Quotient Story

QTNT -- USA Stock

USD 4.51 0.02 0.44%

Macroaxis Story

It appears Quotient may not recover as fast as we have hopped for as its price went down 0.82% today. Quotient Limited current daily volatility is 3.8 percent, with a beta of 0.52 and an alpha of 0.41 over DOW. While many traders are getting carried away by overanalyzing market volatility, it is reasonable to review Quotient Limited based on how it reacts to the newest economic swings. We will evaluate why we are still optimistic in anticipation of a recovery.

Published over three weeks ago

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Is Quotient (NASDAQ:QTNT) way too risky for millennials?

Quotient Limited currently holds roughly 162.74 M in cash with (68.56 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.61. This firm currently holds 203.28 M in liabilities with Debt to Equity (D/E) ratio of 6.03, indicating Quotient may have difficulties to generate enough cash to satisfy its financial obligations. The company has a current ratio of 4.41, suggesting that it is liquid enough and is able to pay its financial obligations when due.

Investing in Quotient, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Quotient along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Quotient's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Quotient in the context of predictive analytics.

Please note, it is not enough to conduct a financial or market analysis of a single entity such as Quotient. Your research has to be compared to or analyzed against Quotient's peers to derive any actionable benefits. When done correctly, Quotient's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Quotient Limited.

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 (92.74 Million) in 2020

Quotient Correlation with Peers

Investors in Quotient can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Quotient Limited. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Quotient and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Quotient is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.

Please check volatility of Quotient for more details

Breaking down the case for Quotient

Quotient appears to be slightly risky, given 1 month investment horizon. Quotient Limited maintains Sharpe Ratio (i.e. Efficiency) of 0.0789, which implies the firm had 0.0789% of return per unit of risk over the last month. Our standpoint towards forecasting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Quotient Limited, which you can use to evaluate future volatility of the company. Please employ Quotient Limited Risk Adjusted Performance of 0.1226, semi deviation of 4.09, and Coefficient Of Variation of 795.64 to confirm if our risk estimates are consistent with your expectations.

	PHG	LZAGY	SMMNY	IDXX	ILMN
PHG		0.53	0.87	0.78	0.78	PHG
LZAGY	0.53		0.41	0.48	0.34	LZAGY
SMMNY	0.87	0.41		0.81	0.95	SMMNY
IDXX	0.78	0.48	0.81		0.73	IDXX
ILMN	0.78	0.34	0.95	0.73		ILMN
	PHG	LZAGY	SMMNY	IDXX	ILMN

Click cells to compare fundamentals

Check Volatility

Backtest Portfolio

Quotient has a fair chance to close above $5.94 mark in March

Quotient newest standard deviation boosts over 4.02. Quotient Limited exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Quotient Limited individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Quotient future systematic risk.

Whereas some companies under the diagnostics & research industry are still a bit expensive, Quotient may offer a potential longer-term growth to private investors. With a relatively neutral outlook on the newest economy, it is better to hold off any trading of Quotient as the current risk-reward utility is not appealing enough. 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

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. 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 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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Quotient Story

USD 4.51 0.02 0.44%

How important is Quotient's Liquidity

How Quotient utilizes its cash?

Quotient Correlation with Peers

Breaking down the case for Quotient

Quotient has a fair chance to close above $5.94 mark in March

About Contributor

Would you like to provide feedback on the content of this article?

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