Aphria Story

APHA -  USA Stock  

USD 15.38  0.21  1.38%

While many traders are getting carried away by overanalyzing healthcare space, it is reasonable to go over Aphria Inc. We will check why this entity may not get much respect from investors given the current market uncertainty. Is the stock valuation sustainable? Here I will cover a perspective on valuation of Aphria to give you a better outlook on taking a position in this stock.
Published over a month ago
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Will Aphria (NYSE:APHA) price increase in May 2021?
This firm currently holds 434.04 M in liabilities with Debt to Equity (D/E) ratio of 0.28, which may suggest the entity is not taking enough advantage from borrowing. The company has a current ratio of 2.31, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Our trade advice tool can cross-verify current analyst consensus on Aphria Inc and to analyze the company potential to grow in the current economic cycle.
We determine the current worth of Aphria Inc 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 Aphria Inc based exclusively on its fundamental and basic technical indicators. By analyzing Aphria'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 Aphria'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 Aphria. We calculate exposure to Aphria's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Aphria's related companies.

Aphria Inc Investment Alerts

Aphria 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 Aphria Inc performance across your portfolios.Please check all investment alerts for Aphria

Aphria Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Aphria value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Aphria competition to find correlations between indicators driving the intrinsic value of Aphria.

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 Aphria, but it might be worth checking our own buy vs. sell analysis

What is the case for Aphria Investors

Aphria Inc reported the previous year's revenue of 477.1 M. Net Loss for the year was (173.48 M) with profit before overhead, payroll, taxes, and interest of 190.97 M.
 2018 2019 2020 2021 (projected)
Revenues USD176.95 M393.72 M452.78 M488.53 M
Revenues237.11 M543.34 M624.84 M674.17 M

Margins Breakdown

Aphria profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Aphria itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Aphria profit margins.
EBITDA Margin(0.008313)
Gross Margin0.45
Profit Margin(0.14)


Aphria Average Equity is increasing over the last 5 years. The current value of Aphria Average Equity is 1,819,379,153. Also, Aphria Earnings before Tax is somewhat stable at the moment.

Aphria may start a correction in May

Current downside deviation is at 8.58. Aphria Inc is displaying above-average volatility over the selected time horizon. Investors should scrutinize Aphria Inc independently to ensure intended market timing strategies are aligned with expectations about Aphria volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Aphria'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 Aphria'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.

Our Bottom Line On Aphria Inc

Whereas some firms within the drug manufacturers?specialty & generic industry are still a little expensive, even after the recent corrections, Aphria may offer a potential longer-term growth to investors. While some in two-three weeks oriented investors may not share our view, we believe it may not be a good time to buy new shares of Aphria.

About Contributor

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 Vlad Skutelnik do not own shares of Aphria Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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