains. With an analyst consensus rating of "Strong Sell" and a current valuation hype value of 6.07, investors should approach with caution. The highest estimated target price of 8.64 suggests limited upside potential, especially when juxtaposed with the possible downside price of 0.0627. These figures indicate that while there may be some room for growth, the risks appear to outweigh the rewards at this juncture. Investors should weigh these factors carefully and consider whether VOXX aligns with their risk tolerance and investment strategy..

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Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. 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 Raphi Shpitalnik do not own shares of VOXX International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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