By analyzing existing fundamental indicators between Lucira Health and Global, 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 Global with a short position in Lucira Health. 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 Lucira is to check how much profit was generated for every dollar of assets it reports. Lucira Health secures a negative usage of assets of -27.89 %, 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 Lucira Health shows how discouraging it operates for each dollar spent on its assets.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Lucira or Western is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Lucira Health's Liquidity
Lucira Health
financial leverage refers to using borrowed capital as a funding source to finance Lucira Health ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lucira Health 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 Lucira Health'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 Lucira Health'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 Lucira Health's total debt and its cash.
Correlation Between Lucira and Western Metals
In general, Delisted Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Lucira Health together with similar or unrelated positions with a negative correlation. For example, you can also add Western Metals to your portfolio. If Western Metals is not perfectly correlated to Lucira Health it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Lucira Health, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Lucira Health and Western Metals in your portfolio? Please note if you are using this as a pair-trade strategy between Lucira Health and Western Metals, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between LHDX and WTLC for more information.
Is Lucira Health valued reasonably by the market?
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
Lets now take a look at Lucira Health revenue. Based on the latest financial disclosure, Lucira Health reported 4.79
M of revenue. This is 99.94% lower than that of the Healthcare sector and 99.76% lower than that of the
Diagnostics & Research industry. The revenue for all United States stocks is 99.95% higher than that of Lucira Health. As for Global Cord we see revenue of 1.16
B, which is 41.46% lower than that of the Diagnostics & Research
| LHDX | 4.79 Million | 0.15 |
| Sector | 1.98 Billion | 62.98 |
| CO | 1.16 Billion | 36.87 |
Our take on today Lucira Health rise
Current coefficient of variation indicator falls down to -729.32. Possible price jump? Lucira Health exhibits very low volatility with skewness of 0.16 and kurtosis of 1.13. However, we advise investors to further study Lucira Health 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 Lucira Health'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 Lucira Health'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.
Lucira Health Implied Volatility
Lucira Health's implied volatility exposes the market's sentiment of Lucira Health stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Lucira Health'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 Lucira Health stock will not fluctuate a lot when Lucira Health's options are near their expiration.
Our Takeaway on Lucira Health Investment
While some other companies under the diagnostics & research industry are still a bit expensive, Lucira Health may offer a potential longer-term growth to investors. To summarize, as of the 26th of November 2021, our research shows that Lucira Health is a rather moderately volatile investment opportunity with a
above average probability of distress in the next two years. From a slightly different view, the entity currently appears to be
fairly valued. However, our primary 90 days buy vs. sell advice on the company is
Strong Sell.
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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 Lucira Health. Please refer to our
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