FRONTEO Stock Analysis, Valuation (NASDAQ:FTEO)
Watch the robo advisor video of FRONTEO stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for FTEO stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
FRONTEO Inc (ADR) Stock Rating 1.4/5
Amigobulls FTEO stock analysis relies on business fundamentals such as FRONTEO revenue growth, profits and return on equity measures from the latest quarter 2018 Q4 earnings. FRONTEO valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. FRONTEO stock rating encapsulates our opinion about the company based on the fundamentals.
Should you sell FTEO stock?
- Over the last 12 months, FRONTEO had an average Net loss of -5.7%.
- With a debt/equity ratio of 1.75, FRONTEO is highly leveraged in comparison to Business Services peers.
- PE ratio is meaningless for FTEO stock as the company has losses.
- The company is trading at a price to sales multiple of 3, which is higher in comparison to the Business Services sector average of 1.6, making FTEO stock expensive.
- A negative ROE of -15.4 indicates that the company is not able to generate profits with the money shareholders have invested.
Investors can use Amigobulls FRONTEO stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.
Among the financials of the company, FRONTEO revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of FTEO technical analysis to check whether the fundamental story is reflected in the market sentiment.