The company currently holds 101.78
M in liabilities with Debt to Equity (D/E) ratio of 0.99, which is about average as compared to similar companies. Adma Biologics has a current ratio of 5.3, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Adma Biologics until it has trouble settling it off, either with new capital or with free cash flow. So, Adma Biologics' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Adma Biologics sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Adma Biologics to invest in growth at high rates of return. When we think about Adma Biologics' use of debt, we should always consider it together with cash and equity.
On a scale of 0 to 100, Adma Biologics holds a
performance score of 6. The firm shows a Beta (market volatility) of 0.6245, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Adma Biologics's beta means in this case. As returns on the market increase, Adma Biologics returns are expected to increase less than the market. However, during the bear market, the loss on holding Adma Biologics will be expected to be smaller as well. Although it is vital to follow
Adma Biologics historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards foreseeing
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By analyzing
Adma Biologics technical indicators, you can presently evaluate if the expected return of 0.38% will be sustainable into the future. Please makes use of Adma Biologics
information ratio,
treynor ratio,
downside variance, as well as the
relationship between the
total risk alpha and
value at risk to make a quick decision on whether Adma Biologics
price patterns will revert.
We determine the current worth of ADMA Biologics using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of ADMA Biologics based exclusively on its
fundamental and basic
technical indicators. By analyzing ADMA Biologics's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of ADMA Biologics's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of ADMA Biologics. We calculate exposure to ADMA Biologics's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to ADMA Biologics's related companies.
ADMA Biologics Investment Alerts
ADMA investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring ADMA Biologics performance across your portfolios.Please check all
investment alerts for ADMA
ADMA Biologics Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare ADMA value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across ADMA Biologics competition to find
correlations between indicators driving the intrinsic value of ADMA.
ADMA Biologics Gross Profit
ADMA Biologics Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ADMA Biologics previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show ADMA Biologics Gross Profit growth over the last 10 years. Please check ADMA Biologics'
gross profit and other
fundamental indicators for more details.
Breaking it down
The entity reported the previous year's revenue of 68.52
M. Net Loss for the year was (74.41
M) with loss before overhead, payroll, taxes, and interest of (11.57
M).
Margins Breakdown
Adma Biologics profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Adma Biologics itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Adma Biologics profit margins.
| EBITDA Margin | (1.76) |
| Gross Margin | (0.42) |
| Profit Margin | (2.23) |
Adma Biologics Average Assets is somewhat stable at the moment. Further, Adma Biologics Average Equity is increasing over the last 8 years. Adma Biologics Average Assets is somewhat stable at the moment. Further, Adma Biologics Average Equity is somewhat stable at the moment.
Our take on today Adma Biologics rise
Current potential upside is at 6.82. Adma Biologics shows above-average downside volatility for the selected time horizon. We advise investors to inspect Adma Biologics further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Adma Biologics future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Adma Biologics' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Adma Biologics' 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.
Adma Biologics Implied Volatility
Adma Biologics' implied volatility exposes the market's sentiment of Adma Biologics stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Adma Biologics' 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 Adma Biologics stock will not fluctuate a lot when Adma Biologics' options are near their expiration.
Our Final Take On Adma Biologics
Whereas other entities within the biotechnology industry are still a little expensive, even after the recent corrections, Adma Biologics may offer a potential longer-term growth to investors. Taking everything into account, as of the 24th of March 2022, our primary 90 days buy vs. sell advice on the company is
Hold. We believe Adma Biologics is
undervalued with
very high chance of bankruptcy for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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 Raphi Shpitalnik do not own shares of ADMA Biologics. Please refer to our
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