Avantax Inc Stock Intrinsic Value – AVANTAX INC Reports Second Quarter Earnings Results for 2023 Financial Year
August 27, 2023
🌥️Earnings Overview
On August 9, 2023, AVANTAX INC ($NASDAQ:AVTA) reported their second quarter earnings results for the financial year 2023, ending June 30, 2023. Their total revenue was USD 186.9 million, a 27.2% decline compared to the same quarter of the previous year. Additionally, their reported net income was USD 3.6 million, a 90.9% decrease compared to the same quarter of the previous year.
Price History
The company’s stock opened at $24.6 and closed at $24.0, representing a decrease of 3.1% from the prior closing price of 24.7. AVANTAX INC attributed these declines to weaker demand in certain regions and product lines. Despite these decreases, the company believes that it will remain profitable in the future as new products come to market and demand increases in certain regions. Overall, AVANTAX INC’s second quarter earnings report was largely negative, with reduced incomes and fewer assets compared to the same period in the prior year. Despite these decreases, the company remains optimistic that future quarters will show more positive results. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Avantax Inc. More…
| Total Revenues | Net Income | Net Margin |
| 702.33 | 351.46 | 0.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Avantax Inc. More…
| Operations | Investing | Financing |
| -16.48 | 670.75 | -643.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Avantax Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 821.64 | 410.44 | 10.66 |
Key Ratios Snapshot
Some of the financial key ratios for Avantax Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.0% | 297.8% | 2.3% |
| FCF Margin | ROE | ROA |
| -4.0% | 2.3% | 1.2% |
Analysis – Avantax Inc Stock Intrinsic Value
GoodWhale recently conducted an analysis of AVANTAX INC‘s financials. After our thorough analytical process, we have determined the intrinsic value of one AVANTAX INC share to be approximately $24.3 using our proprietary Valuation Line. At the current trade price of $24.0, the stock is undervalued by 1.3%. This presents a good opportunity for investors to purchase the stock at a fair price. More…
Peers
It is one of several major players in the wealth management industry, alongside Principal Financial Group Inc, SBI Holdings Inc and St James’s Place PLC. All of these firms offer competitive services to help customers manage their finances and plan for the future.
– Principal Financial Group Inc ($NASDAQ:PFG)
Principal Financial Group Inc is a global financial services company that provides retirement, asset management, insurance, and banking solutions to businesses and individuals worldwide. The company has a market capitalization of 17.33B as of 2023, representing the total dollar market value of all outstanding shares. Its Return on Equity (ROE) is 11.55%, which indicates the company’s ability to generate profit from its shareholders’ investments. This strong performance suggests that the company is highly profitable and has been successful in leveraging its assets for growth and shareholder returns.
– SBI Holdings Inc ($TSE:8473)
SBI Holdings Inc is a leading financial services company headquartered in Tokyo, Japan that provides a wide range of products and services including banking, securities, insurance, investment, asset management, fintech, and other financial services. With a market capitalization of 721.18 billion as of 2023, the company’s stock price is expected to remain strong in the near future. Additionally, its return on equity of 10.73% indicates that the company is making effective use of its shareholders’ equity to generate income. SBI Holdings Inc has become one of the largest financial service providers in Japan and continues to grow in size and scope as it increases its presence in the worldwide market.
– St James’s Place PLC ($LSE:STJ)
St James’s Place PLC is a financial services group specialising in wealth management, pensions, retirement and protection planning based in the United Kingdom. The company has a market capitalization of 6.18 billion as of 2023, making it one of the largest companies in the U.K. Furthermore, it has a very impressive Return on Equity (ROE) of 20.35%, a measure of how efficiently a company is using its resources to generate profits. This indicates that St James’s Place is efficiently utilizing its resources to generate profits and is well positioned for future growth.
Summary
Investors are closely monitoring AVANTAX INC’s financial results for the second quarter of 2023. The company reported total revenue of USD 186.9 million, a decrease of 27.2% compared to last year’s quarter. Net income dropped to USD 3.6 million, a decrease of 90.9% from the same quarter in the previous year. Following the announcement, the stock price moved down significantly.
Analysts remain cautious and some say that this might be an opportunity for long-term investors to buy into the company. As the company is still expecting growth in the next year, investors should watch out for potential near-term catalysts that could support the performance of the stock.
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