IRIDEX Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:3em;'>IRI</div>
IRIX -- USA Stock  

USD 4.93  0.46  8.53%

In spite of fairly uncertain technical and fundamental indicators, IRIDEX may actually be approaching a critical reversion point that can send shares even higher in February 2021. The company current chance of distress is under 11 percent. Will investors continue to be optimistic, or should we expect a sell-off?
Published over a week ago
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Does IRIDEX (NASDAQ:IRIX) have strong technical and fundamental indicators based on the current rise?
IRIDEX holds a performance score of 12 on a scale of zero to a hundred. The company retains a Market Volatility (i.e. Beta) of 1.5617, which attests to a somewhat significant risk relative to the market. Let's try to break down what IRIDEX's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, IRIDEX will likely underperform. Although it is vital to follow IRIDEX current price history, it is good to be conservative about what you can do with the information regarding equity current price movements. Our philosophy in determining future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if IRIDEX expected return of 1.45 will be sustainable into the future, we have found twenty-seven different technical indicators, which can help you to check if the expected returns are sustainable. Use IRIDEX treynor ratio, as well as the relationship between the expected short fall and day median price to analyze future returns on IRIDEX.
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 IRIDEX income statement, its balance sheet, and the statement of cash flows. Potential IRIDEX investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although IRIDEX investors may use each financial statement separately, they are all related. The changes in IRIDEX's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on IRIDEX'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 IRIDEX fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of IRIDEX performance into the future periods or doing a reasonable stock valuation. The intrinsic value of IRIDEX shares is the value that is considered the true value of the share. If the intrinsic value IRIDEX 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 IRIDEX. Please read more on our fundamental analysis page.

What is IRIDEX Asset Breakdown?

IRIDEX reports assets on its Balance Sheet. It represents the amount of IRIDEX resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect IRIDEX volatility, please check the breakdown of all its fundamentals

Are IRIDEX Earnings Expected to grow?

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

IRIDEX Gross Profit

IRIDEX Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing IRIDEX 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 IRIDEX Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

Payment of tradable shares by Mercer Patrick of IRIDEX subject to Rule 16b-3

Legal trades by IRIDEX 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:
IRIDEX insider trading alert for payment of common stock by Mercer Patrick, COO, on 30th of December 2020. This event was filed by Iridex Corp with SEC on 2020-12-30. 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.

What is driving IRIDEX Investor Appetite?

IRIDEX reported the previous year's revenue of 35.8 M. Net Loss for the year was (7.71 M) with profit before overhead, payroll, taxes, and interest of 17.94 M.
 2016 2017 2020 2021 (projected)
Receivables Turnover4.794.735.515.95
PPandE Turnover35.0944.6840.3556.89

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. IRIDEX has an asset utilization ratio of 85.6 percent. This suggests that the company is making $0.86 for each dollar of assets. An increasing asset utilization means that IRIDEX is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
47.1 M
Current Assets47.1 Million76.07
Assets Non Current3.68 Million5.95
Goodwill681,4001.1
Tax Assets10.45 Million16.88

Another 3 percent rise for IRIDEX

IRIDEX current downside deviation rises over 4.86. As of the 12th of January 2021, IRIDEX retains the Risk Adjusted Performance of 0.136, market risk adjusted performance of 0.5152, and Semi Deviation of 4.02. IRIDEX technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for IRIDEX, which can be compared to its competitors. Please check out IRIDEX downside deviation, treynor ratio, as well as the relationship between the Treynor Ratio and expected short fall to decide if IRIDEX is priced correctly, providing market reflects its last-minute price of 4.13 per share. Given that IRIDEX has jensen alpha of 0.5996, we strongly advise you to confirm IRIDEX's regular market performance to make sure the company can sustain itself at some point in the future.

Our Final Takeaway

While some firms under the medical devices industry are still a bit expensive, IRIDEX may offer a potential longer-term growth to investors. On the whole, as of the 12th of January 2021, we believe IRIDEX is currently undervalued. It responds to the market and projects low odds of financial distress in the next two years. Our overall 30 days 'Buy-vs-Sell' recommendation on the company is Strong Hold.

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 IRIDEX. Please refer to our Terms of Use for any information regarding our disclosure principles.

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