Are Enanta Pharmaceutica (NASDAQ:ENTA) weak basic indicators contributing to the current slip?

Enanta Pharmaceutica Revenue Per Employee is projected to decrease significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 720,227. The current year Long Term Debt to Equity is expected to grow to 0.00051, whereas Net Income Per Employee is forecasted to decline to (601.5 K). Despite somewhat strong basic indicators, Enanta Pharmaceutica is not utilizing all of its potentials. The current stock price disturbance, may contribute to a short-term swings for the investors. Enanta Pharmaceutica responds to the market. We can now analyze Enanta as a potential investment option for your portfolios.
Published over a year ago
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Reviewed by Ellen Johnson

Our investment recommendation tool can be used to complement Enanta Pharmaceutica trade advice provided by experts. It analyzes the company's potential to grow against your specific risk preferences and investment horizon.
This firm dividends can provide a clue to the current value of the stock. Enanta Pharmaceutica is not expected to issue dividends this year as it is trying to preserve or re-invest any of the funds available for distribution to stakeholders.
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 Enanta Pharmaceuticals income statement, its balance sheet, and the statement of cash flows. Potential Enanta Pharmaceuticals investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Enanta Pharmaceuticals investors may use each financial statement separately, they are all related. The changes in Enanta Pharmaceuticals's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Enanta Pharmaceuticals'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 Enanta Pharmaceuticals fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Enanta Pharmaceuticals performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Enanta Pharmaceuticals shares is the value that is considered the true value of the share. If the intrinsic value of Enanta 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 Enanta Pharmaceuticals. Please read more on our fundamental analysis page.

How effective is Enanta Pharmaceuticals in utilizing its assets?

Enanta Pharmaceuticals reports assets on its Balance Sheet. It represents the amount of Enanta resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Enanta Pharmaceuticals 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 Enanta volatility, please check the breakdown of all its fundamentals.

Are Enanta Pharmaceuticals Earnings Expected to grow?

The future earnings power of Enanta Pharmaceuticals involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Enanta Pharmaceuticals factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Enanta Pharmaceuticals 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 Enanta expected earnings.

Enanta Pharmaceuticals Gross Profit

Enanta Pharmaceuticals Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Enanta Pharmaceuticals 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 Enanta Pharmaceuticals Gross Profit growth over the last 10 years. Please check Enanta Pharmaceuticals' gross profit and other fundamental indicators for more details.

Detailed Perspective On Enanta Pharmaceuticals

Institutional investors typically avoid acquiring a high percentage of Enanta Pharmaceutica stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Enanta is distributed among investors.

Ownership Allocation

Enanta Pharmaceutica retains a total of 20.32 Million outstanding shares. The majority of Enanta Pharmaceutica outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Enanta Pharmaceutica to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Enanta Pharmaceutica. Please pay attention to any change in the institutional holdings of Enanta Pharmaceutica as this could imply that something significant has changed or about to change at the company. Also note that almost eight hundred twelve thousand eight hundred invesors are currently shorting Enanta Pharmaceutica expressing very little confidence in its future performance.
Insiders
6.2%
Institutions
98.29%
Retail Investors-4.49
Insiders6.2
Institutions98.29

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Enanta Pharmaceutica has an asset utilization ratio of 31.72 percent. This suggests that the company is making $0.32 for each dollar of assets. An increasing asset utilization means that Enanta Pharmaceutica is more efficient with each dollar of assets it utilizes for everyday operations.
Current Assets
245.4 M
Assets Non Current
148.6 M
Current Assets245.42 Million55.75
Assets Non Current148.61 Million33.76
Tax Assets46.23 Million10.5

Will Enanta Pharmaceutica current rise continue?

Current treynor ratio indicator falls down to -0.46. Possible price jump? Enanta Pharmaceutica exhibits very low volatility with skewness of 0.28 and kurtosis of 0.68. However, we advise investors to further study Enanta Pharmaceutica technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Enanta Pharmaceutica'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 Enanta Pharmaceutica'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 Conclusion on Enanta Pharmaceutica

Whereas some other firms in the biotechnology industry are either recovering or due for a correction, Enanta may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 20th of November 2022, our analysis shows that Enanta Pharmaceutica responds to the market. The company is undervalued and projects very small odds of financial distress for the next 2 years. Our final 90 days buy vs. sell advice on the company is Hold.

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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 Aina Ster do not own shares of Enanta Pharmaceuticals. Please refer to our Terms of Use for any information regarding our disclosure principles.

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