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Zonko
Zonko
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How can a company trade at a market cap below its cash reserveson hand?

My question is general, but prompted by the current stock price of NASDAQ:CRTO (https://www.google.com/search?q=crto&tbm=fin). The company is currently trading at a market cap of less than 400M$ current value but the last earnings report shows 418.76M$ "cash on hand".enter image description here

Does it mean that anyone buying the company would make instant profit ? What sense does it even make to be valued below the cash you're sitting on ?

This is not even regarding the fact that the company is also generating money through its activity, and all the material assets they possess like servers & stuff.

Edit : the company has virtually no debt.

How can a company trade at a market cap below its cash reserves?

My question is general, but prompted by the current stock price of NASDAQ:CRTO (https://www.google.com/search?q=crto&tbm=fin). The company is currently trading at a market cap of less than 400M$ current value but the last earnings report shows 418.76M$ "cash on hand".enter image description here

Does it mean that anyone buying the company would make instant profit ? What sense does it even make to be valued below the cash you're sitting on ?

This is not even regarding the fact that the company is also generating money through its activity, and all the material assets they possess like servers & stuff.

How can a company trade at a market cap below its cash on hand?

My question is general, but prompted by the current stock price of NASDAQ:CRTO (https://www.google.com/search?q=crto&tbm=fin). The company is currently trading at a market cap of less than 400M$ current value but the last earnings report shows 418.76M$ "cash on hand".enter image description here

Does it mean that anyone buying the company would make instant profit ? What sense does it even make to be valued below the cash you're sitting on ?

This is not even regarding the fact that the company is also generating money through its activity, and all the material assets they possess like servers & stuff.

Edit : the company has virtually no debt.

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Zonko
Zonko
  • 271
  • 2
  • 6

My question is general, but prompted by the current stock price of NASDAQ:CRTO (https://www.google.com/search?q=crto&tbm=fin). The company is currently trading at a market cap of ~400M$,less than 400M$ current value but the last earnings report showshows 418.76M$ "cash aton hand".enter image description here

Does it mean that anyone buying the company would make instant profit ? What sense does it even make to be valued below the cash you're sitting on ?

This is not even regarding the fact that the company is also generating money through its activity, and all the material assets they possess like servers & stuff.

My question is general, but prompted by the current stock price of NASDAQ:CRTO (https://www.google.com/search?q=crto&tbm=fin). The company is currently trading at a market cap of ~400M$, but the last earnings report show 418.76M$ "cash at hand".

Does it mean that anyone buying the company would make instant profit ? What sense does it even make to be valued below the cash you're sitting on ?

This is not even regarding the fact that the company is also generating money through its activity, and all the material assets they possess like servers & stuff.

My question is general, but prompted by the current stock price of NASDAQ:CRTO (https://www.google.com/search?q=crto&tbm=fin). The company is currently trading at a market cap of less than 400M$ current value but the last earnings report shows 418.76M$ "cash on hand".enter image description here

Does it mean that anyone buying the company would make instant profit ? What sense does it even make to be valued below the cash you're sitting on ?

This is not even regarding the fact that the company is also generating money through its activity, and all the material assets they possess like servers & stuff.

Source Link
Zonko
Zonko
  • 271
  • 2
  • 6

How can a company trade at a market cap below its cash reserves?

My question is general, but prompted by the current stock price of NASDAQ:CRTO (https://www.google.com/search?q=crto&tbm=fin). The company is currently trading at a market cap of ~400M$, but the last earnings report show 418.76M$ "cash at hand".

Does it mean that anyone buying the company would make instant profit ? What sense does it even make to be valued below the cash you're sitting on ?

This is not even regarding the fact that the company is also generating money through its activity, and all the material assets they possess like servers & stuff.