Will Streamline Health (NASDAQ:STRM) new volatility spike continue?
 | By Ellen Johnson | Macroaxis Story |
Streamline Health is currently generating 0.1996% in daily expected returns and assumes 3.9663% risk (volatility on return distribution) over the 60 days horizon. While some risk-seeking stakeholders are getting worried about healthcare space, it is reasonable to summarize Streamline Health Solutions as a possible investment alternative. We will go over odds for Streamline Health to generate above-average margins in two weeks. Streamline Health's seemingly stabilizing volatility may still impact the value of the stock as we estimate Streamline Health as currently undervalued. The real value, based on our calculations, is getting close to 2.14 per share.
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Reviewed by Michael Smolkin
This firm conducts business under Healthcare sector and is part of Health Information Services industry. Volatility is a rate at which the price of Streamline Health or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Streamline Health may increase or decrease. In other words, similar to Streamline's beta indicator, it measures the risk of Streamline Health and helps estimate the fluctuations that may happen in a short period of time. So if prices of Streamline Health fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
Watch out for price decline
Please consider monitoring Streamline Health on a daily basis if you are holding a position in it. Streamline Health is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Streamline Health stock to be traded above the $1 level to remain listed. If Streamline Health stock 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.
How important is Streamline Health's Liquidity
Streamline Health financial leverage refers to using borrowed capital as a funding source to finance Streamline Health Solutions ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Streamline Health 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 Streamline Health's 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 Streamline Health's 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 Streamline Health's total debt and its cash.
Streamline Health Gross Profit
Streamline Health Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Streamline Health previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Streamline Health Gross Profit growth over the last 10 years. Please check Streamline Health's gross profit and other fundamental indicators for more details.
Streamline Health Volatility Drivers
Streamline Health unsystematic risk is unique to Streamline Health and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Streamline Health you can also buy Forian Inc. You can also mitigate this risk by investing in the health care sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Streamline Health important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Streamline Health income statement and balance sheet. Here are more details about Streamline volatility.Click cells to compare fundamentals
A Deeper Perspective
The company reported the previous year's revenue of 20.82 M. Net Income was 2.45 M with profit before overhead, payroll, taxes, and interest of 13.26 M.
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