Neurometrix conducts business under
Healthcare sector and is part of
Medical Devices industry.
On a scale of 0 to 100, Neurometrix holds a
performance score of 3. The company secures a Beta (Market Risk) of 1.0316, which conveys a somewhat significant risk relative to the market. Let's try to break down what Neurometrix's beta means in this case. Neurometrix returns are very sensitive to returns on the market. As the market goes up or down, Neurometrix is expected to follow. Although it is vital to follow
Neurometrix price patterns, it is good to be conservative about what you can do with the information regarding equity historical
price patterns. The philosophy towards estimating
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By analyzing
Neurometrix technical indicators, you can presently evaluate if the expected return of 0.45% will be sustainable into the future. Please exercises Neurometrix
sortino ratio,
semi variance, as well as the
relationship between the Semi Variance and
rate of daily change to make a quick decision on whether Neurometrix current price movements will revert.
Volatility is a rate at which the price of NeuroMetrix 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 NeuroMetrix may increase or decrease. In other words, similar to NeuroMetrix's
beta indicator, it measures the risk of NeuroMetrix and helps estimate the fluctuations that may happen in a short period of time. So if prices of NeuroMetrix 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 NeuroMetrix's Liquidity
NeuroMetrix
financial leverage refers to using borrowed capital as a funding source to finance NeuroMetrix ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. NeuroMetrix 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 NeuroMetrix'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 NeuroMetrix'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 NeuroMetrix's total debt and its cash.
NeuroMetrix Gross Profit
NeuroMetrix Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing NeuroMetrix 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 NeuroMetrix Gross Profit growth over the last 10 years. Please check NeuroMetrix's
gross profit and other
fundamental indicators for more details.
NeuroMetrix Volatility Drivers
NeuroMetrix unsystematic risk is unique to NeuroMetrix 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 NeuroMetrix you can also buy
Agilent Technologies. 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 NeuroMetrix 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 NeuroMetrix income statement and balance sheet. Here are more
details about NeuroMetrix volatility.
Click cells to compare fundamentals
A Deeper Perspective
The entity reported the previous year's revenue of 8.4
M. Net Loss for the year was (3.18
M) with profit before overhead, payroll, taxes, and interest of 5.92
M.
Momentum Analysis of Neurometrix suggests possible reversal in August
Neurometrix latest skewness surges over 5.18.
As of the 21st of July, Neurometrix secures the Risk Adjusted Performance of 0.0614,
mean deviation of 5.39, and Downside Deviation of 6.1. In connection with
fundamental indicators, the
technical analysis model lets you check existing technical drivers of Neurometrix, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to interpolate data for nineteen
technical drivers for Neurometrix, which can be compared to its peers in the industry. Please verify
Neurometrix jensen alpha and
semi variance to decide if Neurometrix is priced some-what accurately, providing market reflects its recent price of 3.86 per share. Given that Neurometrix has
jensen alpha of 0.5032, we recommend you to check Neurometrix's last-minute market performance to make sure the company can sustain itself at a future point.
The Current Takeaway on Neurometrix Investment
Whereas many of the other players under the medical devices industry are still a bit expensive, Neurometrix may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view we believe that the current risk-reward utility 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 Neurometrix.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of NeuroMetrix. Please refer to our
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