Accolade Stock Story

ACCD
 Stock
  

USD 11.53  0.28  2.37%   

Accolade is scheduled to announce its earnings today. The next financial report is expected on the 14th of July 2022. Accolade Average Equity is projected to increase significantly based on the last few years of reporting. The past year's Average Equity was at 703.79 Million. The current year Invested Capital is expected to grow to about 329.2 M, whereas Earnings before Tax are forecasted to decline to (132.2 M). As many baby boomers are still indifferent towards healthcare space, it makes sense to digest Accolade as a unique choice for millenniums. We will analyze why Accolade investors may still consider a stake in the business.
Published over a month ago
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Will Accolade (NASDAQ:ACCD) be in financial trouble before July?

Accolade currently holds 319.74 M in liabilities with Debt to Equity (D/E) ratio of 0.37, which is about average as compared to similar companies.
The firm shows a Beta (market volatility) of 3.2668, which signifies a somewhat significant risk relative to the market. Let's try to break down what Accolade's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Accolade will likely underperform. Even though it is essential to pay attention to Accolade historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy in foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Accolade exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Accolade has an expected return of -1.0%. Please be advised to confirm Accolade information ratio, treynor ratio, and the relationship between the downside deviation and total risk alpha to decide if Accolade performance from the past will be repeated at some point in the near future.
Accolade financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Accolade, including all of Accolade's 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 Accolade assets, the company is considered highly leveraged. Understanding the composition and structure of overall Accolade debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Accolade Total Liabilities

Accolade liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Accolade has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Accolade balance sheet include debt obligations and money owed to different Accolade vendors, workers, and loan providers. Below is the chart of Accolade short long-term liabilities accounts currently reported on its balance sheet.
You can use Accolade financial leverage analysis tool to get a better grip on understanding its financial position

How important is Accolade's Liquidity

Accolade financial leverage refers to using borrowed capital as a funding source to finance Accolade ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Accolade financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Accolade's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Accolade, but it might be worth checking our own buy vs. sell analysis

Is Accolade valued correctly by the market?

The entity reported the previous year's revenue of 310.02 M. Net Loss for the year was (123.12 M) with profit before overhead, payroll, taxes, and interest of 141 M.

Asset Breakdown

945.6 M
Assets Non Current
887.5 M
Goodwill
329.1 M
Current Assets
Total Assets1.39 Billion
Current Assets329.08 Million
Assets Non Current945.58 Million
Goodwill887.53 Million

Time to exit Accolade is now

The potential upside is down to 10.29 as of today. Accolade is displaying above-average volatility over the selected time horizon. Investors should scrutinize Accolade independently to ensure intended market timing strategies are aligned with expectations about Accolade volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Accolade's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Accolade's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Accolade Implied Volatility

Accolade's implied volatility exposes the market's sentiment of Accolade stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Accolade's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Accolade stock will not fluctuate a lot when Accolade's options are near their expiration.

The Current Takeaway on Accolade Investment

Although some firms in the health information services industry are either recovering or due for a correction, Accolade may not be performing as strong as the other in terms of long-term growth potentials. In closing, as of the 30th of June 2022, we believe that Accolade is currently undervalued with above average chance of bankruptcy in the next two years. Our overall 90 days buy-or-sell advice on the firm is Strong Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Accolade. Please refer to our Terms of Use for any information regarding our disclosure principles.

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