Xcerra Stock Analysis, Valuation (NASDAQ:XCRA)
Investors can watch the Amigobulls Xcerra stock analysis video here. Our analyst opinion covering the buy and sell arguments for XCRA stock is shown in the video.
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.
Xcerra Corp Stock Rating 4.1/5
Amigobulls XCRA stock analysis uses latest quarter 2018 Q3 financial data like Xcerra revenue growth, profit margins and cash flows. Xcerra valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Xcerra stock rating which is indicative of the company's financial performance.
Should you buy XCRA stock?
- Xcerra's average operating margin of 13.15 was exceptional.
- LTM Net margins were good at 10.5% for Xcerra.
- With a debt/equity ratio of 0.01, Xcerra is comparatively less leveraged than its peers in the Computer and Technology sector.
- The price to earnings multiple of 14.3 is attractive when compared with the sector average PE ratio of 25.4.
- The lower PS ratio 1.7 for XCRA stock versus Computer and Technology sector average of 2.9 is a positive for the company.
- Xcerra generates a high return on invested capital of 27.3.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Xcerra at 15.
- The company has a good Free Cash Flow (FCF) margin of 7.6.
Investors can use Amigobulls Xcerra 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.
Xcerra revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.