Will Lexicon Pharmaceuticals (NASDAQ:LXRX) current volatility spike continue?
 | By Raphi Shpitalnik | Macroaxis Story |
25% of stocks are less volatile than Lexicon, and 99% of all traded equity instruments are projected to make higher returns than the company over the 60 days investment horizon. As many investors are getting excited about healthcare space, it is fair to break down Lexicon Pharmaceuticals. We are going to inspect if the current expected returns justify Lexicon Pharmaceuticals' volatility.
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
Lexicon Pharmaceuticals currently holds roughly 201.87 M in cash with 97.97 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.88, which can makes it an attractive takeover target, given it will continue generating positive cash flow. Volatility is a rate at which the price of Lexicon Pharmaceuticals 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 Lexicon Pharmaceuticals may increase or decrease. In other words, similar to Lexicon's beta indicator, it measures the risk of Lexicon Pharmaceuticals and helps estimate the fluctuations that may happen in a short period of time. So if prices of Lexicon Pharmaceuticals 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 Lexicon Pharmaceuticals's Liquidity
Lexicon Pharmaceuticals financial leverage refers to using borrowed capital as a funding source to finance Lexicon Pharmaceuticals ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lexicon Pharmaceuticals 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 Lexicon Pharmaceuticals' 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 Lexicon Pharmaceuticals' 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 Lexicon Pharmaceuticals's total debt and its cash.
Lexicon Pharmaceuticals Gross Profit
Lexicon Pharmaceuticals Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Lexicon Pharmaceuticals 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 Lexicon Pharmaceuticals Gross Profit growth over the last 10 years. Please check Lexicon Pharmaceuticals' gross profit and other fundamental indicators for more details.
Lexicon Pharmaceuticals Volatility Drivers
Lexicon Pharmaceuticals unsystematic risk is unique to Lexicon Pharmaceuticals 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 Lexicon Pharmaceuticals you can also buy Immunitybio. 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 Lexicon Pharmaceuticals 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 Lexicon Pharmaceuticals income statement and balance sheet. Here are more details about Lexicon volatility.Click cells to compare fundamentals
A Deeper Perspective
This firm reported the previous year's revenue of 320.34 M. Net Income was 39.27 M with profit before overhead, payroll, taxes, and interest of 226.92 M.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial 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 Raphi Shpitalnik do not own shares of Lexicon Pharmaceuticals. Please refer to our Terms of Use for any information regarding our disclosure principles.