The company's average rating is Buy from 7 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Novavax market sentiment investors' perception of the future value of Novavax. Let us look at a few aspects of Novavax technical analysis. The company has Profit Margin (PM) of
(133.1) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of
(35.49) %, which suggests for every $100 dollars of sales, it generated a net operating loss of -0.35.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Novavax. In general, sophisticated investors focus on analyzing Novavax stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Novavax's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Novavax's intrinsic value. In addition to deriving basic predictive indicators for Novavax, many experienced traders also check how macroeconomic factors affect Novavax price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Novavax's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Novavax. Your research has to be compared to or analyzed against Novavax's peers to derive any actionable benefits. When done correctly, Novavax's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Novavax.
How important is Novavax's Liquidity
Novavax
financial leverage refers to using borrowed capital as a funding source to finance Novavax ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Novavax 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 Novavax'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 Novavax'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 Novavax's total debt and its cash.
Novavax Gross Profit
Novavax Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Novavax 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 Novavax Gross Profit growth over the last 10 years. Please check Novavax's
gross profit and other
fundamental indicators for more details.
Closer look at Novavax Variance
Novavax has current Variance of 36.59. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.
Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.
Variance | = | SUM(RET DEV)2 N |
| = | 36.59 |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N | = | Number of points for the period |
Let's now compare Novavax Variance to its closest peers:
| NVAX | 36.59133519841809 |
| DNLI | 23.98 |
| EARS | 2,137.59 |
| DYAI | 8.36 |
| DTIL | 48.62 |
Can Novavax build up on the current rise?
Novavax current coefficient of variation rises over 828.94. Novavax is displaying above-average volatility over the selected time horizon. Investors should scrutinize Novavax independently to ensure intended market timing strategies are aligned with expectations about Novavax volatility.
Our Final Take On Novavax
While few other entities within the biotechnology industry are still a little expensive, even after the recent corrections, Novavax may offer a potential longer-term growth to investors. To conclude, as of the 30th of January 2021, our present 30 days buy-or-sell advice on the company is
Cautious Hold. We believe Novavax is
overvalued with
very low odds of financial distress for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Novavax. Please refer to our
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