By examining the existing fundamental indicators between Trxade Group and BJs, we can assess the impact of market volatility on the prices of both companies. This analysis can also help determine if the combination of these companies in a single portfolio can help diversify away market risk. Pair trading strategies can also be utilized, such as matching a long position in BJs with a short position in Trxade Group. For more information, please refer to our
pair correlation module.
Let's start by analyzing the assets. The asset utilization indicator measures the revenue generated for every dollar of assets a company currently holds. Trxade Group has an asset utilization ratio of 308.58 percent, which suggests that the company generates $3.09 for each dollar of assets. An increasing asset utilization ratio indicates that Trxade Group is becoming more efficient in using each dollar of assets for its daily operations.
Main Ideas
Despite Trxade Group's (NASDAQ: MEDS) challenging financials with a net income reported as a loss of
$3.9M and an operating income also in the red at
$2.8M, there's potential for investors willing to take a risk. With shares outstanding at 1.25M and a significant 27.71% of those owned by insiders, this pharmaceutical retailer could echo BJ's Wholesale's price surge if it manages to leverage its current assets worth $1.12M and control its total debt of
$1.58M. However, investors should be cautious, considering its Z-Score of -3.95, which indicates a high probability of bankruptcy.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Trxade. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Trxade, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Trxade's Liquidity
Trxade
financial leverage refers to using borrowed capital as a funding source to finance Trxade Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Trxade 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 Trxade'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 Trxade'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 Trxade's total debt and its cash.
Is Trxade valued wisely 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
Let me now analyze Trxade revenue. Based on the latest financial disclosure, Trxade Group reported 11.45
M of revenue. This is 99.85% lower than that of the Consumer Staples Distribution & Retail sector and significantly higher than that of the
Consumer Staples industry.
The revenue for all United States stocks is 99.88% higher than that of Trxade. As for BJs Wholesale we see revenue of 19.32
B, which is much higher than that of the Consumer Staples
| MEDS | 11.45 Million | 0.0592 |
| Sector | 0.0 | 0.0 |
| BJ | 19.32 Billion | 99.94 |
Every cloud has a silver lining, and for Trxade Group (NASDAQ: MEDS), the potential upside of 7.09% could be that glimmer of hope. Despite the company's high probability of bankruptcy at 87.12%, and a net income loss of $3.9M, the pharmaceutical retailer's stock still holds potential. The company's shares are largely owned by insiders, at 27.71%, indicating a strong belief in the company's future from those closest to it. Furthermore, Trxade Group's current ratio of 1.32X suggests the company is in a decent position to cover its short-term liabilities. However, with a beta of 1.83, investors should be prepared for volatility. The question remains: can Trxade Group echo BJ's Wholesale's remarkable price surge? Only time will tell. .
Are Trxade technical indicators showing a correction?
The stock of Trxade Group is currently displaying some intriguing technical indicators. With the standard deviation dropping to 4.65, a potential decrease in volatility may be on the horizon. This decline in standard deviation implies that the stock's prices are becoming less dispersed, signaling a possible consolidation period. Investors should proceed with caution, as this could be a precursor to a market correction. A thorough analysis of other technical factors and the company's
fundamentals is recommended before making any investment decisions. Trxade Group exhibits very low volatility with a skewness of -0.11 and kurtosis of 0.48. However, we advise investors to further study Trxade Group's technical indicators to ensure all market information is available and reliable. Understanding different
market volatility trends often helps investors to time the market. Properly using volatility indicators enables traders to measure Trxade's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that accompanies bear markets can directly impact
Trxade's stock price, adding stress to investors as they watch their shares' value plummet. This typically forces investors to rebalance their portfolios by purchasing different stocks as prices fall.
Our Final Take On Trxade
Whereas some companies in the pharmaceutical retailers industry are either recovering or due for a correction, Trxade may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither acquire nor short any shares of Trxade at this time. The Trxade Group risk-reward trade off is not appealing enough to do any trading. 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 Trxade.
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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 Aina Ster do not own shares of Trxade Group. Please refer to our
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