Bellus Stock Story

BLU
 Stock
  

USD 11.11  0.18  1.59%   

The stock is currently undergoing a very aggressive trading activities. Bellus Health Tangible Assets Book Value per Share are comparatively stable at the moment as compared to the past year. Bellus Health reported Tangible Assets Book Value per Share of 3.95 in 2021. Net Cash Flow or Change in Cash and Cash Equivalents is likely to gain to about 108.3 M in 2022, whereas Earnings before Tax are likely to drop (73.3 M) in 2022. While some millenniums are indifferent towards healthcare space, it makes sense to review Bellus Health as a unique investment alternative. Let's break down the possibilities of Bellus Health maintaining its debt level in July.
Published over two months ago
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You think Bellus Health (NASDAQ:BLU) debt is an issue for private investors?

This firm has 871 K in debt with debt to equity (D/E) ratio of 0.0, which may show that Bellus Health is not taking advantage of profits from borrowing.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Bellus Health has an asset utilization ratio of 0.0407 percent. This implies that the company is making $4.07E-4 for each dollar of assets. An increasing asset utilization means that Bellus Health is more efficient with each dollar of assets it utilizes for everyday operations.
Bellus Health financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Bellus Health, including all of Bellus Health'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 Bellus Health assets, the company is considered highly leveraged. Understanding the composition and structure of overall Bellus Health 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 Bellus Total Liabilities

Bellus Health liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Bellus Health 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 Bellus Health balance sheet include debt obligations and money owed to different Bellus Health vendors, workers, and loan providers. Below is the chart of Bellus short long-term liabilities accounts currently reported on its balance sheet.
You can use Bellus Health financial leverage analysis tool to get a better grip on understanding its financial position

How important is Bellus Health's Liquidity

Bellus Health financial leverage refers to using borrowed capital as a funding source to finance Bellus Health ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bellus Health 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 Bellus Health'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 Bellus Health, but it might be worth checking our own buy vs. sell analysis

An Additional Perspective On Bellus Health

The newest price gain of Bellus Health could raise concerns from private investors as the firm is trading at a share price of 7.97 on 885,276 in volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in July. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.79. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the Bellus Health partners.

Asset Breakdown

Assets Non Current
278.6 M
Current Assets
Total Assets334.04 Million
Current Assets278.59 Million
Assets Non Current55.45 Million
Tax Assets1.14 Million

Bellus may start a correction in July

The kurtosis is down to 1.97 as of today. Bellus Health exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Bellus Health individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Bellus Health future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bellus Health'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 Bellus Health'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.

Bellus Health Implied Volatility

Bellus Health's implied volatility exposes the market's sentiment of Bellus Health stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Bellus Health'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 Bellus Health stock will not fluctuate a lot when Bellus Health's options are near their expiration.

The Current Takeaway on Bellus Health Investment

Whereas few other entities under the biotechnology industry are still a bit expensive, Bellus Health may offer a potential longer-term growth to private investors. While some private investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Bellus Health.

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 Bellus Health. Please refer to our Terms of Use for any information regarding our disclosure principles.

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