Kempharm Current Financial Leverage

KMPH -  USA Stock  

USD 10.75  0.24  2.18%

Kempharm's financial leverage is the degree to which the firm utilizes its fixed-income securities and uses equity to finance projects. Companies with high leverage are usually considered to be at financial risk. Kempharm's financial risk is the risk to Kempharm stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Please see the analysis of Kempharm Fundamentals Over Time.

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Kempharm Issuance Repayment of Debt Securities is most likely to in the upcoming years. The last year's value of Issuance Repayment of Debt Securities was reported at 2.82 Million

Kempharm Current Financial Burden

Kempharm's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Kempharm's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Kempharm Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Kempharm's stakeholders.

Asset vs Debt

Equity vs Debt

Given that Kempharm's debt-to-equity ratio measures a company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Kempharm is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Kempharm to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Kempharm is said to be less leveraged. If creditors hold a majority of Kempharm's assets, the company is said to be highly leveraged.

Kempharm Quarterly Debt to Equity Ratio

0.073Share
Given the importance of Kempharm's capital structure, the first step in the capital decision process is for the management of Kempharm to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of Kempharm to issue bonds at a reasonable cost.

Kempharm Financial Leverage Rating

Kempharm bond ratings play a critical role in determining how much Kempharm have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Kempharm's borrowing costs.
Overall Bond Rating
Not Rated
Average S&P Rating
N/A
Piotroski F Score
3  Frail
Beneish M Score

Kempharm Debt to Cash Allocation

As Kempharm follows its natural business cycle, the capital allocation decisions will not magically go away. Kempharm's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors. Many companies eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
The company currently holds 2.75 M in liabilities with Debt to Equity (D/E) ratio of 0.03, which may suggest the company is not taking enough advantage from borrowing. Kempharm has a current ratio of 20.29, suggesting that it is liquid enough and is able to pay its financial obligations when due.

Kempharm Total Assets Over Time

Kempharm Assets Financed by Debt

The debt-to-assets ratio shows the degree to which Kempharm uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.

Kempharm Debt Ratio

    
  612.68   
It seems as most of the Kempharm's assets are financed through debt. Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Kempharm's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Kempharm, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a Kempharm debt ratio should be compared their industry average or other competing firms.
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Kempharm Historical Liabilities

While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of Kempharm, understanding its historical liability is critical in projecting Kempharm's future earnings, especially during periods of low and high inflation and deflation. Many analysts look at the trend in assets and liabilities and evaluate how Kempharm uses its financing power over time.

Understaning Kempharm Use of Financial Leverage

Kempharm financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures Kempharm's total debt position, including all of outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Kempharm assets, the company is considered highly leveraged. Understanding the composition and structure of overall Kempharm debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it.
Please read more on our technical analysis page.
Last ReportedProjected for 2021
Total Debt70.4 M70.5 M
Debt Current717 K735.9 K
Debt Non Current69.6 M68.9 M
Issuance Repayment of Debt Securities2.8 M2.9 M
Debt to Equity Ratio(1.17) (1.26) 
KemPharm, Inc., a specialty pharmaceutical company, discovers and develops various proprietary prodrugs to treat serious medical conditions in the United States. The company was incorporated in 2006 and is headquartered in Celebration, Florida. Kempharm operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 22 people.

Kempharm Investors Sentiment

The influence of Kempharm's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Kempharm. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Current Sentiment - KMPH

Kempharm Investor Sentiment

Most of Macroaxis users are now bullish on Kempharm. What is your trading attitude regarding investing in Kempharm? Are you bullish or bearish?
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98% Bullish
2% Bearish
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Please see the analysis of Kempharm Fundamentals Over Time. Note that the Kempharm information on this page should be used as a complementary analysis to other Kempharm's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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When running Kempharm price analysis, check to measure Kempharm's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Kempharm is operating at the current time. Most of Kempharm's value examination focuses on studying past and present price action to predict the probability of Kempharm's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Kempharm's price. Additionally, you may evaluate how the addition of Kempharm to your portfolios can decrease your overall portfolio volatility.
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The market value of Kempharm is measured differently than its book value, which is the value of Kempharm that is recorded on the company's balance sheet. Investors also form their own opinion of Kempharm's value that differs from its market value or its book value, called intrinsic value, which is Kempharm's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Kempharm's market value can be influenced by many factors that don't directly affect Kempharm underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Kempharm's value and its price as these two are different measures arrived at by different means. Investors typically determine Kempharm value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kempharm's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.