Is BiodesixInc (USA Stocks:BDSX) ready for a correction?

Biodesix Inc. currently holds $31.85 million in liabilities, with a Debt to Equity (D/E) ratio of 3.2. This suggests that Biodesix Inc. heavily relies on financing its operations through borrowing. The company's current ratio stands at 0.63, indicating a negative working capital, which could potentially lead to difficulties in meeting its financial obligations when they are due. Debt can be beneficial for Biodesix Inc. as long as it can manage its repayments, either through raising new capital or generating free cash flow. However, if the company fails to meet its legal debt repayment obligations, shareholders could potentially lose their entire investment. It's also worth noting that companies like Biodesix Inc. often issue additional shares at discounted prices, which can dilute the value of existing shares. Despite the potential risks, debt can be a powerful tool for Biodesix Inc. to fund growth, particularly if it can achieve high rates of return on its investments. When considering Biodesix Inc.'s use of debt, it's important to also take into account its cash and equity positions. The asset utilization ratio is a measure of the revenue generated for every dollar of assets a company possesses. Biodesix Inc.'s asset utilization ratio is 41.13 percent, implying that the company generates $0.41 for each dollar of assets. An increasing asset utilization ratio indicates that Biodesix Inc. is becoming more efficient in using its assets for daily operations.

Rigorous look on BiodesixInc

Biodesix Inc. (BDSX) presents an interesting investment opportunity from a valuation perspective. With a current market capitalization of 120.67M, it appears to be undervalued when compared to its current valuation of 148.28M. This discrepancy could suggest a potential strategic market adjustment in the future. The company's financial health is also reflected in its net assets, which stand at 92.91M, further supporting the potential for growth. However, there are some concerns. The company's return on assets is at a loss of 0.42, indicating inefficiency in generating profits from its assets. Moreover, the company's operating margin is also in the negative territory at a loss of 1.24, which could be a result of its high selling and marketing expenses, totaling 61.5M. These losses may impact the company's ability to achieve a strategic market adjustment. Despite these challenges, the company's low debt to equity ratio of 3.20% and working capital of 30.5M suggest that it has a solid financial foundation to weather potential market downturns. Additionally, the low probability of bankruptcy at 96.00% also indicates a relatively low risk of financial distress in the short term. In conclusion, while Biodesix Inc. has some areas of concern, its undervaluation and strong financial position make it a potentially attractive investment opportunity. Investors should carefully consider these factors before making a decision.
Published over a year ago
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Reviewed by Rifka Kats

Biodesix Inc. (NASDAQ: BDSX), a key player in the Biotechnology sector, is currently under the financial microscope as market analysts assess its potential for a strategic market adjustment. The company's Enterprise Value to Revenue ratio stands at 3.2215, while its Operating Margin is at a loss of 1.24. Biodesix Inc. reported a net income loss of 65.4M, with an EBIT of -50.5M. Despite these figures, the company has seen a quarterly revenue growth of 0.084 and holds a promising Wall Street target price of 4.25. With 19.537% of its shares held by institutions, a short ratio of 1.82, and a 200-day moving average of 1.6572, Biodesix Inc. may be poised for a significant market adjustment. While many millennials are increasingly interested in the biotechnology sector, it's worthwhile to analyze Biodesix Inc. We aim to determine whether Biodesix Inc. can continue to generate above-average margins and if the company's valuation is sustainable. In this article, I will provide an overview of Biodesix Inc.'s valuation to give you a clearer perspective on whether to invest in this stock.
We determine the current worth of Biodesix 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 Biodesix based exclusively on its fundamental and basic technical indicators. By analyzing Biodesix'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 Biodesix'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 Biodesix. We calculate exposure to Biodesix's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Biodesix's related companies.

Watch out for price decline

Please consider monitoring Biodesix on a daily basis if you are holding a position in it. Biodesix is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Biodesix stock to be traded above the $1 level to remain listed. If Biodesix stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

Biodesix Investment Alerts

Biodesix 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 Biodesix performance across your portfolios.Please check all investment alerts for Biodesix

Biodesix Valuation Ratios as Compared to Competition

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

Biodesix Gross Profit

Biodesix Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Biodesix 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 Biodesix Gross Profit growth over the last 10 years. Please check Biodesix's gross profit and other fundamental indicators for more details.

Another Deeper Perspective

The current price rise of BiodesixInc could raise concerns from investors as the firm is trading at a share price of 1.71 on very low momentum in volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in November. The stock standard deviation of daily returns for 90 days investing horizon is currently 6.3. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the BiodesixInc partners.

Margins Breakdown

BiodesixInc profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or BiodesixInc itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of BiodesixInc profit margins.
EBITDA Margin(1.46)
Gross Margin0.59
Profit Margin(1.85)
BiodesixInc Earnings Before Interest Taxes and Depreciation Amortization USD is fairly stable at the moment. BiodesixInc Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 6 years. The previous year's value of BiodesixInc Earnings Before Interest Taxes and Depreciation Amortization USD was -52,887,079. Biodesix Inc. (NASDAQ: BDSX), a key player in the Diagnostics & Research industry, is currently under the microscope of investors.
The company's financial health is a concern, with a current ratio of 0.64X, indicating a potential liquidity issue. The company's net income stands at a loss of $65.4M, with an operating margin of -1.24, reflecting the company's struggle to generate profits. The company's earnings per share (EPS) estimate for the current year is a loss of $0.67, and it is expected to narrow down to a loss of $0.54 for the next year. The company's total revenue stands at $38.2M, with a revenue per share of $0.655. However, the company's free cash flow is in the negative territory, standing at a loss of $48.5M, which could be a concern for potential investors. Despite these challenges, Biodesix Inc. has a beta of 1.14, indicating a slightly higher market risk than the average stock. However, the company's market risk adjusted performance stands at a robust 1.93, suggesting that the company has been performing well when adjusted for its risk level. The company's stock is currently trading below its 52-week high of $2.53, and with a potential upside of 10.2, it could be poised for a strategic market adjustment. However, investors should be cautious, as the company has a significant number of shares shorted, standing at 143.87K. This could indicate a bearish sentiment among investors. .

Will BiodesixInc pull back in November 2023?

The current semi-variance of Biodesix Inc. is 31.95, indicating a significant level of volatility in the stock's returns. This measure of dispersion emphasizes the potential for negative price movements, which could imply a pullback in the near future. As we approach November 2023, investors should monitor the stock closely and consider the possibility of a price correction. While the semi-variance alone does not guarantee a pullback, it certainly increases the risk profile of the investment. As of October 23rd, Biodesix Inc. has a Mean Deviation of 4.72, a downside deviation of 6.19, and a Risk Adjusted Performance of 0.0808. The technical analysis of Biodesix Inc. provides a methodology to utilize historical prices and volume patterns to predict a pattern that approximates the direction of the company's future prices. In other words, this information can be used to determine if the company will mirror its model of historical prices and volume momentum, or if the prices will eventually revert.
We have been able to interpolate and collect nineteen technical drivers for Biodesix Inc., which can be compared to its competitors. Please verify Biodesix Inc.'s coefficient of variation, maximum drawdown, as well as the relationship between the Maximum Drawdown and skewness to decide if Biodesix Inc. is priced correctly, considering its regular price of 1.71 per share. Also, please double-check Biodesix Inc.'s total risk alpha, which currently stands at 1.89, to validate the company's sustainability in the future. In conclusion, despite the modest market slide, BiodesixInc (BDSX) has shown a slow but steady rise. The analyst overall consensus for BDSX is a 'Buy', with an estimated target price of $5. This is backed by one strong buy and one hold recommendation. The valuation market value stands at $1.71, slightly below the valuation real value of $2.46, indicating potential for growth. However, the valuation hype value of $1.76 suggests that investors should approach with caution. Given these factors, investors should consider BDSX as a potential addition to their portfolio, but with careful consideration of its performance towards the fiscal year end in December. .

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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 Ellen Johnson do not own shares of Biodesix. Please refer to our Terms of Use for any information regarding our disclosure principles.

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