Cano Health Stock Story

CANO
 Stock
  

USD 4.99  0.22  4.22%   

If you are looking to grow your portfolio over time, you may want to outline all of the essential basic indicators of your selected equities before buying their shares. In this article, we will outline Cano Health. We will look into reasons why it is still very possible for the company to generate above-average returns. Cano Health probability of distress is over 60 percent. Will institutional investors continue to be optimistic, or should we expect a sell-off in July?
Published over two months ago
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Are Cano Health (NYSE:CANO) conflicting basic indicators contributing to the latest slide?

Cano Health secures Sharpe Ratio (or Efficiency) of -0.094, which signifies that the company had -0.094% of return per unit of risk over the last 3 months. Macroaxis standpoint towards foreseeing the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Cano Health exposes twenty-seven different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Cano Health risk adjusted performance of (0.029807), and Mean Deviation of 4.46 to double-check the risk estimate we provide.
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 Cano Health income statement, its balance sheet, and the statement of cash flows. Potential Cano Health investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Cano Health investors may use each financial statement separately, they are all related. The changes in Cano Health's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Cano Health'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 Cano Health fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Cano Health performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Cano Health shares is the value that is considered the true value of the share. If the intrinsic value of Cano Health 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 Cano Health.
Please read more on our fundamental analysis page.

Are Cano Health Earnings Expected to grow?

The future earnings power of Cano Health involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Cano Health factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Cano Health 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 Cano Health expected earnings.

How does Cano Health utilize its cash?

To perform a cash flow analysis of Cano Health, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Cano Health is receiving and how much cash it distributes out in a given period. The Cano Health cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Cano Health Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (131.91 Million)

Cano Health Gross Profit

Cano Health Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cano Health 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 Cano Health Gross Profit growth over the last 10 years.
Please check Gross Profit in more details.

Acquisition by Camerlinck Robert of 250000 shares of Cano Health subject to Rule 16b-3

Legal trades by Cano Health 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:
Cano Health insider trading alert for grant of class a common stock by Camerlinck Robert, Chief Operating Officer, on 12th of August 2022. This event was filed by Cano Health Inc with SEC on 2022-08-12. 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.

Breaking it down a bit more

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Cano Health is not uncomon. Many companies such as Cano Health have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Cano Health is distributed among investors.

Ownership Allocation

Cano Health retains a total of 180.41 Million outstanding shares. The majority of Cano Health outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Cano Health to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Cano Health. Please pay attention to any change in the institutional holdings of Cano Health as this could imply that something significant has changed or about to change at the company. Also note that nearly three million six hundred eight thousand two hundred invesors are currently shorting Cano Health expressing very little confidence in its future performance.


Insiders
18.71%
Institutions
83.77%
Retail Investors-2.48
Insiders18.71
Institutions83.77

Asset Utilization

One of the ways to look at asset utilization of Cano Health is to check how much profit was generated for every dollar of assets it reports. Cano Health shows a negative utilization of assets of -6.66 percent, losing $0.0666 for each dollar of assets held by the firm. Inadequate asset utilization signifies that the company is being less effective with each dollar of assets it shows. Put another way, asset utilization of Cano Health shows how discouraging it operates for each dollar spent on its assets.


Assets Non Current
1.5 B
Goodwill
1.3 B
Current Assets265.61 Million8.85
Assets Non Current1.46 Billion48.56
Goodwill1.28 Billion42.59

Will Cano Health pull back in July 2022?

The value at risk is down to -8.94 as of today.
As of the 15th of June 2022, Cano Health shows the risk adjusted performance of (0.029807), and Mean Deviation of 4.46. Cano Health technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate nineteen technical drivers for Cano Health, which can be compared to its rivals. Please confirm Cano Health coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if Cano Health is priced correctly, providing market reflects its regular price of 4.83 per share. Given that Cano Health has jensen alpha of 0.0858, we suggest you to validate Cano Health's prevailing market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Whereas some other firms in the medical care facilities industry are either recovering or due for a correction, Cano Health may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 15th of June 2022, our present 90 days buy vs. sell advice on the company is Hold. We believe Cano Health is currently undervalued with above average chance of distress for the next two years.

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

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