Is Integrated Media Technology a Good NFT Stock to Own?

Built-in Media Know-how (IMTE) is known for its glass-free 3D display screen technologies. Whilst the firm’s entry into the NFT room garnered substantial trader awareness, the inventory is at this time down far more than 60% in cost. So, let us appraise if it is worth betting on the inventory now. Go through on.

Headquartered in Hong Kong, Built-in Media Technological know-how Restricted (IMTE) develops, sells, and distributes 3D autostereoscopic display (ASD) technologies goods and companies in Hong Kong, China, Korea, Singapore, and Australia.

The stock surged much more than 30% in price in December when the firm announced a prepare to get a blockchain project. IMTE determined to “acquire more than” a beforehand agreed-on transaction with Hong Kong-centered Joint Financial commitment Constrained. According to the terms of the arrangement, Joint Investments and its previous associates will build a non-fungible token (NFT) investing platform based on blockchain technological know-how.

The stock is down 63.8% in price tag around the previous a few months and 61.2% about the previous month to near yesterday’s investing session at $4.37. In addition, the inventory is at the moment investing 88.6% under its 52-7 days substantial of $38.47, which it strike on April 01, 2022.

Below is what could shape IMTE’s functionality in the around expression:

Stretched Valuation

In phrases of trailing-12-months Price/Income, the inventory is at the moment trading at 28.79x, which is 724.7% bigger than the 3.49x industry average. Also, its 44.86x trailing-12-months EV/Product sales is 1129.6% larger than the 3.65x market common. On top of that, IMTE’s 6.76x trailing-12-months Rate/Ebook is 88% higher than the 3.58x marketplace typical.

Very poor Profitability

IMTE’s .09% trailing-12-months asset turnover ratio is 86.2% lessen than the .63% business common. Its trailing-12-months hard cash from operations stood at  destructive $5.45 million, versus the $90.61 million industry typical. Also, its trailing-12-months ROA, gross earnings margin, and ROC are detrimental 53.7%, 115.5%, and 32.4%, respectively.

POWR Ratings Replicate Bleak Outlook

IMTE has an over-all F score, which equates to a Potent Sell in our proprietary POWR Rankings technique. The POWR scores are calculated by considering 118 distinct elements, with every aspect weighted to an ideal degree.

Our proprietary ranking program also evaluates every stock primarily based on eight distinctive types. IMTE has an F quality for Price, Steadiness, and Good quality. The firm’s increased-than-market valuation is consistent with the Worth grade. In addition, the stock’s 2.74 beta is in sync with the Stability quality. Also, IMTE’s inadequate profitability justifies the High quality grade.

Of the 48 stocks in the C-rated Technological know-how – Electronics field, IMTE is ranked #43.

Beyond what I have stated over, one  can watch IMTE scores for Momentum, Excellent, and Sentiment here.

Base Line

IMTE has posted losses for the previous three decades, nevertheless it is trading at an high priced valuation provided its close to-phrase advancement prospects. In addition, the stock is currently trading underneath its 50-working day and 200-working day going common of $10.32 and $6.44, respectively, indicating bearish sentiment. As a result, we imagine the stock is best avoided now.

How Does Integrated Media Engineering Restricted (IMTE) Stack Up Against its Peers?

While IMTE has an overall F rating, a single could possibly want to take into account its sector friends, Wayside Technological innovation Group Inc. (WSTG) and Arrow Electronics Inc. (ARW), which have an in general A (Strong Get) ranking.

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IMTE shares rose $.23 (+5.26%) in premarket buying and selling Friday. 12 months-to-date, IMTE has declined -2.24%, vs . a -7.48% rise in the benchmark S&P 500 index during the identical period of time.

Pragya is an fairness research analyst and economical journalist with a enthusiasm for investing. In school she majored in finance and is presently pursuing the CFA application and is a Amount II prospect.