Quotient Story

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QTNT -- USA Stock  

USD 5.14  0.18  3.38%

Quotient PPandE Turnover is comparatively stable at the moment as compared to the past year. Quotient reported PPandE Turnover of 0.74 in 2019. Receivables Turnover is likely to grow to 9.16 in 2020, whereas Earnings before Tax are likely to drop (42 M) in 2020. The essential rationale behind this perspective is to break down our current position on Quotient for private investors considering to short it. We will break down why Quotient private investors may still consider a stake in the business.
Published over a month ago
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Our projection for Quotient (NASDAQ:QTNT) in September
Quotient has a beta of -0.4268. Let's try to break down what Quotient's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Quotient will likely underperform. The beta indicator helps investors understand whether Quotient moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Quotient deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Quotient Limited. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Quotient

How important is Quotient's Liquidity

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

How Quotient utilizes its cash?

To perform a cash flow analysis of Quotient, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Quotient is receiving and how much cash it distributes out in a given period. The Quotient cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Quotient Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Quotient reported Net Cash Flow from Operations of (80.65 Million) in 2019

Breaking down the case for Quotient

The modest gains experienced by current holders of Quotient created some momentum for private investors as it was traded today as low as 7.79 and as high as 8.39 per share. The company management teams have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in July. The stock standard deviation of daily returns for 30 days investing horizon is currently 5.14. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Quotient partners.

Margin Breakdown

Operating Margin(55.85)
EBITDA Margin(53.83)
Gross Margin44.42
Profit Margin(63.84)

Over 3 percent reset for Quotient. What does it mean for private investors?

Newest Information Ratio is up to -0.05. Price may reset again. Quotient Limited exhibits very low volatility with skewness of 0.6 and kurtosis of 2.04. However, we advise investors to further study Quotient Limited technical indicators to make sure all market info is available and is reliable.

The Bottom Line

Whereas few other entities in the diagnostics & research industry are either recovering or due for a correction, Quotient may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Quotient valuation and our trade advice on Quotient 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 Quotient.

About Contributor

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 Quotient Limited. Please refer to our Terms of Use for any information regarding our disclosure principles.

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