Kiora Stock Story

KPRX
 Stock
  

USD 0.13  0.01  7.14%   

Kiora Pharmaceuticals is scheduled to announce its earnings tomorrow. Kiora Pharmaceuticals Price to Sales Ratio is fairly stable at the moment as compared to the past year. Kiora Pharmaceuticals reported Price to Sales Ratio of 2,151 in 2021. Return on Invested Capital is likely to rise to 124.42 in 2022, whereas Average Assets are likely to drop slightly above 16.8 M in 2022. As many millenniums are trying to avoid healthcare space, it makes sense to break down Kiora Pharmaceuticals a little further and try to understand its current market patterns.
Published over a month ago
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Should I hold on to my Kiora (NASDAQ:KPRX) position?

The company currently holds 209.41 K in liabilities with Debt to Equity (D/E) ratio of 0.02, which may suggest Kiora Pharmaceuticals is not taking enough advantage from borrowing. Kiora Pharmaceuticals has a current ratio of 5.48, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Kiora Pharmaceuticals until it has trouble settling it off, either with new capital or with free cash flow. So, Kiora Pharmaceuticals' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Kiora Pharmaceuticals sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Kiora to invest in growth at high rates of return. When we think about Kiora Pharmaceuticals' use of debt, we should always consider it together with cash and equity.
Kiora Pharmaceuticals financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Kiora Pharmaceuticals, including all of Kiora Pharmaceuticals'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 Kiora Pharmaceuticals assets, the company is considered highly leveraged. Understanding the composition and structure of overall Kiora Pharmaceuticals 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.

Watch out for price decline

Please consider monitoring Kiora Pharmaceuticals on a daily basis if you are holding a position in it. Kiora Pharmaceuticals is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Kiora Pharmaceuticals stock to be traded above the $1 level to remain listed. If Kiora Pharmaceuticals stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

Understanding Kiora Total Debt

Kiora Pharmaceuticals liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Kiora Pharmaceuticals 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 Kiora Pharmaceuticals balance sheet include debt obligations and money owed to different Kiora Pharmaceuticals vendors, workers, and loan providers. Below is the chart of Kiora main long-term debt accounts currently reported on its balance sheet.
You can use Kiora Pharmaceuticals financial leverage analysis tool to get a better grip on understanding its financial position

How important is Kiora Pharmaceuticals's Liquidity

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

Payment of 108 shares by Romano Sarah of Kiora Pharmaceuticals subject to Rule 16b-3

Legal trades by Kiora Pharmaceuticals 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:
Kiora insider trading alert for payment of common stock by Romano Sarah, Chief Financial Officer, on 11th of February 2022. This event was filed by Kiora Pharmaceuticals Inc with SEC on 2022-02-11. 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.

A Deeper Perspective

The entity reported the previous year's revenue of 12.06 K. Net Loss for the year was (16.39 M) with loss before overhead, payroll, taxes, and interest of (5.35 M).

Liabilities Breakdown

Current Liabilities
10.8 M
Long-Term Liabilities
Total Liabilities12.77 Million
Current Liabilities1.65 Million
Long-Term Liabilities10.83 Million

Will Kiora Pharmaceuticals growth be viable after the rise?

The maximum drawdown is down to 45.83 as of today. Kiora Pharmaceuticals is displaying above-average volatility over the selected time horizon. Investors should scrutinize Kiora Pharmaceuticals independently to ensure intended market timing strategies are aligned with expectations about Kiora Pharmaceuticals volatility. Kiora Pharmaceuticals is a potential penny stock. Although Kiora Pharmaceuticals may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Kiora Pharmaceuticals. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Kiora instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Final Takeaway

While some companies in the biotechnology industry are either recovering or due for a correction, Kiora Pharmaceuticals may not be performing as strong as the other in terms of long-term growth potentials. While some investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 Kiora Pharmaceuticals.

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 Vlad Skutelnik do not own shares of Kiora Pharmaceuticals. Please refer to our Terms of Use for any information regarding our disclosure principles.

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