The company currently holds 8.34
M in liabilities with Debt to Equity (D/E) ratio of 0.34, which is about average as compared to similar companies. Neovasc has a current ratio of 9.47, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Neovasc until it has trouble settling it off, either with new capital or with free cash flow. So, Neovasc's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Neovasc sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Neovasc to invest in growth at high rates of return. When we think about Neovasc's use of debt, we should always consider it together with cash and equity.
Our investment recommendation tool can cross-verify current
analyst consensus on Neovasc and to analyze the entity potential to grow in the current economic cycle.
We determine the current worth of Neovasc using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Neovasc based exclusively on its
fundamental and basic
technical indicators. By analyzing Neovasc's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Neovasc's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Neovasc. We calculate exposure to Neovasc's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Neovasc's related companies.
Neovasc Investment Alerts
Neovasc investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Neovasc performance across your portfolios.Please check all
investment alerts for Neovasc
Neovasc Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Neovasc value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Neovasc competition to find
correlations between indicators driving the intrinsic value of Neovasc.
Is Neovasc valued appropriately by the market?
The entity reported the previous year's revenue of 2.55
M. Net Loss for the year was (24.89
M) with loss before overhead, payroll, taxes, and interest of (7.08
M).
Margins Breakdown
Neovasc profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Neovasc itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Neovasc profit margins.
| EBITDA Margin | (15.94) |
| Gross Margin | 0.74 |
| Profit Margin | (16.31) |
Neovasc Earnings Before Interest Taxes and Depreciation Amortization EBITDA is quite stable at the moment. Neovasc Average Equity is decreasing over the last 8 years. The latest value of Neovasc Average Equity is -10,520,118. Additionally, Neovasc Earnings Before Interest Taxes and Depreciation Amortization USD is quite stable at the moment. Neovasc Earnings Before Interest Taxes and Depreciation Amortization EBITDA is quite stable at the moment. Neovasc Average Equity is decreasing over the last 8 years. The latest value of Neovasc Average Equity is -10,520,118. Additionally, Neovasc Earnings Before Interest Taxes and Depreciation Amortization USD is quite stable at the moment.
Over 3 percent rise for Neovasc. What does it mean for institutional investors?
Semi deviation is down to 0.76. It may entail a possible volatility slide. Neovasc currently demonstrates below-average downside deviation. It has Information Ratio of 0.29 and Jensen Alpha of 1.28. However, we advise investors to further question Neovasc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Neovasc's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Neovasc's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
The Current Takeaway on Neovasc Investment
Whereas other entities under the medical devices industry are still a bit expensive, Neovasc may offer a potential longer-term growth to institutional investors. To conclude, as of the 24th of December 2022, we believe that Neovasc is currently
overvalued with
average chance of distress in the next two years. However, our overall 90 days recommendation on the company is
Strong Buy.
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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 Neovasc. Please refer to our
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