Will LianBio ADR (USA Stocks:LIAN) decline in November?
 | By Vlad Skutelnik | Macroaxis Story |
LianBio ADR currently holds $4.34 million in liabilities, with a Debt to Equity (D/E) ratio of 0.02. This suggests that LianBio ADR may not be leveraging debt effectively. The company's current ratio stands at 15.49, indicating that it has sufficient liquidity to meet its financial obligations when they are due.
Debt can be beneficial for LianBio ADR until it encounters difficulties in repayment, either through new capital or free cash flow. In such a scenario, LianBio ADR's shareholders could potentially lose their entire investment if the company fails to meet its legal debt repayment obligations. However, a more common scenario is when companies like LianBio ADR issue additional shares at low prices, diluting the value of existing shares. In this context, debt can be a more effective tool for LianBio to invest in high-return growth opportunities. When considering LianBio ADR's use of debt, it should always be evaluated in conjunction with cash and equity.
LianBio ADR has a performance score of 8 on a scale of zero to a hundred. The company has a Beta (Market Risk) of 3.7691, indicating a relatively high risk compared to the market. If the market rises, the company is expected to outperform it. Conversely, if the market performs poorly, LianBio ADR is likely to underperform.
While it's important to consider LianBio ADR's price patterns, it's also crucial to be realistic about what can be achieved with historical equity price patterns. Our approach to predicting the future performance of any stock involves a comprehensive analysis of the business, including all fundamental and technical indicators.
To determine if LianBio ADR's expected return of 1.74% will be sustainable in the future, we have identified twenty-one different technical indicators. These can help verify if the expected returns are sustainable. Use LianBio ADR's Jensen Alpha, and the relationship between the coefficient of variation and potential upside to analyze future returns on LianBio ADR.
Main Points
LianBio ADR, a prominent player in the Biotechnology industry, has been defying the market downturn with a robust advance, showcasing a commendable performance from a volatility viewpoint. The stock, which opened at $3.77, experienced a price change of $0.13, ending at a last price of $3.9. This translated to a price percent change of 3.45%. The stock also displayed a substantial trading volume of 5.7M today. From a risk perspective, LianBio ADR's Sortino Ratio of 0.45 indicates a satisfactory risk-adjusted return. The stock's downside variance of 16.02, against a standard deviation of 14.98, further underscores its ability to resist severe market downturns.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Michael Smolkin
Despite the recent market downturn, LianBio ADR (NASDAQ) has shown remarkable resilience, outperforming many of its peers in the Biotechnology industry. This robust advance is backed by a strong analyst consensus, with 1 Buy and 2 Strong Buys among the 3 estimates. The estimated target price ranges from $6 to a high of $15, with an average estimated value of $9.33, indicating potential for further growth. The company's real value stands at $5.09, surpassing its market value of $3.9 and hype value of $3.71. As we approach the fiscal year end in December, investors should keep a close eye on LianBio ADR, a promising player in the ADR home category. Most equities are considered less risky than LianBio, and the majority of traded equity instruments are projected to yield higher returns than the company over a 90-day investment horizon. Given the excitement many adventurous traders have for the biotechnology sector, it's only appropriate to review the risk of shorting LianBio ADR, particularly in light of its recent volatility spike. We will examine why this could be a unique year for LianBio ADR shareholders. The recent risk factors associated with LianBio may influence the stock's value, as we currently estimate LianBio ADR to be undervalued. The real value is approaching $5.09 per share.Volatility is a rate at which the price of LianBio ADR 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 LianBio ADR may increase or decrease. In other words, similar to LianBio's beta indicator, it measures the risk of LianBio ADR and helps estimate the fluctuations that may happen in a short period of time. So if prices of LianBio ADR 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 LianBio ADR's Liquidity
LianBio ADR financial leverage refers to using borrowed capital as a funding source to finance LianBio ADR ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. LianBio ADR 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 LianBio ADR'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 LianBio ADR'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 LianBio ADR's total debt and its cash.
Breaking down LianBio ADR Indicators
Net Loss for the year was (110.29 M) with profit before overhead, payroll, taxes, and interest of 0. As Benjamin Graham once said, in the short run, the market is a voting machine but in the long run, it is a weighing machine. LianBio ADR (NASDAQ) is a testament to this, defying the market downturn with a robust advance. Despite a high coefficient of variation at 890.69, indicating significant volatility, the biotech firm has managed to outperform. The company's risk-adjusted performance stands at 0.0763, suggesting that the stock's returns have adequately compensated for the volatility risk.Furthermore, LianBio's strong financial health is evident in its current ratio of 15.81X, indicating its ability to meet short-term obligations. The firm's market capitalization stands at $417.96M, with a significant 75.46% of shares owned by institutions, reflecting the market's confidence in the company. However, investors should be mindful of the company's 26.00% probability of bankruptcy and a downside deviation of 4, which could pose potential risks. Despite these, LianBio's robust advance in a downturn market is a clear demonstration of its resilience. .
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