Heska Story

HSKA -- USA Stock

USD 188.40 2.11 1.11%

Macroaxis Story

Heska Corp is scheduled to announce its earnings today. The next earnings report is expected on the 6th of May 2021. Heska Corp Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to increase significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 5.65 Million. The current year Average Equity is expected to grow to about 171.3 M, whereas Net Income Per Employee is forecasted to decline to (3.5 K). While some baby boomers are getting worried about healthcare space, it is reasonable to go over Heska Corp as an investment alternative. We will analyze why Heska Corp investors may still consider a stake in the business.

Published 3 days ago

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You think Heska Corp (NASDAQ:HSKA) debt is an issue for investors?

Heska Corp currently holds 58.58 M in liabilities with Debt to Equity (D/E) ratio of 0.21, which may suggest Heska Corp is not taking enough advantage from borrowing. On a scale of 0 to 100, Heska Corp holds a performance score of 18. The company retains a Market Volatility (i.e. Beta) of -0.0502, which attests to not very significant fluctuations relative to the market. Let's try to break down what Heska's beta means in this case. As returns on the market increase, returns on owning Heska Corp are expected to decrease at a much lower rate. During the bear market, Heska Corp is likely to outperform the market. Although it is vital to follow Heska Corp current price history, it is good to be conservative about what you can do with the information regarding equity current price movements. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-one technical indicators for Heska Corp, which you can use to evaluate the performance of the firm. Please utilizes Heska Corp treynor ratio, as well as the relationship between the potential upside and expected short fall to make a quick decision on whether Heska Corp current trending patterns will revert.

Heska Corp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Heska Corp, including all of Heska Corp's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Heska Corp assets, the company is considered highly leveraged. Understanding the composition and structure of overall Heska Corp debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.

Please read more on our technical analysis page.

Understanding Heska Total Debt

Heska Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Heska Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Heska Corp balance sheet include debt obligations and money owed to different Heska Corp vendors, workers, and loan providers. Below is the chart of Heska main long-term debt accounts currently reported on its balance sheet.

You can use Heska Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Heska Corp's Liquidity

Heska Corp financial leverage refers to using borrowed capital as a funding source to finance Heska Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Heska Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Heska Corp's total debt and its cash.

Exercise or conversion by Kevin Wilson of 5625 shares of Heska subject to Rule 16b-3

Legal trades by Heska Corp 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:

Heska insider trading alert for exercise of performance shares by Kevin Wilson, CEO and President, on 15th of January 2021. This event was filed by Heska Corp with SEC on 2021-01-15. 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 Heska Corp Indicators

The entity reported the previous year's revenue of 166.77 M. Net Loss for the year was (18.59 M) with profit before overhead, payroll, taxes, and interest of 54.45 M.

Asset Breakdown

100.4 M

Assets Non Current

59.2 M

Goodwill

173.5 M

Current Assets

	Total Assets	303.28 Million
	Current Assets	173.55 Million
	Assets Non Current	100.42 Million
	Goodwill	59.16 Million
	Tax Assets	5.94 Million

Our take on Heska Corp small slip

Current downside deviation is at 1.91. Heska Corp has relatively low volatility with skewness of 0.67 and kurtosis of 0.87. However, we advise all investors to independently investigate Heska Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

The Current Takeaway on Heska Corp Investment

Whereas some other entities in the diagnostics & research industry are either recovering or due for a correction, Heska Corp may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Heska valuation and our trade advice on Heska Corp 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 Heska Corp.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. 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 Raphi Shpitalnik do not own shares of Heska Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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