Underpriced Stock: Boingo Wireless Inc. (WIFI) Undervalued by 52.9%

Publicly-traded company Boingo Wireless Inc. (NASDAQ:WIFI) had a closing price of $12.57 yesterday. Meanwhile, the average 12-month price target from Wall Street analysts is currently $26.69, this means that the stock is underpriced by 52.9%. In the past 52 weeks the company’s stock price has moved within the range of $8.85 to $26.67.

This particular stock’s 5-day moving average is 9.98, its 20-day moving average is 9.78 and its 100-day moving average is 13.38. Boingo Wireless Inc. (WIFI) currently has 45.01M shares outstanding, which means that its market capitalization is $565.78M.

The Details: Boingo Wireless Inc. (WIFI) Financial Health

There are a number of indicators we can consider when wondering about a potential stock’s financial health. Looking at a company’s profit margin, for example, tells us how much of its sales revenue it keeps in earnings – and it is calculated by taking net income and dividing it by net sales. WIFI currently has a profit margin of -1.90%.

Checking out a company’s operating margin is also useful, as it tells us how much profit is retained after considering operating costs and depreciation. Boingo Wireless Inc. (WIFI) has an operating margin of -1.70%.

Return on Assets is a number, expressed as a percentage that tells us how well a publicly-traded company is using its current assets to generate revenue. The higher the percentage, the better a company is using its assets to turn a profit. At the moment, Boingo Wireless Inc. Return on Assets is -0.90%.

What Does Wall Street Say about Company?

When choosing stocks, many investors search for what Wall Street professionals think about the company first – like what the average rating is. At the moment, the average analyst rating for WIFI is Buy. Out of 9 total analysts who were surveyed, 0 rated it a sell, 0 rated it a underweight, 0 rated it an overweight, 0 rated it hold, and 9 rated it a Buy.

Three months ago, on the other hand, the average analyst rating for Boingo Wireless Inc. (WIFI) was a Buy – from a survey of 9 analysts. Of the analysts who provided ratings, 0 rated the company a Hold, 1 rated it a Sell, 0 rated it an overweight, 0 rated it an underweight, and 8 rated it a Buy.

Understanding Profitability at Boingo Wireless Inc. (WIFI)

Taking a look at a public company’s Earnings per Share (EPS) is a good way of evaluating its profitability. In the most recent financial results released by Boingo Wireless Inc., for the quarter ending on 12/2019, the company posted EPS of -0.09. The average estimate of Wall Street analysts had projected -0.01.

Wall Street analysts, on average, are forecasting the company’s EPS to be -0.11, compared to 0.01 reported in the same quarter last year. When it comes to net revenue, the average estimate from a total of 9 analysts is 72.05M – compared to 67.81M posted in the year-ago period.