What is PowerFleet Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, PowerFleet's Probability of Financial Distress (%) is 0.04%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of PowerFleet's Probability of Financial Distress (%)
For the Communication Equipment subindustry, PowerFleet's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
PowerFleet's Probability of Financial Distress (%) Distribution in the Hardware Industry
For the Hardware industry and Technology sector, PowerFleet's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where PowerFleet's Probability of Financial Distress (%) falls into.
PowerFleet Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -7.90 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.04% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
PowerFleet (PowerFleet) Business Description
Traded in Other Exchanges
Address
123 Tice Boulevard, Suite 101, Woodcliff Lake, NJ, USA, 07677
PowerFleet Inc provides subscription-based wireless Internet-of-Things (IoT) and machine-to-machine (M2M) solutions for securing, controlling, tracking, and managing high-value enterprise assets such as industrial trucks, trailers, containers, cargo, light vehicles, and heavy truck fleets. The firm's systems utilize radio frequency identification, Wi-fi, satellite communications, and sensor technology to manage its assets. It operates in the segment of Wireless IoT asset management. The company has a business presence in the U. S, Israel, and other countries, of which key revenue is derived from the U.S.
Executives
| David Wilson |
officer: Chief Financial Officer |
|
| Michael J Casey |
director |
C/O MAPICS INC, 1000WINDWARD CONCOURSE PKWY STE.100, ALPHARETTA GA 30005 |
| Offer Lehmann |
officer: Chief Operating Officer |
C/O POWERFLEET, INC., 123 TICE BOULEVARD, WOODCLIFF LAKE NJ 07677 |
| Elchanan Maoz |
director |
11200 SW MURRAY SCHOLLS PLACE, BEAVERTON OR 97007 |
| Patrick John Maley |
officer: Chief Revenue Officer |
C/O POWERFLEET, INC., 123 TICE BOULEVARD, WOODCLIFF LAKE NJ 07677 |
| James Scott Zeitunian |
officer: Chief Technology Officer |
C/O POWERFLEET, INC., 123 TICE BOULEVARD, WOODCLIFF LAKE NJ 07677 |
| Joaquin Fong |
officer: See "Remarks" below |
C/O POWERFLEET, INC., 123 TICE BOULEVARD, WOODCLIFF LAKE NJ 07677 |
| Charles Frumberg |
director |
825 THIRD AVENUE, 33RD FLOOR, NEW YORK NY 10022 |
| Michael Brodsky |
director |
C/O NEW WORLD OPPORTUNITY PARTNERS I LLC, 1603 ORRINGTON AVE, STE 1600, EVANSTON IL 60201 |
| Steven Mark Towe |
director, officer: Chief Executive Officer |
C/O POWERFLEET, INC., 123 TICE BOULEVARD, WOODCLIFF LAKE NJ 07677 |
| Elizabeth Elkins |
officer: Chief Product Officer |
C/O POWERFLEET, INC., 123 TICE BLVD., WOODCLIFF LAKE NJ 07677 |
| David Mahlab |
director, officer: CEO International |
14 HA'MELACHA STREET, ROSH HA'AYIN L3 4809133 |
| Medhini Srinivasan |
director |
C/O POWERFLEET, INC., 123 TICE BLVD, WOODCLIFF LAKE NJ 07677 |
| Anders Bjork |
director |
C/O POWERFLEET, INC., 123 TICE BOULEVARD, WOODCLIFF LAKE NJ 07677 |
| Ned Mavrommatis |
officer: Chief Financial Officer |
C/O ID SYSTEMS INC, ONE UNIVERSITY PLAZA, HACKENSACK NJ 07601 |
PowerFleet (PowerFleet) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
PWFL has been successfully added to your