Will Legend Biotech (NASDAQ:LEGN) shadow REMY COINTREAU price jump?

LEGN
 Stock
  

USD 40.05  0.86  2.10%   

Today we may see the proof that REMY COINTREAU would recover slower from the current slide as its shares fell 1.52% to Legend Biotech's 0.43%. As many rational traders are trying to avoid healthcare space, it makes sense to outline Legend Biotech Corp a little further and understand how it stands against REMY COINTREAU and other similar entities. We are going to inspect some of the competitive aspects of both Legend and REMYY.
Published over a week ago
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By analyzing existing technical and fundamental indicators between Legend Biotech and REMYY, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in REMYY with a short position in Legend Biotech. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
One of the ways to look at asset utilization of Legend is to check how much profit was generated for every dollar of assets it reports. Legend Biotech Corp secures a negative usage of assets of -27.62 %, losing $0.28 for each dollar of assets held by the firm. Inadequate asset utilization conveys that the company is being less effective with each dollar of assets it secures. Strictly speaking, asset utilization of Legend Biotech Corp shows how discouraging it operates for each dollar spent on its assets.

How important is Legend Biotech's Liquidity

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

How does Legend utilize its cash?

To perform a cash flow analysis of Legend Biotech, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Legend Biotech is receiving and how much cash it distributes out in a given period. The Legend Biotech cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

What is driving Legend Biotech Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Legend Biotech revenue. Based on the latest financial disclosure, Legend Biotech Corp reported 119 M of revenue. This is 98.44% lower than that of the Healthcare sector and 83.98% lower than that of the Biotechnology industry. The revenue for all United States stocks is 98.74% higher than that of Legend Biotech. As for REMY COINTREAU we see revenue of 1.31 B, which is 76.33% higher than that of the Biotechnology

Sector
742.9 M
REMYY
1.3 B
LEGN119 Million5.48
Sector742.91 Million34.21
REMYY1.31 Billion60.32

Legend Biotech has 98 percent chance to finish above $39 in October

The maximum drawdown is down to 20.85 as of today. Legend Biotech Corp exhibits very low volatility with skewness of -0.54 and kurtosis of 4.14. However, we advise investors to further study Legend Biotech Corp technical indicators to ensure that 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 Legend Biotech's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Legend Biotech'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.

Our Final Perspective on Legend Biotech

Whereas some other companies in the biotechnology industry are either recovering or due for a correction, Legend Biotech may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 22nd of September 2022, we believe that at this point, Legend Biotech is very steady with below average probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. However, our present 90 days buy-or-sell advice on the company is Strong Sell.

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 Gabriel Shpitalnik do not own shares of Legend Biotech Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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