This firm's average rating is Buy from 12 analysts. Macroaxis provides advice on Catalent to complement and cross-verify current
analyst consensus on Catalent. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. The company has Profit Margin (PM) of
4.79 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is normal as compared to the sector avarege. Similarly, it shows Operating Margin (OM) of
21.14 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.21.
The successful prediction of Catalent
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as Catalent, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of Catalent based on Catalent hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to Catalent's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Catalent's related companies.
Use Technical Analysis to project Catalent expected Price
Catalent technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Catalent technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Catalent trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...Catalent Gross Profit
Catalent Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Catalent 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 Catalent Gross Profit growth over the last 10 years. Please check Catalent's
gross profit and other
fundamental indicators for more details.
An Additional Perspective On Catalent
The company reported the previous year's revenue of 2.87
B. Net Income was 104.4
M with profit before overhead, payroll, taxes, and interest of 805.1
M.
Cost of Revenue Breakdown
Catalent Cost of Revenue yearly trend continues to be comparatively stable with very little volatility. Cost of Revenue will likely drop to about 1.8
B in 2020. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Catalent Cost of Revenue is comparatively stable at the moment as compared to the past year. Catalent reported Cost of Revenue of 1.97 Billion in 2019
| 2013 | 1.23 Billion |
| 2014 | 1.22 Billion |
| 2015 | 1.26 Billion |
| 2016 | 1.42 Billion |
| 2017 | 1.71 Billion |
| 2018 | 1.71 Billion |
| 2019 | 1.97 Billion |
| 2020 | 1.81 Billion |
Catalent has 77 percent chance to finish below $86 next week
Catalent newest mean deviation boosts over 1.71. Catalent currently demonstrates below-verage downside deviation. It has Information Ratio of 0.01 and Jensen Alpha of 0.11. However, we do advice investors to further question Catalent expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Our Bottom Line On Catalent
Whereas some firms in the drug manufacturers—specialty & generic industry are either recovering or due for a correction, Catalent may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Catalent valuation and our trade advice on Catalent is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Catalent.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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 Ellen Johnson do not own shares of Catalent. Please refer to our
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