Last Updated: 17 Sep 2024
Executive Summary
Forward Industries Inc. (FORD) is a small-cap company with a market capitalization of $40.63 million. The company designs, markets, and distributes transportation and protection solutions for portable electronic devices. FORD has been facing challenges in recent quarters, with revenue and earnings declining year-over-year. The company is also unprofitable, with a trailing twelve-month EBITDA of -$7.41 million. As a result, FORD's stock price has underperformed the broader market, declining by over 50% in the past year.
Company Overview
Forward Industries was founded in 1985 and is headquartered in Hauppauge, New York. The company's products are sold through a network of distributors and retailers in the United States and internationally. FORD's major product categories include cases, covers, and accessories for smartphones, tablets, laptops, and other portable electronic devices.
Fundamental Analysis
FORD's financial performance has been weak in recent quarters. In the most recent quarter, the company reported revenue of $31.36 million, a decline of 9.4% year-over-year. Net income was -$9.1 million, compared to -$5.1 million in the prior-year quarter. The company's gross margin also declined, from 26.7% to 26.7%.
FORD's profitability metrics are also weak. The company has a trailing twelve-month EBITDA margin of -10.2%, and a net income margin of -14.4%. The company's return on assets and return on equity are also negative.
FORD's balance sheet is relatively weak. The company has $12.6 million in cash and equivalents, and $22.3 million in total debt. The company's debt-to-equity ratio is 1.76, which is above the industry average.
Technical Analysis
FORD's stock price has been in a downtrend since early 2022. The stock is currently trading at $3.61, which is below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 30.3, which is in oversold territory.
Short Term Outlook
FORD's short-term outlook is uncertain. The company is facing challenges in the current economic environment, and its financial performance has been weak. The stock price is also in a downtrend, and there is no clear sign of a reversal.
Long Term Outlook
FORD's long-term outlook is also uncertain. The company's products are in a competitive market, and it is unclear if the company can improve its profitability. The stock price is also likely to remain volatile in the near term.
Analyst Recommendations
Analysts are mixed on FORD's stock. Some analysts believe that the company's stock is undervalued, while others believe that the company is facing too many challenges. The average analyst price target for FORD is $2.28, which is below the current stock price.
