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Category: Stock Market and CalAmp
Date: 27 September 2019 Stock Price: $11.74 We take a look at the 2nd quarter earnings release of their 2020 fiscal year of CalAmp a company providing technology solutions for the mobile connected economy.
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About CalAmp
CalAmp (Nasdaq: CAMP) is a technology solutions pioneer transforming the mobile connected economy. We help reinvent business and improve lives around the globe with technology solutions that streamline complex mobile IoT deployments and bring intelligence to the edge. Our software and subscription-based services, scalable cloud platform and intelligent devices collect and assess business-critical data from mobile assets and their contents. We call this The New How, facilitating ecient decision making, optimizing mobile asset utilization and improving road safety. CalAmp, headquartered in Irvine, California, has been publicly traded since 1983. LoJack® is a brand of CalAmp and a leader in stolen vehicle recovery and innovative automotive services
Overview of Conagra's latest earnings report
The numbers we are interested in (for the quarter):
- Revenue: $92.236 million (down from $96.037 million from the same quarter of the previous year)
- Revenue decreased by -3.9% over the last 12 months
- Cost of revenue: $55.566 (down from $56.216 million for the same quarter of the previous year)
- Cost of goods sold decreased by -1.15% over the last 12 months
- Net loss: -$7.37 million (increased from a loss of -$854 thousand for the same quarter of the previous year)
- Diluted loss per share: -$0.22 (increased from a loss of -$0.02 for the same quarter of the previous year)
- Diluted weighted-average shares outstanding: 33.568 million (down from 34.850 million for the same quarter of the previous year)
- Cash and cash equivalents: $193.684 million
- Cash and cash equivalents per share: $5.76
- Cash and cash equivalents makes up 49.14% of CalAmp's market capital
- Cash and cash equivalents makes up 29.3% of CalAmp's total assets
- Accounts receivable: $75.6 million
- Accounts receivable makes up 11.46% of CalAmp's total assets
- Stockholders equity of CalAmp: $193.296 million
- Stockholders equity per share: $5.76
- CalAmp's is trading at 2.03 times its stockholders equity which is within the expected range of between 2 and 4 which most companies tend to trade at.
CalAmp's management commentary on the results and earnings guidance
IRVINE, Calif., Sept. 26, 2019 /PRNewswire/ -- CalAmp (Nasdaq: CAMP), a technology solutions pioneer transforming the mobile connected economy, today reported its financial results for the fiscal 2020 second quarter ended August 31, 2019. "We posted a solid quarter with consolidated revenue, adjusted EBITDA and non-GAAP EPS all within the higher end of the guidance range and further highlighted by a record quarter of Software and Subscription Services revenue that expanded to $31 million, or 33% of total revenue," said Michael Burdiek, president and chief executive officer. "Our recent acquisitions performed well, generating both increased revenue opportunities as well as newly identified cost synergies. Additionally, we are beginning to see the benefits from the 3G to LTE transitions by our Telematics Systems customers, which helped contribute to solid bookings in the quarter. Overall, I am pleased with our progress on key initiatives as we advance our strategic transformation to a global SaaS solutions provider."
The image below shows the 3rd quarter fiscal guidance for CalAmp
The image below shows the 3rd quarter fiscal guidance for CalAmp
CalAmp (NASDAQ: CAMP) stock price history
The image below, obtained from Google, shows the stock price history of CalAmp (NASDAQ:CAMP) over the last 5 years. And it's not been a very good time for CalAmp (NASDAQ: CAMP), especially towards the end of 2018 and start of 2019 with the stock showed sharp declines over a very short period of time . 5 years ago CalAmp stock was trading around $17 a stock, and its currently it's trading at $1.75 That's a negative return of -30.8% over the 5 year period. CalAmp is trading a lot closer to its 52 week low than it is to its 52 week high, which to us is a clear sign that the short term momentum and sentiment of CalAmp stock is very negative.
CalAmp (NASDAQ: CAMP) latest stock valuation
So based on the earnings report and fiscal guidance of CalAmp (NASDAQ: CAMP) what do we value CalAmp (CAMP) stock at? It is very hard to value a stock that is both loss making and is bleeding cash in terms of negative cash flows. Our fall back position in terms of valuations when a company is loss making and cash generation is negative is that we use stockholders equity per share as a base valuation. Reason being this represents the theoretical value is stockholder will receive of the company sells off all its assets, settles all their liabilities and distributes what remains to stockholders. So based on this our valuation our target (full value) price for CalAmp is $5.76 a stock. We therefore believe the stock of CalAmp is slightly overvalued and we would not recommend fundamental long term or value investors buy into the stock at its current price. In fact we currently rate CalAmp as a AVOID