Enzo Biochem Story

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ENZ -- USA Stock  

USD 3.04  0.05  1.67%

While some of us are excited about healthcare space, it makes sense to break down Enzo Biochem in greater detail to make a better assessment of its actual value. We will analyze why it could be a much better year for Enzo Biochem shareholders. Is the firm valuation justified? Here we go over Enzo Biochem perspective on valuation to give you a better outlook on taking a position in this stock.
Published over three months ago
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Should I rely on Enzo Biochem management in November 2020?
Enzo Biochem has 33.78 M in debt with debt to equity (D/E) ratio of 0.54, which is OK given its current industry classification. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Enzo Biochem has an asset utilization ratio of 69.24 percent. This suggests that the company is making $0.69 for each dollar of assets. An increasing asset utilization means that Enzo Biochem is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Enzo Biochem using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Enzo Biochem based exclusively on its fundamental and basic technical indicators. By analyzing Enzo Biochem's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Enzo Biochem's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Enzo Biochem. We calculate exposure to Enzo Biochem's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Enzo Biochem's related companies.

Enzo Biochem Investment Alerts

Enzo Biochem investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Enzo Biochem performance across your portfolios.Please check all investment alerts for Enzo Biochem

Enzo Biochem Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Enzo Biochem value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Enzo Biochem competition to find correlations between indicators driving the intrinsic value of Enzo Biochem.

How Enzo Biochem utilizes its cash?

To perform a cash flow analysis of Enzo Biochem, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Enzo Biochem is receiving and how much cash it distributes out in a given period. The Enzo Biochem cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Enzo Biochem Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Enzo Biochem reported Net Cash Flow from Operations of (19.76 Million) in 2020

Acquisition by Ian Walters of 77101 shares of Enzo Biochem subject to Rule 16b-3

Legal trades by Enzo Biochem insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Enzo Biochem insider trading alert for grant of stock option (to acquire common stock) by Ian Walters, the corporate stakeholder, on 13th of January 2021. This event was filed by Enzo Biochem Inc with SEC on 2021-01-13. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Enzo Biochem Indicators

The current indifference towards the small price fluctuations of Enzo Biochem could raise concerns from investors as the firm it trading at a share price of 2.57 on slow start in volume. The company executives did not add any value to Enzo Biochem investors in September. However, most investors can still diversify their portfolios with Enzo Biochem to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.25. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Enzo Biochem partners.

Margins Breakdown

Enzo Biochem profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Enzo Biochem itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Enzo Biochem profit margins.
Operating Margin2.07
EBITDA Margin0.0683
Gross Margin0.32
Profit Margin0.0384

Enzo Biochem Net Income Per Employee is increasing over the last 8 years. The current value of Enzo Biochem Net Income Per Employee is 4,834. Moreover, Enzo Biochem Earnings Before Interest Taxes and Depreciation Amortization EBITDA is fairly stable at the moment.

Our take on today Enzo Biochem rise

Current Information Ratio is up to -0.09. Price may slide again. Enzo Biochem exhibits very low volatility with skewness of 0.15 and kurtosis of 0.12. However, we advise investors to further study Enzo Biochem technical indicators to make sure all market info is available and is reliable.

The Bottom Line

While some other firms within the diagnostics & research industry are still a little expensive, even after the recent corrections, Enzo Biochem may offer a potential longer-term growth to investors. In closing, as of the 13th of October 2020, our final 30 days Buy-Hold-Sell recommendation on the company is Strong Hold. We believe Enzo Biochem is currently undervalued with below average chance of financial distress for the next two years.

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 Achuva Shats do not own shares of Enzo Biochem. Please refer to our Terms of Use for any information regarding our disclosure principles.

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