Is Concord Medical (NYSE:CCM) a new disruptor?


USD 1.51  0.01  0.66%   

Concord Medical Services current daily volatility is 4.48 percent, with a beta of 0.11 and an alpha of 0.29 over DOW. As many baby boomers are still indifferent towards current volatility, Concord Medical Services. We will look into some reasons why it is still possible for Concord Medical to maintain above-average margins while minimizing volatility.
Published over two months ago
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Concord Medical Services has roughly 157.39 M in cash with (359.31 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.62, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Investing in Concord Medical, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Concord Medical along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Concord Medical's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Concord Medical in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Concord Medical. Your research has to be compared to or analyzed against Concord Medical's peers to derive any actionable benefits. When done correctly, Concord Medical's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Concord Medical Services.

How important is Concord Medical's Liquidity

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

How does Concord utilize its cash?

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

Concord Medical Correlation with Peers

Investors in Concord can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Concord Medical Services. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Concord Medical and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Concord is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Concord for more details

Is Concord Medical valued accurately by the market?

Concord Medical appears to be dangerous, given 3 months investment horizon. Concord Medical Services secures Sharpe Ratio (or Efficiency) of 0.062, which signifies that the company had 0.062% 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. We have found twenty-one technical indicators for Concord Medical Services, which you can use to evaluate the future volatility of the firm. Please makes use of Concord Medical's Mean Deviation of 2.64, risk adjusted performance of 0.0869, and Downside Deviation of 5.69 to double-check if our risk estimates are consistent with your expectations.

Will Concord stakeholders quit after the next pull down?

Semi variance is down to 15.45. It may denote a possible volatility pull down. Concord Medical Services shows above-average downside volatility for the selected time horizon. We advise investors to inspect Concord Medical Services further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Concord Medical future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Concord Medical's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Concord Medical'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 Perspective on Concord Medical

While some firms under the medical care facilities industry are still a bit expensive, Concord Medical may offer a potential longer-term growth to stakeholders. The bottom line, as of the 9th of September 2022, we believe that at this point, Concord Medical is dangerous with close to average chance of distress within the next 2 years. From a slightly different point of view, the entity appears to be overvalued. Our actual 90 days 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 Concord Medical Services. Please refer to our Terms of Use for any information regarding our disclosure principles.

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