Eargo Story

<div class='circular--portrait' style='background:#754DEB;color: #F0FFF0;font-size:3em;'>EAR</div>
EAR -- USA Stock  

USD 54.78  1.54  2.73%

In general, we focus on analyzing Eargo (NASDAQ:EAR) price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Eargo Inc daily price indicators and compare them against related drivers. Today's article will sum up Eargo. We will cover the possibilities of making Eargo into a steady grower in January.
Published over a month ago
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Will Eargo shareholders stop to drop in January?
One of the ways to look at asset utilization of Eargo is to check how much profit was generated for every dollar of assets it reports. Eargo Inc shows a negative utilization of assets of -36.42 percent, losing $0.36 for each dollar of assets held by the firm. Inadequate asset utilization denotes the company is being less effective with each dollar of assets it shows. Put another way, asset utilization of Eargo Inc shows how discouraging it operates for each dollar spent on its assets. The company has Net Profit Margin of (72.14) %, which means that it does not effectively control expenditures or properly executes on its pricing strategies. This is way below average. In the same way, it shows Net Operating Margin of (63.19) %, which entails that for every $100 of revenue, it lost -0.63.
The successful prediction of Eargo 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 Eargo Inc, 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 Eargo based on Eargo hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Eargo's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Eargo's related companies.

Use Technical Analysis to project Eargo expected Price

Eargo 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 Eargo technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Eargo 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...

How Eargo utilizes its cash?

To perform a cash flow analysis of Eargo, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Eargo is receiving and how much cash it distributes out in a given period. The Eargo cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Eargo Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Eargo reported last year Net Cash Flow from Operations of (35.2 Million)

A Deeper look at Eargo

This firm reported the last year's revenue of 57.39 M. Reported Net Loss for the year was (31.56 M) with profit before taxes, overhead, and interest of 17 M.

Deferred Revenue Breakdown

Eargo Deferred Revenue yearly trend continues to be relatively stable with very little volatility. Deferred Revenue is likely to drop to about 597.3 K. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Eargo Deferred Revenue is relatively stable at the moment as compared to the past year. Eargo reported last year Deferred Revenue of 675,000
2010
2019
2020
2010161,000
2019675,000
2020597,263

Eargo implied volatility may change after the spike

Latest coefficient of variation is at 357.61. Eargo Inc shows above-average downside volatility for the selected time horizon. We advise investors to inspect Eargo Inc further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Eargo future alpha.

Our Final Take On Eargo

While few other entities within the medical devices industry are still a little expensive, even after the recent corrections, Eargo may offer a potential longer-term growth to retail investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither acquire nor exit any shares of Eargo at this time. The Eargo Inc risk-reward trade off is not appealing enough to do any trading. 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 Eargo.

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

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