Quotient Story

QTNT -- USA Stock

USD 4.49 0.04 0.88%

Macroaxis Story

It appears Quotient may not recover as fast as we have hopped for as its price went down 12.54% today. This firm current daily volatility is 4.15 percent, with a beta of -0.77 and an alpha of 0.6 over DOW. As many millenniums are trying to avoid the newest volatility, we are going to review Quotient Limited a little further to understand its historical price patterns. We will evaluate if Quotient shares are reasonably priced going into March.

Published over three weeks ago

View all stories for Quotient | View All Stories

Is Quotient (NASDAQ:QTNT) a new disruptor?

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. The company holds a Beta of -0.7717, which implies possible diversification benefits within a given portfolio. Let's try to break down what Quotient's beta means in this case. As returns on the market increase, returns on owning Quotient are expected to decrease at a much lower rate. During the bear market, Quotient is likely to outperform the market. Although it is extremely important to respect Quotient Limited current trending patterns, it is better to be realistic regarding the information on equity existing price patterns. The philosophy towards forecasting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Quotient Limited technical indicators, you can presently evaluate if the expected return of 0.0565% will be sustainable into the future. Quotient Limited right now holds a risk of 4.15%. Please check Quotient Limited jensen alpha, potential upside, as well as the relationship between the Potential Upside and accumulation distribution to decide if Quotient Limited will be following its historical price patterns.

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

We consider Quotient slightly risky. Quotient Limited maintains Sharpe Ratio (i.e. Efficiency) of 0.0136, which implies the firm had 0.0136% 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-seven technical indicators for Quotient Limited, which you can use to evaluate future volatility of the company. Please check Quotient Limited Coefficient Of Variation of 795.64, semi deviation of 4.09, and Risk Adjusted Performance of 0.1177 to confirm if the risk estimate we provide is consistent with the expected return of 0.0565%.

	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

Will Quotient private investors go mental after another drop?

Newest standard deviation is at 4.02. As of the 1st of February, Quotient holds the Semi Deviation of 4.09, risk adjusted performance of 0.1177, and Coefficient Of Variation of 795.64. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Quotient, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to collect and analyze data for nineteen technical drivers for Quotient Limited, which can be compared to its competitors. Please check Quotient Limited variance and potential upside to decide if Quotient Limited is priced some-what accurately, providing market reflects its current price of 5.3 per share. Given that Quotient has jensen alpha of 0.6, we recommend you to check out Quotient Limited's recent market performance to make sure the company can sustain itself at a future point.

Our Final Takeaway

Whereas many of the other players in the diagnostics & research industry are either recovering or due for a correction, Quotient may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 1st of February 2021, we believe Quotient is currently undervalued. It follows the market closely and projects quite high chance of bankruptcy in the next two years. However, our primary 30 days advice on the firm is Sell.

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.

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

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2021 Macroaxis LLC

Quotient Story

USD 4.49 0.04 0.88%

How important is Quotient's Liquidity

How Quotient utilizes its cash?

Quotient Correlation with Peers

Breaking down the case for Quotient

Will Quotient private investors go mental after another drop?

Our Final Takeaway

About Contributor

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

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY