ObsEva Story

OBSV -- USA Stock

USD 3.90 0.05 1.30%

Macroaxis Story

Given the investment horizon of 90 days ObsEva SA is expected to generate 9.09 times more return on investment than the market. However, the company is 9.09 times more volatile than its market benchmark. It trades about 0.13 of its potential returns per unit of risk. The DOW is currently generating roughly 0.15 per unit of risk. While some of us are excited about healthcare space, it makes sense to focus on ObsEva SA in greater detail to make a better estimate of its risk and reward. We are going to recap if the current expected returns justify ObsEva SA's volatility.

Published over a month ago

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Still holding on to ObsEva (NASDAQ:OBSV) given latest volatility fall?

ObsEva SA currently holds 26.96 M in liabilities with Debt to Equity (D/E) ratio of 1.22, which is about average as compared to similar companies. This firm has a current ratio of 2.03, suggesting that it is liquid enough and is able to pay its financial obligations when due. ObsEva SA holds a performance score of 9 on a scale of zero to a hundred. The company holds a Beta of 0.3228, which implies possible diversification benefits within a given portfolio. Let's try to break down what ObsEva's beta means in this case. As returns on the market increase, ObsEva SA returns are expected to increase less than the market. However, during the bear market, the loss on holding ObsEva SA will be expected to be smaller as well. Although it is vital to follow ObsEva SA current trending patterns, it is good to be conservative about what you can do with the information regarding equity existing price patterns. Our philosophy towards forecasting future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if ObsEva SA expected return of 1.19 will be sustainable into the future, we have found twenty-seven different technical indicators, which can help you to check if the expected returns are sustainable. Use ObsEva SA total risk alpha, downside variance, as well as the relationship between the Downside Variance and daily balance of power to analyze future returns on ObsEva SA.

Volatility is a rate at which the price of ObsEva SA 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 ObsEva SA may increase or decrease. In other words, similar to ObsEva's beta indicator, it measures the risk of ObsEva SA and helps estimate the fluctuations that may happen in a short period of time. So if prices of ObsEva SA 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 ObsEva SA's Liquidity

ObsEva SA financial leverage refers to using borrowed capital as a funding source to finance ObsEva SA ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ObsEva SA 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 ObsEva SA's total debt and its cash.

How ObsEva utilizes its cash?

To perform a cash flow analysis of ObsEva SA, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash ObsEva SA is receiving and how much cash it distributes out in a given period. The ObsEva SA cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Another angle On ObsEva SA

The latest price climb of ObsEva SA may encourage sophisticated investors to take a closer look at the company as it is trading at a share price of 4.07 on 141,763,500 in trading volume. The company executives may have good odds in positioning the company resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 9.13. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the ObsEva SA partners.

Another 3 percent climb for ObsEva SA

Variance is down to 22.92. It may cause a possible volatility fall. As of the 16th of January 2021, ObsEva SA holds the Risk Adjusted Performance of 0.0396, semi deviation of 3.51, and Coefficient Of Variation of 3167.58. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of ObsEva SA, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for ObsEva SA, which can be compared to its competitors. Please check ObsEva SA information ratio and downside variance to decide if ObsEva SA is priced some-what accurately, providing market reflects its current price of 4.07 per share. Given that ObsEva SA has jensen alpha of 0.1075, we recommend you to check out ObsEva SA's recent market performance to make sure the company can sustain itself at a future point.

The Current Takeaway on ObsEva SA Investment

While some other companies under the biotechnology industry are still a bit expensive, ObsEva SA may offer a potential longer-term growth to sophisticated investors. The inconsistency in the assessment between current ObsEva valuation and our trade advice on ObsEva SA is due to the recent market swings and your selection of investing horizon. 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 ObsEva SA.

About Contributor

Achuva Shats is a Member of Macroaxs Editorial Board. Achuva writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce 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 Achuva Shats do not own shares of ObsEva SA. Please refer to our Terms of Use for any information regarding our disclosure principles.

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