The company currently holds 11.1
M in liabilities with Debt to Equity (D/E) ratio of 0.32, which is about average as compared to similar companies. LifeMD Inc has a current ratio of 0.7, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Debt can assist LifeMD until it has trouble settling it off, either with new capital or with free cash flow. So, LifeMD's 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 LifeMD Inc sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for LifeMD to invest in growth at high rates of return. When we think about LifeMD's use of debt, we should always consider it together with cash and equity.
Volatility is a rate at which the price of LifeMD or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of LifeMD may increase or decrease. In other words, similar to LifeMD's
beta indicator, it measures the risk of LifeMD and helps estimate the fluctuations that may happen in a short period of time. So if prices of LifeMD fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our
technical analysis page.
How important is LifeMD's Liquidity
LifeMD
financial leverage refers to using borrowed capital as a funding source to finance LifeMD Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. LifeMD 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. Financial leverage can amplify the potential profits to LifeMD's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of LifeMD's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between LifeMD's total debt and its cash.
LifeMD Gross Profit
LifeMD Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing LifeMD 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 LifeMD Gross Profit growth over the last 10 years. Please check LifeMD's
gross profit and other
fundamental indicators for more details.
LifeMD Volatility Drivers
LifeMD unsystematic risk is unique to LifeMD Inc and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in LifeMD you can also buy
Certara. You can also mitigate this risk by investing in the health care sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing LifeMD important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in LifeMD income statement and balance sheet. Here are more
details about LifeMD volatility.
Click cells to compare fundamentals
Breaking it down
The entity reported the previous year's revenue of 78.35
M. Net Loss for the year was (75.04
M) with profit before overhead, payroll, taxes, and interest of 28.39
M.
| 2019 | 2020 | 2021 | 2022 (projected) |
Interest Expense | 761.15 K | 1.67 M | 3.02 M | 3.26 M | Gross Profit | 9.94 M | 28.43 M | 74.88 M | 80.79 M |
Momentum Analysis of LifeMD suggests possible reversal in June
Latest variance is at 22.36.
As of the 12th of May 2022, LifeMD secures the
risk adjusted performance of
(0.23), and Mean Deviation of 3.58. In connection with
fundamental indicators, the
technical analysis model lets you check existing technical drivers of LifeMD Inc, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We have collected data for nineteen
technical drivers for LifeMD, which can be compared to its peers in the industry. Please verify
LifeMD Inc standard deviation,
value at risk,
kurtosis, as well as the
relationship between the
jensen alpha and
semi variance to decide if LifeMD Inc is priced some-what accurately, providing market reflects its recent price of 1.94 per share. Please also check out LifeMD
total risk alpha, which is currently at
(0.24) to check the company can sustain itself at a future point.
Our Bottom Line On LifeMD Inc
Although many of the other players within the pharmaceutical retailers industry are still a little expensive, even after the recent corrections, LifeMD may offer a potential longer-term growth to shareholders. To conclude, as of the 12th of May 2022, we believe that at this point, LifeMD is
undervalued with
average odds of financial turmoil within the next 2 years. Our up-to-date buy vs. sell advice on the firm is
Hold.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of LifeMD Inc. Please refer to our
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