Forward Industries Inc (FORD:NSD) STA Research starts with a Speculative Buy

STA Research
by: STA Research

STA Research just initiated coverage of  Forward Industries Inc with a Speculative Buy rating, and a 12 month target forecast of $2.50 per share.

Based on the Forward Industries Inc stock forecasts from 1 analysts, the average analyst target price for Forward Industries Inc is $2.50 over the next 12 months. Forward Industries Inc’s average analyst rating is Speculative. Stock Target Advisor’s own stock analysis of Forward Industries Inc is Bearish, which is based on 2 positive signals and 8 negative signals. At the last closing, Forward Industries Inc’s stock price was USD 1.74Forward Industries Inc’s stock price has changed by +9.43% over the past week, +17.57% over the past month and -34.59% over the last year.

What we like:

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

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