By analyzing existing forward indicators between Orthofix Intl and Teleflex, 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 Teleflex with a short position in Orthofix Intl. 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. Orthofix Intl has an asset utilization ratio of 112.61 percent. This suggests that the company is making $1.13 for each dollar of assets. An increasing asset utilization means that Orthofix Intl NV 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 entities, such as Orthofix or HealthStream is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Orthofix Medical's Liquidity
Orthofix Medical
financial leverage refers to using borrowed capital as a funding source to finance Orthofix Medical ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Orthofix Medical 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 Orthofix Medical'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 Orthofix Medical'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 Orthofix Medical's total debt and its cash.
Correlation Between Orthofix and HealthStream
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 Orthofix Medical together with similar or unrelated positions with a negative correlation. For example, you can also add HealthStream to your portfolio. If HealthStream is not perfectly correlated to Orthofix Medical 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 Orthofix Medical, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Orthofix Medical and HealthStream in your portfolio? Please note if you are using this as a pair-trade strategy between Orthofix Medical and HealthStream, 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. Please check
pair correlation details between OFIX and HSTM for more information.
Breaking down the case for Orthofix Medical
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 take a look at Orthofix Intl revenue. Based on the latest financial disclosure, Orthofix Intl NV reported 465.3
M of revenue. This is 93.9% lower than that of the Healthcare sector and 81.76% lower than that of the
Medical Devices industry. The revenue for all United States stocks is 95.07% higher than that of Orthofix Intl. As for Teleflex we see revenue of 2.82
B, which is 10.55% higher than that of the Medical Devices
| OFIX | 465.3 Million | 7.97 |
| Sector | 2.55 Billion | 43.71 |
| TFX | 2.82 Billion | 48.32 |
Chances of Orthofix Intl to fall back
Current maximum drawdown is at 9.76. Orthofix Intl NV exhibits very low volatility with skewness of -0.89 and kurtosis of 1.93. However, we advise investors to further study Orthofix Intl NV technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Orthofix Intl's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Orthofix Intl'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.
Orthofix Intl Implied Volatility
Our Conclusion on Orthofix Intl
While many other companies in the medical devices industry are either recovering or due for a correction, Orthofix may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither buy new shares of Orthofix nor short your existing holdings in the Stock. It seems the expected volatility 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 Orthofix Intl.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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 Gabriel Shpitalnik do not own shares of Orthofix Medical. Please refer to our
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