What is November outlook for LivaNova PLC (NASDAQ:LIVN) given current volatility levels?

LivaNova PLC is currently generating 0.1604% in daily expected returns and assumes 2.9242% risk (volatility on return distribution) over the 90 days horizon. While some risk-seeking institutional investors are getting worried about healthcare space, it is reasonable to outline LivaNova PLC as a possible investment alternative. We will evaluate if the latest LivaNova PLC price volatility suggests a bounce in November.
Published over a year ago
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Reviewed by Michael Smolkin

LivaNova PLC currently holds roughly 232.55 M in cash with (198.78 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.78.
Volatility is a rate at which the price of LivaNova PLC 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 LivaNova PLC may increase or decrease. In other words, similar to LivaNova's beta indicator, it measures the risk of LivaNova PLC and helps estimate the fluctuations that may happen in a short period of time. So if prices of LivaNova PLC 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 LivaNova PLC's Liquidity

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

LivaNova PLC Volatility Drivers

LivaNova PLC unsystematic risk is unique to LivaNova PLC 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 LivaNova PLC you can also buy Guardant Health. 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 LivaNova PLC 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 LivaNova PLC income statement and balance sheet. Here are more details about LivaNova volatility.
0.680.930.990.440.940.520.390.890.86-0.570.220.13-0.43-0.73-0.74-0.670.56
0.680.80.70.060.660.550.170.610.6-0.840.03-0.01-0.14-0.58-0.54-0.530.75
0.930.80.950.290.910.680.540.880.88-0.660.150.13-0.37-0.63-0.6-0.570.78
0.990.70.950.440.910.530.490.910.88-0.570.260.21-0.38-0.73-0.71-0.660.61
0.440.060.290.440.39-0.350.320.270.210.170.24-0.13-0.2-0.21-0.23-0.140.12
0.940.660.910.910.390.60.330.80.78-0.6-0.02-0.02-0.36-0.66-0.65-0.610.53
0.520.550.680.53-0.350.60.280.540.59-0.71-0.290.31-0.2-0.4-0.36-0.410.45
0.390.170.540.490.320.330.280.510.560.090.420.3-0.16-0.08-0.020.00.54
0.890.610.880.910.270.80.540.510.99-0.50.250.17-0.47-0.63-0.63-0.550.59
0.860.60.880.880.210.780.590.560.99-0.480.240.18-0.52-0.59-0.59-0.510.63
-0.57-0.84-0.66-0.570.17-0.6-0.710.09-0.5-0.480.21-0.230.120.580.540.58-0.51
0.220.030.150.260.24-0.02-0.290.420.250.240.210.17-0.09-0.05-0.040.040.26
0.13-0.010.130.21-0.13-0.020.310.30.170.18-0.230.17-0.07-0.24-0.2-0.280.04
-0.43-0.14-0.37-0.38-0.2-0.36-0.2-0.16-0.47-0.520.12-0.09-0.070.160.280.06-0.33
-0.73-0.58-0.63-0.73-0.21-0.66-0.4-0.08-0.63-0.590.58-0.05-0.240.160.980.98-0.31
-0.74-0.54-0.6-0.71-0.23-0.65-0.36-0.02-0.63-0.590.54-0.04-0.20.280.980.95-0.3
-0.67-0.53-0.57-0.66-0.14-0.61-0.410.0-0.55-0.510.580.04-0.280.060.980.95-0.26
0.560.750.780.610.120.530.450.540.590.63-0.510.260.04-0.33-0.31-0.3-0.26
Click cells to compare fundamentals

Another angle On LivaNova PLC

The company reported the previous year's revenue of 980.8 M. Net Loss for the year was (160.71 M) with profit before overhead, payroll, taxes, and interest of 731.56 M.
 2017 2018 2019 2020 (projected)
Interest Expense7.8 M9.82 M15.09 M16.28 M
Gross Profit651.83 M734.47 M744.76 M667.88 M

Can LivaNova PLC build up on the latest rise?

Maximum drawdown is down to 14.96. It may entail a possible volatility slide. LivaNova PLC exhibits very low volatility with skewness of -0.56 and kurtosis of 3.26. However, we advise investors to further study LivaNova PLC technical indicators to make sure all market info is available and is reliable.

Our Final Take On LivaNova PLC

Whereas many other companies within the medical devices industry are still a little expensive, even after the recent corrections, LivaNova PLC may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view, we believe that right now is not a good time to increase your holdings in LivaNova. 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 LivaNova PLC.

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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 LivaNova PLC. Please refer to our Terms of Use for any information regarding our disclosure principles.

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