Anterix, headquartered in Woodland Park, New Jersey, specializes in commercializing 900 MHz spectrum for private broadband networks, primarily for utility and critical infrastructure customers. The company went public on February 3, 2015, and employs 86 people.
Based on our analysis, Anterix has received an overvalued rating of 1 out of 5 stars due to several concerning financial ratios that indicate underperformance relative to its sector.
The company's net profit margin stands at -188.56%, significantly worse than the sector average of -14.66%. A negative net profit margin indicates that the company is not generating profit from its revenues, and in Anterix's case, the extent of the loss is alarming. This suggests that operational inefficiencies and high costs are severely impacting profitability.
Furthermore, the return on equity (ROE) ratio for Anterix is -7.26%, compared to the sector average of -20.99%. Although Anterix's ROE is less negative than the sector, it still reflects the company's inability to generate returns on shareholder equity, indicating potential issues in management effectiveness or profitability.
Additionally, the return on assets (ROA) ratio for Anterix is -3.41%, while the sector average is -11.13%. While a less negative ROA may suggest better asset utilization, it still indicates that the company is failing to effectively use its assets to generate earnings.
These financial metrics raise red flags regarding Anterix's current valuation. The company’s higher price-to-book (PB) ratio of 4.34 versus the sector average of 2.18 also suggests that investors may be paying a premium for the stock without adequate justification based on its performance.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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