| 2019 | 2020 (projected) | Interest Expense | 450.41 K | 507.45 K | Gross Profit | 75.38 K | 77.36 K |
Is Anixa Biosciences (NASDAQ:ANIX) rise viable based on current volatility?
 | By Rifka Kats | Macroaxis Story |
Given the investment horizon of 60 days Anixa Biosciences is expected to generate 4.87 times more return on investment than the market. However, the company is 4.87 times more volatile than its market benchmark. It trades about 0.12 of its potential returns per unit of risk. The DOW is currently generating roughly 0.07 per unit of risk. While some risk-seeking investors are getting worried about healthcare space, it is reasonable to break down Anixa Biosciences as a possible investment alternative. We are going to inspect if the current expected returns justify Anixa Biosciences' volatility.
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Reviewed by Gabriel Shpitalnik
Anixa Biosciences currently holds about 9.07 M in cash with (6.1 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.38. On a scale of 0 to 100, Anixa Biosciences holds a performance score of 8. The firm shows a Beta (market volatility) of 1.0503, which signifies a somewhat significant risk relative to the market. Let's try to break down what Anixa's beta means in this case. Anixa Biosciences returns are very sensitive to returns on the market. As the market goes up or down, Anixa Biosciences is expected to follow. Although it is vital to follow Anixa Biosciences 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. We have found twenty-one technical indicators for Anixa Biosciences, which you can use to evaluate the performance of the firm. Please makes use of Anixa Biosciences semi deviation, jensen alpha, as well as the relationship between the Jensen Alpha and semi variance to make a quick decision on whether Anixa Biosciences price patterns will revert. Volatility is a rate at which the price of Anixa Biosciences or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Anixa Biosciences may increase or decrease. In other words, similar to Anixa's beta indicator, it measures the risk of Anixa Biosciences and helps estimate the fluctuations that may happen in a short period of time. So if prices of Anixa Biosciences fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Anixa Biosciences's Liquidity
Anixa Biosciences financial leverage refers to using borrowed capital as a funding source to finance Anixa Biosciences ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Anixa Biosciences 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. Financial leverage can amplify the potential profits to Anixa Biosciences' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Anixa Biosciences' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Anixa Biosciences's total debt and its cash.
Anixa Biosciences Gross Profit
Anixa Biosciences Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Anixa Biosciences 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 Anixa Biosciences Gross Profit growth over the last 10 years. Please check Anixa Biosciences' gross profit and other fundamental indicators for more details.
Anixa Biosciences Volatility Drivers
Anixa Biosciences unsystematic risk is unique to Anixa Biosciences and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Anixa Biosciences you can also buy Cue Biopharma. You can also mitigate this risk by investing in the health care sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Anixa Biosciences important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Anixa Biosciences income statement and balance sheet. Here are more details about Anixa volatility.Click cells to compare fundamentals
Breaking down the case for Anixa Biosciences
Net Loss for the year was (9.88 M) with profit before overhead, payroll, taxes, and interest of 83.75 K.
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