Edesa Biotech is very risky given 1 month investment horizon.
Edesa Biotech secures Sharpe Ratio (or Efficiency) of 0.15, which denotes the company had 0.15% of return per unit of risk over the last month. Our standpoint towards predicting the volatility of a stock is to use
Edesa Biotech market data together with company specific
technical indicators. We were able to analyze twenty-eight different
technical indicators, which can help you to evaluate if expected returns of 2.7% are justified by taking the suggested risk. Use Edesa Biotech Downside Deviation of 7.32,
mean deviation of 8.81, and Coefficient Of Variation of 664.46 to evaluate company specific risk that cannot be
diversified away.
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 Edesa Biotech income statement, its balance sheet, and the statement of cash flows. Potential Edesa Biotech investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Edesa Biotech investors may use each financial statement separately, they are all related. The changes in Edesa Biotech's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Edesa Biotech'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 Edesa Biotech
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Edesa Biotech performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Edesa Biotech shares is the value that is considered the true value of the share. If
the intrinsic value of Edesa 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 Edesa Biotech. Please read more on our
fundamental analysis page.
How effective is Edesa Biotech in utilizing its assets?
Edesa Biotech reports assets on its Balance Sheet. It represents the amount of Edesa resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Edesa Biotech aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Biotechnology space. To get a better handle on how balance sheet or income statements item affect Edesa volatility, please check the breakdown of all its
fundamentals.
Are Edesa Biotech Earnings Expected to grow?
The
future earnings power of Edesa Biotech involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Edesa Biotech factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Edesa Biotech
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 Edesa
expected earnings.
Edesa Biotech Gross Profit
Edesa Biotech Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Edesa Biotech 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 Edesa Biotech Gross Profit growth over the last 10 years. Please check Edesa Biotech's
gross profit and other
fundamental indicators for more details.
Another Deeper Perspective
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 Edesa Biotech is not uncomon. Institutional investor usually refers to an organization that invests money in Edesa Biotech on behalf of clients or other money managers. Buying and selling of large positions of Edesa Biotech stock by institutional investors can create supply and demand imbalances that result in sudden price moves of Edesa Biotech stock. Let's take a look at how the ownership of Edesa is distributed among investors.
Ownership Allocation
Edesa Biotech retains a total of 9.41 Million outstanding shares. Edesa Biotech retains significant amount of outstanding shares owned by
insiders. An
insider is usually defined as a CEO, other corporate executive, director, or
institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Remember, it does not matter who owns the company or if the company is currently
losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.
| Retail Investors28.34% | Insiders46.77% | Institutions24.89% |
| Retail Investors | 28.34 |
| Insiders | 46.77 |
| Institutions | 24.89 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Edesa Biotech has an asset utilization ratio of 11.46 percent. This suggests that the company is making $0.11 for each dollar of assets. An increasing asset utilization means that Edesa Biotech is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets | 5.82 Million | 97.93 |
| Assets Non Current | 6,822.33 | 0.11 |
| Goodwill | 116,416 | 1.96 |
Will Edesa Biotech growth be real after the rise?
The treynor ratio is down to 2.05 as of today. Edesa Biotech is displaying above-average volatility over the selected time horizon. Investors should scrutinize Edesa Biotech independently to ensure intended market timing strategies are aligned with expectations about Edesa Biotech volatility.
Our Bottom Line On Edesa Biotech
Whereas few other entities within the biotechnology industry are still a little expensive, even after the recent corrections, Edesa Biotech may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither trade new shares of Edesa nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Edesa Biotech.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of Edesa Biotech. Please refer to our
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