Catabasis Story

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CATB -- USA Stock  

USD 6.29  0.28  4.66%

Catabasis Pharmaceuticals Average Assets are projected to increase significantly based on the last few years of reporting. The past year's Average Assets were at 47.16 Million. The current year Average Equity is expected to grow to about 45.1 M, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are forecasted to decline to (28.3 M). As some conservative investors are getting more into healthcare space, Catabasis Pharmaceuticals could be a your radar. We will analyze why Catabasis Pharmaceuticals investors may still consider a stake in the business. Here I will also go over some fundamental drivers that the firm investors should consider in September.
Published over a month ago
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Catabasis Pharmaceuticals (NASDAQ:CATB) continues to rise
This firm is undervalued at 14.64 per share with modest projections ahead. On a scale of 0 to 100, Catabasis Pharmaceuticals holds a performance score of 7. The firm shows a Beta (market volatility) of 0.6425, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Catabasis's beta means in this case. As returns on the market increase, Catabasis Pharmaceuticals returns are expected to increase less than the market. However, during the bear market, the loss on holding Catabasis Pharmaceuticals will be expected to be smaller as well. Although it is vital to follow Catabasis Pharmaceuticals historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Catabasis Pharmaceuticals technical indicators, you can presently evaluate if the expected return of 0.39% will be sustainable into the future. Please makes use of Catabasis Pharmaceuticals treynor ratio, as well as the relationship between the potential upside and expected short fall to make a quick decision on whether Catabasis Pharmaceuticals price patterns will revert.

How important is Catabasis Pharmaceuticals's Liquidity

Catabasis Pharmaceuticals financial leverage refers to using borrowed capital as a funding source to finance Catabasis Pharmaceuticals ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Catabasis Pharmaceuticals 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 Catabasis Pharmaceuticals's total debt and its cash.

How Catabasis utilizes its cash?

To perform a cash flow analysis of Catabasis Pharmaceuticals, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Catabasis Pharmaceuticals is receiving and how much cash it distributes out in a given period. The Catabasis Pharmaceuticals cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Catabasis Pharmaceuticals 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 (26.57 Million)

What did Catabasis Pharmaceuticals file with SEC?

The SEC filings are financial statements or other formal documents of Catabasis Pharmaceuticals that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database. Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Catabasis shareholders may or may not be submitted as SEC does not always require it.
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
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Financial Statements and Exhibits. Submission of Matters to a Vote of Security Holders. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
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Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Catabasis shareholders may or may not be submitted as SEC does not always require it.

Acquisition by Clauser Noah of 35000 shares of Catabasis Pharmaceuticals subject to Rule 16b-3

Legal trades by Catabasis Pharmaceuticals 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:
Catabasis insider trading alert for grant of stock option (right to buy) by Clauser Noah, Chief Financial Officer, on 21st of September 2020. This event was filed by Catabasis Pharmaceuticals with SEC on 2020-09-21. 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 down Catabasis Pharmaceuticals Further

Catabasis Pharmaceuticals holds a total of nineteen million eighty thousand outstanding shares. 30% of Catabasis Pharmaceuticals outstanding shares are owned by other corporate entities. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulation than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or about to change. Please note that no matter how much assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.
 2019 2020 (projected)
Interest Expense90 K92.37 K
Gross Profit450 K447.37 K

Ownership Breakdown

Retail Investors
58.56%
Institutions
40.87%
Retail Investors58.56
Insiders0.57
Institutions40.87

Over 3 percent rise for Catabasis Pharmaceuticals. What does it mean for investors?

Current maximum drawdown is at 14.95. Catabasis Pharmaceuticals shows above-average downside volatility for the selected time horizon. We advise investors to inspect Catabasis Pharmaceuticals further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Catabasis Pharmaceuticals future alpha.

Our Final Perspective on Catabasis Pharmaceuticals

Whereas few other entities under the biotechnology industry are still a bit expensive, Catabasis Pharmaceuticals may offer a potential longer-term growth to investors. To conclude, as of the 23rd of August 2020, we believe that at this point, Catabasis Pharmaceuticals is not too volatile with very small chance of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. Our ongoing 30 days buy-sell recommendation on the company is Hold.

About Contributor

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 Achuva Shats do not own shares of Catabasis Pharmaceuticals. Please refer to our Terms of Use for any information regarding our disclosure principles.

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