Exela Technologies Inc. (NASDAQ:XELA): An Opportunity for Fundamental Investors?

Exela Technologies Inc. (NASDAQ:XELA) Relative Strength Index (RSI) is 43.80, with weekly volatility at 4.55% and ATR at 0.02. The XELA stock’s 52-week price range has touched low of $0.09 and a $0.87 high. Intraday shares traded counted 1.85 million, which was 7.08% higher than its 30-day average trading volume of 1.99M. Its shares traded higher over the last trading session, gaining 1.94% on 12/17/20. The shares fell to a low of $0.3561 before closing at $0.36. XELA’s previous close was $0.36 while the outstanding shares total 147.51M. The firm has a beta of 1.83.

Investors have identified the Software – Application company Exela Technologies Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $54.04 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Exela Technologies Inc. (XELA) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For XELA, the company has in raw cash 43.21 million on their books with 38.04 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 309.73 million total, with 390.81 million as their total liabilities.

XELA were able to record -73.05 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 29.11 million. In cash movements, the company had a total of -66.16 million as operating cash flow.

Potential earnings growth for Exela Technologies Inc. (XELA)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Exela Technologies Inc. recorded a total of 305.28 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -22.36% coming in sequential stages and their sales for the Q3 2020 quarter reducing by -0.8%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 234.22 million trying to sell their products during the last quarter, with the result yielding a gross income of 71.06 million. This allows shareholders to hold on to 147.51M with the recently reported earning now reading -0.19 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (-0.20 cents a share).

Having a look at the company’s valuation, the company is expected to record -0.48 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on XELA sounds very interesting.

Is the stock of XELA attractive?

In related news, 10% Owner, Apollo Management Holdings GP, sold 28,647,136 shares of the company’s stock in a transaction that recorded on Mar 11. The sale was performed at an average price of 0.10, for a total value of 2,864,714. In the last 6 months, insiders have changed their ownership in shares of company stock by 14.74%.

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