Biomerica Stock Story

BMRA -  USA Stock  

USD 3.69  0.06  1.60%

While some baby boomers are getting worried about healthcare space, it is reasonable to go over Biomerica. We will try to explain if it is still possible for Biomerica to generate above-average margins. Is the firm current valuation justified? We will cover Biomerica valuation to give you a better outlook on taking a position in the stock.
Published over three months ago
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Is Biomerica outlook positive for May 2021?
The company currently holds 1.68 M in liabilities with Debt to Equity (D/E) ratio of 0.15, which may suggest Biomerica is not taking enough advantage from borrowing. Biomerica has a current ratio of 6.25, suggesting that it is liquid enough and is able to pay its financial obligations when due.
The firm shows a Beta (market volatility) of 0.0602, which signifies not very significant fluctuations relative to the market. Let's try to break down what Biomerica's beta means in this case. As returns on the market increase, Biomerica returns are expected to increase less than the market. However, during the bear market, the loss on holding Biomerica will be expected to be smaller as well. Even though it is essential to pay attention to Biomerica historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Biomerica exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Biomerica has an expected return of -0.31%. Please be advised to confirm Biomerica downside variance, daily balance of power, and the relationship between the maximum drawdown and skewness to decide if Biomerica stock performance from the past will be repeated at some point in the near future.
We determine the current worth of Biomerica 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 Biomerica based exclusively on its fundamental and basic technical indicators. By analyzing Biomerica'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 Biomerica'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 Biomerica. We calculate exposure to Biomerica's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Biomerica's related companies.

Biomerica Investment Alerts

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

Biomerica Valuation Ratios as Compared to Competition

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

How Biomerica utilizes its cash?

To perform a cash flow analysis of Biomerica, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Biomerica is receiving and how much cash it distributes out in a given period. The Biomerica cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Biomerica Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (3.87 Million)

Biomerica exotic insider transaction detected

Legal trades by Biomerica insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Biomerica insider trading alert for general transaction of common stock by Francis Cano, the corporate stakeholder, on 1st of July 2021. This event was filed by Biomerica Inc with SEC on 2019-12-23. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Perspective

The entity reported the previous year's revenue of 6.42 M. Net Loss for the year was (4.48 M) with profit before overhead, payroll, taxes, and interest of 1.78 M.

Margins Breakdown

Biomerica profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Biomerica itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Biomerica profit margins.
EBITDA Margin(0.27)
Gross Margin0.26
Profit Margin(0.32)

Biomerica Earnings before Tax is somewhat stable at the moment. Further, Biomerica Average Assets is somewhat stable at the moment.

Is Biomerica growth trustworthy after the slip?

The jensen alpha is down to 0.12 as of today. Biomerica shows above-average downside volatility for the selected time horizon. We advise investors to inspect Biomerica further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Biomerica future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Biomerica'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 Biomerica'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.

Whereas other companies in the diagnostics & research industry are either recovering or due for a correction, Biomerica may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 13th of April 2021, we see that Biomerica barely shadows the market. The company is undervalued with very low odds of financial turmoil within the next 24 months. However, our latest 30 days buy-hold-sell recommendation on the company is Strong Sell.

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 Raphi Shpitalnik do not own shares of Biomerica. Please refer to our Terms of Use for any information regarding our disclosure principles.

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