Many investors are eyeing small-cap stocks such as Snipp today. Snipp Interactive Inc. (TSXV: SPN)(SPN:APH)(SNIPF:US) has a market cap of CA 12.94 million.
Before making the move of investing in any company, it is important to assess its financial health. Today, we are going to do just that for Snipp.
Founded in 2007, Snipp was making a loss in March 2018 but things sort of improved in a few month’s time. This gave investors and on-lookers a reason to rejoice.
From March 2018 to the last 12 months, Snipp’s debt rose to US $2.00M in near-term debt. However, with the rise in debt, SPN had $2.66M (US) outstanding in cash and short-run investments, which were ready to be deployed in business.
Short Term Liabilities
Snipp’s Ability To Pay Liabilities
What makes it an interesting choice to invest in Snipp is that it has the ability to pay its short-term liabilities. It has a current liability of US $6.71M but with an asset level of $6.90M (US), it leads to a 1.03x in its current account ratio. This was enough to assess and realize that the company can pay its short-term liabilities easily.
It also indicates that Snipp has a decent cash buffer and can work its way without leaving a lot of capital in low return investments.
Therefore, when answering the question of why you should invest in Snipp, this is a key point to consider.
A Long Term Choice
Snipp is a mobile marketing firm based in Canada. Though Snipp’s stock dropped more than usual and has been sluggish this year, Snipp Interactive is more of a long-term stock to buy than a short-term stock.
Stock patterns indicate that Snipp has had a rise in its stock volume and though its stock may seem a little bearish, things have still been positive if we compare it on a year-to-year basis.
Overall, if we look at the reasons as to why you should invest in Snipp, there are three key things to remember:
- Snipp has had continuous revenue increase and it has had a growing backlog of increasing orders
- The company has worked progressively on decreasing its costs especially salaries and compensation
- Snipp has also worked on reducing general and administrative costs
Snipp also reportedly had a rise in its % of revenue increase with recurring components. Furthermore, its margins increased significantly in 2017 and its campaign size has continued to grow.
Snipp Interactive has given some people to doubt its significance but, Snipp, on the whole, still makes a very viable choice of investment.
