Biomerica appears to be relatively risky, given 3 months investment horizon.
Biomerica secures Sharpe Ratio (or Efficiency) of 0.12, which signifies that the company had 0.12% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. By analyzing
Biomerica technical indicators you can presently evaluate if the expected return of 0.76% is justified by implied risk. Please makes use of Biomerica's Risk Adjusted Performance of 0.1135,
mean deviation of 3.88, and Downside Deviation of 4.46 to double-check if our risk estimates are consistent with your expectations.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Biomerica income statement, its balance sheet, and the statement of cash flows. Potential Biomerica investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Biomerica investors may use each financial statement separately, they are all related. The changes in Biomerica's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Biomerica's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Biomerica
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Biomerica performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Biomerica shares is the value that is considered the true value of the share. If
the intrinsic value of Biomerica is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Biomerica. Please read more on our
fundamental analysis page.
Watch out for price decline
Please consider monitoring Biomerica on a daily basis if you are holding a position in it. Biomerica 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 Biomerica stock to be traded above the $1 level to remain listed. If Biomerica 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.
How effective is Biomerica in utilizing its assets?
Biomerica reports assets on its Balance Sheet. It represents the amount of Biomerica resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Biomerica aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Health Care Equipment & Supplies space. To get a better handle on how balance sheet or income statements item affect Biomerica volatility, please check the breakdown of all its
fundamentals.
Are Biomerica Earnings Expected to grow?
The
future earnings power of Biomerica involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Biomerica factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Biomerica
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Biomerica
expected earnings.
Biomerica Gross Profit
Biomerica Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Biomerica 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 Biomerica Gross Profit growth over the last 10 years. Please check Biomerica's
gross profit and other
fundamental indicators for more details.
A Deeper Perspective
The current price rise of Biomerica could raise concerns from investors as the firm it trading at a share price of
5.54 on
877,039 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 6.56. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Biomerica partners.
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Biomerica has an asset utilization ratio of 128.34 percent. This suggests that the company is making $1.28 for each dollar of assets. An increasing asset utilization means that Biomerica is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets8.6 M | Assets Non Current3.2 M | | |
| Current Assets | 8.57 Million | 71.27 |
| Assets Non Current | 3.21 Million | 26.72 |
| Goodwill | 232,638 | 1.94 |
| Tax Assets | 9,236.84 | 0.0769 |
Our take on Biomerica small slip
The variance is down to 41.67 as of today. Biomerica is displaying above-average volatility over the selected time horizon. Investors should scrutinize Biomerica independently to ensure intended market timing strategies are aligned with expectations about Biomerica volatility. 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.
Our Final Take On Biomerica
Whereas many other companies in the diagnostics & research industry are either recovering or due for a correction, Biomerica may not be as strong as the others in terms of longer-term growth potentials. In closing, as of the 15th of October 2021, our concluding 90 days recommendation on the company is
Buy. We believe Biomerica is
undervalued with
very low chance of distress for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile 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
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