Here is our free report on icad for Ask Matt readers.
icad (ICAD) gets a Dangerous Rating because of these RED FLAGs:
- Very Expensive valuation: current stock price implies the company will grow revenues at 20% compounded annually for the next 10 years while also improving ROIC from -3.7% to 1.5% within the same time frame.
- Option Liabilities: of $2.1mm or 3% of the current market value
- Asset-write-offs: $4.4mm or 7% of Net Assets
See Appendix 4 to learn how we calculate NOPAT and NOPAT Margin for ICAD. See Appendix 5 for details on how icad’s Invested Capital. Appendix 7 (in the Return on Invested Capital section) shows how a negative NOPAT Margin and terribly low Invested Capital Turns result in a negative ROIC (–3.7%) and negative Economic Profit of $5.4mm while Net Income is negative $2.0mm — during the last fiscal year.