By analyzing existing basic indicators between Pacira Pharm and Canntrust, 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 Canntrust with a short position in Pacira Pharm. 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. Pacira Pharm has an asset utilization ratio of 132.39 percent. This suggests that the company is making $1.32 for each dollar of assets. An increasing asset utilization means that Pacira Pharm 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 Pacira or Eagle is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Pacira Pharmaceuticals's Liquidity
Pacira Pharmaceuticals
financial leverage refers to using borrowed capital as a funding source to finance Pacira Pharmaceuticals ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Pacira Pharmaceuticals 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 Pacira Pharmaceuticals' 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 Pacira Pharmaceuticals' 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 Pacira Pharmaceuticals's total debt and its cash.
Correlation Between Pacira and Eagle Pharmaceuticals
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 Pacira Pharmaceuticals together with similar or unrelated positions with a negative correlation. For example, you can also add Eagle Pharmaceuticals to your portfolio. If Eagle Pharmaceuticals is not perfectly correlated to Pacira Pharmaceuticals 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 Pacira Pharmaceuticals, 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 Pacira Pharmaceuticals and Eagle Pharmaceuticals in your portfolio? Please note if you are using this as a pair-trade strategy between Pacira Pharmaceuticals and Eagle Pharmaceuticals, 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 PCRX and EGRX for more information.
A Deeper Perspective
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
Let me now analyze Pacira Pharm revenue. Based on the latest financial disclosure, Pacira Pharm reported 513.31
M of revenue. This is 93.27% lower than that of the Healthcare sector and significantly higher than that of the
Drug Manufacturers—Specialty & Generic industry. The revenue for all United States stocks is 94.56% higher than that of the entity. As for Canntrust Holdings we see revenue of 54.66
M, which is much higher than that of the Drug Manufacturers—Specialty & Generic
| PCRX | 513.31 Million | 90.38 |
| Sector | 0.0 | 0.0 |
| CNTTQ | 54.66 Million | 9.62 |
Pacira Pharm bad stories are not so bad
Current semi variance is at 4.26. Pacira Pharm currently demonstrates below-average downside deviation. It has Information Ratio of 0.16 and Jensen Alpha of 0.34. However, we advise investors to further question Pacira Pharm 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 Pacira Pharm'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 Pacira Pharm'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.
Pacira Pharm Implied Volatility
Pacira Pharm's implied volatility exposes the market's sentiment of Pacira Pharm stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Pacira Pharm's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Pacira Pharm stock will not fluctuate a lot when Pacira Pharm's options are near their expiration.
Our Final Take On Pacira Pharm
While other companies in the drug manufacturers—specialty & generic industry are either recovering or due for a correction, Pacira may not be as strong as the others in terms of longer-term growth potentials. While some investors may not share our view, we believe it may be a good time to increase your existing holdings in Pacira. 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 Pacira Pharm.
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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 Pacira Pharmaceuticals. Please refer to our
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