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, eMagin's Probability of Financial Distress (%) is 3.34%.
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
For the Electronic Components subindustry, eMagin'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.
eMagin Probability of Financial Distress (%) Distribution
For the Hardware industry and Technology sector, eMagin's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where eMagin's Probability of Financial Distress (%) falls into.
eMagin 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 |
| = | -3.36 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 3.34% |
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).
eMagin Business Description
Traded in Other Exchanges
Address
700 South Drive, Suite 201, Hopewell Junction, NY, USA, 12533
eMagin Corp designs, develop, manufactures, and markets organic light-emitting diode, or OLED miniature displays, OLED-on-silicon microdisplays, virtual imaging products that utilize OLED micro displays, and related products. The company's OLED displays are used in a variety of products, including military aviation helmets, military weapons sights & targeting systems, night vision & thermal imaging devices, training & simulation, visualization for ocular surgery, mobile ultrasound, and augmented reality applications. Its geographical segments are North & South America; Europe, Middle East, & Africa; and the Asia Pacific.
Executives
| Cronson Paul C |
director |
C/O LARKSPUR CORP 445 PARK AVE NEW YORK NY 10022 |
| Wittels Jill |
director |
3006 NORTHUP WAY #103 BELLEVUE WA 98004 |
| Richstone Ellen B |
director |
C/O SONUS NETWORKS, INC. 7 TECHNOLOGY PARK DRIVE WESTFORD MA 01886 |
| Seay Stephen |
director |
10500 N.E. 8TH STREET, SUITE 1400 BELLEVUE WA 98004 |
| Sculley Andrew George Jr |
officer: President/CEO |
260 BRIAR DRIVE MARTINEZ CA 94553 |
| Braddom Eric |
director |
C/O EMAGIN CORPORATION 2070 ROUTE 52 BLDG 334 HOPEWELL JUNCTION NY 12533 |
| Koch Mark A |
officer: CFO |
C/O DEL GLOBAL TECHNOLOGIES CORP. ONE COMMERCE PARK VALHALLA NY 10595 |
| Awm Investment Company, Inc. |
10 percent owner |
527 MADISON AVENUE SUITE 2600 NEW YORK NY 10022 |
| Brody Christopher Scott |
director |
STILLWATER LLC 655 MADISON AVE NEW YORK NY 10065 |
| Costello Stephen |
officer: S V P Strategic Partnerships |
C/O EMAGIN CORPORATION 2070 ROUTE 52 BUILDING 334 HOPEWELL JUNCTION NY 12533 |
| Polgar Leslie G |
director |
3006 NORTHUP WAY SUITE 103 BELLEVUE WA 98004 |
| Saltarelli Joseph |
other: Sr. VP of Manufacturing |
C/O EMAGIN CORPORATION 2070 ROUTE 52 BLDG 334 HOPEWELL JUNCTION NY 12533 |
| Lucas Jeffrey P |
officer: Chief Financial Officer |
C/O EMAGIN CORP. 2070 ROUTE 52 HOPEWELL JUNCTION NY 12533 |
| Ghosh Amalkumar |
officer: Sr. VP, R&D |
2070 ROUTE 52 HOPEWELL JUNCTION NY 12533 |
| Olivier Prache |
officer: Sr. VP Product Development |
213 MANVILLE ROAD PLEASANTVILLE NY 10570 |
eMagin Headlines
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