This firm currently holds 30.54
M in liabilities with Debt to Equity (D/E) ratio of 1.43, which is about average as compared to similar companies. The company has a current ratio of 1.71, which is within standard range for the sector. Debt can assist Otonomy until it has trouble settling it off, either with new capital or with free cash flow. So, Otonomy'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 Otonomy sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Otonomy to invest in growth at high rates of return. When we think about Otonomy's use of debt, we should always consider it together with cash and equity.
We provide trade recommendations to complement the recent
expert consensus on Otonomy. Our dynamic recommendation engine exercises a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
We determine the current worth of Otonomy 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 Otonomy based exclusively on its
fundamental and basic
technical indicators. By analyzing Otonomy'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
Otonomy'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 Otonomy. We calculate exposure to Otonomy's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Otonomy's related companies.
Watch out for price decline
Please consider monitoring Otonomy on a daily basis if you are holding a position in it. Otonomy is trading at a penny-stock level, and the possibility of delisting is much higher compared to other pink sheets. However, just because the pink sheet is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Otonomy stock to be traded above the $1 level to remain listed. If Otonomy pink sheet price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
Otonomy Investment Alerts
Otonomy 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 Otonomy performance across your portfolios.Please check all
investment alerts for Otonomy
Otonomy Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Otonomy value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Otonomy competition to find
correlations between indicators driving the intrinsic value of Otonomy.
Breaking down the case for Otonomy
The current price rise of Otonomy may encourage investors to take a closer look at the company as it is trading at a share price of
0.12 on
3,444,000 in trading volume. The company executives may have good odds in positioning the company resources to exploit
market volatility in
December. The stock standard deviation of daily returns for 90 days investing horizon is currently 17.61. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Otonomy partners.
| 2019 | 2021 | 2022 (projected) |
Revenues USD | 600 K | 540 K | 627.79 K | Revenues | 600 K | 125 K | 128.29 K |
Otonomy Revenue Per Employee is increasing over the last 7 years. Also, Otonomy Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years.
Otonomy price slip is puzzling
The value at risk is down to -10.64 as of today. Otonomy is showing large volatility of returns over the selected time horizon. We encourage all investors to investigate this asset further to ensure that related market timing strategies are aligned with all the expectations about Otonomy implied risk. Otonomy is a potential penny stock. Although Otonomy may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Otonomy. We encourage investors to look for signals such as email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Otonomy instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of artificial hype usually unable to maintain their increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
Our Conclusion on Otonomy
Whereas some firms under the biotechnology industry are still a bit expensive, Otonomy may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Otonomy valuation and our trade advice on Otonomy 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 Otonomy.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
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 Otonomy. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com
