Otelco Stock Price and Value Analysis

Should you buy Otelco stock? (NasdaqCM:OTEL). Let's see how it does in our automated value investing analysis system.

OTEL Free Cash Flow Trend

Free Cash Flow trendline for OTEL
Free Cash Flow trendline for Otelco

Based on historical returns, we believe that Otelco can grow its free cash at a rate of about 2%. That's positive!

AdvantagesDisadvantagesNeutral
None.
  • This company has wild ups and downs.
  • This company is making money at a modest rate.
  • This company is less known than others.
  • This stock looks overpriced.
  • This company pays no dividend.

Inside the OTEL Numbers

OTEL Price
(Otelco stock price per share)
$11.58
[?] OTEL Fair Price
(based on intrinsic value)
$5.48
[?] OTEL Safety Price (based on a variable margin of safety) $3.29
[?] PE Ratio versus Sector 64% lower than other Technology stocks
[?] PE Ratio versus Industry 0% lower than other Telecom Services stocks
[?] Free Cash Flow Jitter 53%

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 2,581 shares shorted. With 1,626,652 shares available for purchase and an average trading volume over the past 10 trading days of 6,557, it would take at least 0.394 days for all of the short holders to cover their shorts.

Is Otelco Stock on Sale?

We believe that Otelco may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Otelco looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy OTEL Stock?

Does Otelco have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.