Kamada Stock Story

KMDA
 Stock
  

USD 5.32  0.15  2.90%   

Lets try to go over the odds of Kamada to fully recover from the current slip as its shares went up 3.79%. This firm current daily volatility is 2.17 percent, with a beta of 0.63 and an alpha of -0.28 over DOW. As many investors are getting excited about pharmaceutical products, it is fair to go over Kamada. We will evaluate why recent Kamada price moves suggest a bounce in June.
Published over two months ago
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Is Kamada (NASDAQ:KMDA) a new disruptor?

Kamada currently holds roughly 99.84 M in cash with 8.9 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.36.
The company secures a Beta (Market Risk) of 0.6295, which conveys possible diversification benefits within a given portfolio. Let's try to break down what Kamada's beta means in this case. As returns on the market increase, Kamada returns are expected to increase less than the market. However, during the bear market, the loss on holding Kamada will be expected to be smaller as well. Even though it is essential to pay attention to Kamada price patterns, it is always good to be careful when utilizing equity historical price patterns. Our philosophy towards estimating any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Kamada exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Kamada has an expected return of -0.32%. Please be advised to verify Kamada maximum drawdown, semi variance, and the relationship between the sortino ratio and potential upside to decide if Kamada performance from the past will be repeated at some point in the near future.
Investing in Kamada, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Kamada along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Kamada's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Kamada in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Kamada. Your research has to be compared to or analyzed against Kamada's peers to derive any actionable benefits. When done correctly, Kamada's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Kamada.

How important is Kamada's Liquidity

Kamada financial leverage refers to using borrowed capital as a funding source to finance Kamada ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Kamada 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 Kamada's total debt and its cash.

How does Kamada utilize its cash?

To perform a cash flow analysis of Kamada, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Kamada is receiving and how much cash it distributes out in a given period. The Kamada cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Kamada Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (8.82 Million)

Kamada Correlation with Peers

Investors in Kamada can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Kamada. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Kamada and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Kamada is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Kamada for more details

Is Kamada valued fairly by the market?

Kamada has Sharpe Ratio of -0.15, which conveys that the firm had -0.15% of return per unit of risk over the last 3 months. Macroaxis standpoint towards estimating the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Kamada exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to verify Kamada risk adjusted performance of (0.21), and Mean Deviation of 1.56 to check out the risk estimate we provide.
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0.31-0.28
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0.31-0.78
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Are Kamada technical ratios showing a reversion?

The value at risk is down to -3.39 as of today. Kamada exhibits very low volatility with skewness of -0.17 and kurtosis of 0.78. However, we advise investors to further study Kamada technical indicators to make sure 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 Kamada's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Kamada'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.

Kamada Implied Volatility

Kamada's implied volatility exposes the market's sentiment of Kamada stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Kamada's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Kamada stock will not fluctuate a lot when Kamada's options are near their expiration.

The Bottom Line

Whereas many of the other players in the drug manufacturers—specialty & generic industry are either recovering or due for a correction, Kamada may not be as strong as the others in terms of longer-term growth potentials. While some investors may not share our view, we believe it may be a good time to increase your existing holdings in Kamada as the risk-reward trade off is appealing enough to hold a position. 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 Kamada.

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 Raphi Shpitalnik do not own shares of Kamada. Please refer to our Terms of Use for any information regarding our disclosure principles.

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