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180 Degree Capital Corp (TURN)
NASDAQ:TURN
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180 Degree Capital
(NASDAQ:TURN)
Rating:52Neutral
Price Target:―
180 Degree Capital (TURN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.44M
Dividend YieldN/A
Average Volume (3M)22.18K
Price to Earnings (P/E)―
Beta (1Y)0.31
Revenue Growth38.38%
EPS Growth71.72%
CountryUS
Employees7
SectorFinancial
Sector Strength80
IndustryAsset Management
Share Statistics
EPS (TTM)-0.39
Shares Outstanding10,000,141
10 Day Avg. Volume26,129
30 Day Avg. Volume22,179
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.84
Price to Sales (P/S)0.00
P/FCF Ratio-15.64
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue148.57
Enterprise Value/Gross Profit557.30
Enterprise Value/Ebitda-3.67
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
180 Degree Capital Business Overview & Revenue Model
Company Description180 Degree Capital Corp. is a is a publicly owned hedge fund sponsor. The firm provides its services to pooled investment vehicles and pension and profit sharing plans. It also manages separate client-focused equity portfolios. The firm invests in public equity markets. It primarily invests in deep value stocks of small cap companies. The firm seeks to impact the business and valuation of its portfolio through constructive activism. It employs fundamental analysis, plan development, investment execution and exit analysis to make its portfolios. 180 Degree Capital Corp. was founded in 1981 and is based in Montclair, New Jersey.
How the Company Makes Money180 Degree Capital makes money through a combination of investment returns and management fees. The company's primary revenue stream comes from capital gains and dividends generated by its investments in small-cap public companies. By investing in undervalued or promising companies, 180 Degree Capital seeks to profit from the appreciation in stock prices and improvements in company performance. Additionally, the firm may earn interest income from any debt securities it holds. While 180 Degree Capital does not have traditional asset management fees like a mutual fund, it benefits from the increase in net asset value, which can enhance its market valuation. The company also focuses on strategic partnerships and actively engages with portfolio companies to drive growth and profitability, thereby potentially increasing its investment returns.
180 Degree Capital Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q3-2024)
| % Change Since: 1.72%|
Next Earnings Date:May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant opportunities for small-cap stock investments and notable successes such as Potbelly's performance and Arena's profitability. However, it also addressed challenges like the underperformance of recent years and specific stock declines due to transient issues.Q3-2024 Updates
Positive Updates
Small-Cap Stock Performance and Opportunities
The Russell Microcap Index has doubled the performance of the S&P 500 following rate cuts and election clarity, indicating significant opportunities for small-cap stocks.
Cost Reduction Initiatives
180 Degree Capital reduced operating expenses from $6.5 million to approximately $3 million, relocated offices to save costs, and changed regulatory structure to cut auditing and compliance costs.
Potbelly's Strong Performance
Potbelly reported a beat on all metrics and provided a positive outlook for 2025, resulting in a stock price increase from $7 to close to $11.
Brightcove's Market Reaction
Brightcove reported strong performance, leading to a significant positive market reaction, attributed to its debt-free balance sheet and cash-generative business.
Arena's Profitable Quarter
Arena reported its first profitable quarter, leading to a 250% increase in stock price, with 180 Degree Capital owning approximately 1 million shares.
Negative Updates
Underperformance of Recent Years
The last three years have been frustrating for 180 Degree Capital, with retraced gains and underperformance compared to the first five years.
Synchronoss Stock Decline
Despite a solid Q3 report, Synchronoss's stock declined 10-11% due to delays in tax refunds and investor expectations for AT&T contract renewal.
Lantronix's Transient Headwinds
Lantronix faced headwinds during Q3 '24 leading to a miss against estimates and a revision of full-year estimates, causing a reduction in position by approximately half.
Company Guidance
During the Q3 2024 earnings call for 180 Degree Capital Corp., executives Kevin Rendino and Daniel Wolfe provided guidance on several key metrics. They highlighted the positive performance of the Russell Microcap Index, which doubled the performance of the S&P 500 following recent economic and political developments. The company reduced its annual operating expenses from $6.5 million to approximately $3 million and moved to a more cost-effective office space. Despite not paying performance bonuses for the past two years due to unmet value creation goals, the management team emphasized its alignment with shareholders, collectively owning 13% of the company. Specific portfolio updates included Potbelly's strong metrics and stock performance, Synchronoss's solid Q3 results with revenue and EBITDA guidance increase, and Brightcove's robust financial standing. They also discussed strategic evaluations and capital base expansion efforts to enhance shareholder value and narrow the discount to net asset value.180 Degree Capital Financial Statement Overview
Summary
180 Degree Capital is navigating through financial instability with recent improvements in revenue overshadowed by continuous net losses. The strong equity position provides some buffer, yet the lack of consistent profitability and fluctuating cash flows remain key challenges. Strategic operational improvements are essential for financial health restoration.Income Statement
The income statement shows a volatile revenue trajectory with a recent increase from $54,993 to $348,341, indicating some recovery. However, the significant net losses in recent years, particularly a net loss of $3,866,158 in 2024, highlight ongoing profitability challenges. The absence of EBIT and EBITDA margins in the latest period further indicates operational difficulties.35
Negative
Balance Sheet
The balance sheet reflects a strong equity position with stockholders' equity at $46,352,002 against total liabilities of $1,258,058, resulting in a low leverage scenario. The debt-to-equity ratio is favorable due to minimal debt. However, the declining total assets from previous years may pose a risk to long-term stability.60
Neutral
Cash Flow
Cash flows indicate a worrying trend with declining operating cash flow over recent years, although a positive free cash flow of $269,933 in 2024 shows operational cash generation. The operating cash flow to net income ratio is skewed due to significant net losses, raising concerns about cash flow sustainability.45
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 129.30K | 348.34K | 54.99K | -42.16M | 20.54M | 5.10M |
| Gross Profit | 97.24K | 348.34K | -5.94M | -42.20M | 20.50M | 5.07M |
| EBITDA | -3.85M | 0.00 | -13.66M | -45.02M | -3.63M | 1.13M |
| Net Income | -17.17M | -3.87M | -13.67M | -45.03M | 14.26M | 1.10M |
Balance Sheet | ||||||
| Total Assets | 45.98M | 47.61M | 51.17M | 66.95M | 115.40M | 99.25M |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 552.10K | 282.17K | 655.46K | 4.16M | 11.50M |
| Total Debt | 17.98K | 0.00 | 36.08K | 72.63K | 109.68K | 10.11K |
| Total Liabilities | 934.36K | 1.26M | 952.79K | 1.41M | 575.55K | 735.26K |
| Stockholders Equity | 45.04M | 46.35M | 50.22M | 65.55M | 110.58M | 96.32M |
Cash Flow | ||||||
| Free Cash Flow | -376.40K | 269.93K | 1.28M | -3.50M | -7.35M | 134.44K |
| Operating Cash Flow | -376.40K | 269.93K | 1.29M | -3.50M | -7.34M | 140.42K |
| Investing Cash Flow | 923.81K | 0.00 | -3.72K | -4.23K | -10.39K | -5.97K |
| Financing Cash Flow | 0.00 | 0.00 | -1.66M | 0.00 | 0.00 | 0.00 |
180 Degree Capital Technical Analysis
Positive
4.14
Price Trends
3.99
Positive
3.92
Positive
3.74
Positive
Market Momentum
0.02
Negative
67.93
Neutral
69.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TURN, the sentiment is Positive. The current price of 4.14 is above the 20-day moving average (MA) of 3.98, above the 50-day MA of 3.99, and above the 200-day MA of 3.74, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 67.93 is Neutral, neither overbought nor oversold. The STOCH value of 69.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TURN.
180 Degree Capital Risk Analysis
180 Degree Capital disclosed 51 risk factors in its most recent earnings report. 180 Degree Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
180 Degree Capital Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $95.53M | 9.82 | 10.62% | 4.48% | 41.94% | 85.49% | |
70 Outperform | $54.11M | 5.50 | 13.04% | 6.65% | 134.64% | 35.26% | |
67 Neutral | $16.77B | 11.73 | 9.77% | 3.75% | 12.07% | -8.28% | |
52 Neutral | $41.44M | ― | -8.01% | ― | 38.38% | 71.72% | |
45 Neutral | $195.48M | ― | -9.96% | ― | 90.08% | -893.47% | |
45 Neutral | $34.10M | ― | -23.56% | ― | -6.70% | -229.81% | |
38 Underperform | $32.54M | ― | -11.19% | ― | -13.79% | 62.04% |
* Financial Sector Average
Performance Comparison
TURN
180 Degree Capital
4.14
0.49
13.42%
SSSS
SuRo Capital
8.30
4.39
112.28%
RAND
Rand Capital
17.44
1.09
6.67%
HNNA
Hennessy Advisors
12.27
5.10
71.13%
MGLD
Marygold Companies
0.80
-0.32
-28.57%
BCG
Binah Capital Group
1.96
-3.81
-66.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.