Neptune Story

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NEPT -- USA Stock  

USD 2.15  0.01  0.46%

As many rational traders are trying to avoid healthcare space, it makes sense to review Neptune Wellness Solutions a little further and understand how it stands against Eagle Pharmaceuticals and other similar entities. We are going to break down some of the competitive aspects of both Neptune and Eagle.
Published over a month ago
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Is Neptune riskier than Eagle Pharmaceuticals (NASDAQ:EGRX)?
By analyzing existing basic indicators between Neptune Wellness and Eagle, 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 Eagle with a short position in Neptune Wellness. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Neptune Wellness has an asset utilization ratio of 18.83 percent. This implies that the company is making $0.19 for each dollar of assets. An increasing asset utilization means that Neptune Wellness Solutions is more efficient with each dollar of assets it utilizes for everyday operations.
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 companies, such as Neptune or DURECT is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Neptune Wellness's Liquidity

Neptune Wellness financial leverage refers to using borrowed capital as a funding source to finance Neptune Wellness Solutions ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Neptune Wellness 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. Please check the breakdown between Neptune Wellness's total debt and its cash.

Correlation Between Neptune and DURECT

In general, 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 Neptune Wellness together with similar or unrelated positions with a negative correlation. For example, you can also add DURECT to your portfolio. If DURECT is not perfectly correlated to Neptune Wellness 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 Neptune Wellness for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between NEPT and DRRX for more information.


Are you currently holding both Neptune Wellness and DURECT in your portfolio? Please note if you are using this as a pair-trade strategy between Neptune Wellness and DURECT, 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.

Detailed Outlook On Neptune Wellness

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 check Neptune Wellness revenue. Based on the latest financial disclosure, Neptune Wellness Solutions reported 19.97 M of revenue. This is 99.74% lower than that of the Healthcare sector and significantly higher than that of the Drug Manufacturers?Specialty & Generic industry. The revenue for all United States stocks is 99.79% higher than that of the firm. As for Eagle Pharmaceuticals we see revenue of 192.13 M, which is much higher than that of the Drug Manufacturers?Specialty & Generic

192.1 M
NEPT19.97 Million9.42
EGRX192.13 Million90.58

Over 3 percent gain for Neptune Wellness. What does it mean for private investors?

Jensen alpha is down to 0.46. It may call for a possible volatility drop. Neptune Wellness Solutions shows above-average downside volatility for the selected time horizon. We advise investors to inspect Neptune Wellness Solutions further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Neptune Wellness future alpha.

Our Takeaway on Neptune Wellness Investment

Whereas many other companies under the drug manufacturers?specialty & generic industry are still a bit expensive, Neptune Wellness may offer a potential longer-term growth to private investors. With an optimistic outlook on your 30 days horizon, it may be a good time to buy new shares of Neptune or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. 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 Neptune Wellness.

About Contributor

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 Neptune Wellness Solutions. Please refer to our Terms of Use for any information regarding our disclosure principles.

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