Xtant Story

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XTNT -- USA Stock  

USD 1.91  0.01  0.52%

While some of us are excited about healthcare space, it makes sense to review Xtant Medical Holdings in greater detail to make a better assessment of its actual value. We will evaluate why we are still confident in anticipation of a recovery. Is the firm valuation sustainable? Here I will cover a perspective on valuation of Xtant to give you a better outlook on taking a position in this stock.
Published over a month ago
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Is Xtant Medical (AMEX:XTNT) ready for a correction?
The company currently holds 81.52 M in liabilities with Debt to Equity (D/E) ratio of 605.8, indicating Xtant Medical may have difficulties to generate enough cash to satisfy its financial obligations. Xtant Medical Holdings has a current ratio of 3.4, suggesting that it is liquid enough and is able to pay its financial obligations when due.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Xtant Medical has an asset utilization ratio of 39.91 percent. This implies that the company is making $0.4 for each dollar of assets. An increasing asset utilization means that Xtant Medical Holdings is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Xtant Medical Holdings using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Xtant Medical Holdings based exclusively on its fundamental and basic technical indicators. By analyzing Xtant Medical's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Xtant Medical's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Xtant Medical. We calculate exposure to Xtant Medical's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Xtant Medical's related companies.

Xtant Medical Holdings Investment Alerts

Xtant investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Xtant Medical Holdings performance across your portfolios.Please check all investment alerts for Xtant

Xtant Medical Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Xtant value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Xtant Medical competition to find correlations between indicators driving the intrinsic value of Xtant.

How Xtant utilizes its cash?

To perform a cash flow analysis of Xtant Medical, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Xtant Medical is receiving and how much cash it distributes out in a given period. The Xtant Medical cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Xtant Medical Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Xtant Medical reported Net Cash Flow from Operations of (16.57 Million) in 2020

Breaking it down a bit more

The newest price gain of Xtant Medical Holdings may raise some interest from private investors as it is trading at a share price of 4.33 on 217,910,600 in trading volume. The company executives may have good odds in positioning the company resources to exploit market volatility in March. The stock standard deviation of daily returns for 30 days investing horizon is currently 16.81. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Xtant Medical Holdings partners.

Margins Breakdown

Xtant profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Xtant Medical itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Xtant Medical profit margins.
Operating Margin(8.14)
EBITDA Margin(6.09)
Gross Margin80.92
Profit Margin(21.03)

Xtant Medical Revenue Per Employee is comparatively stable at the moment. Xtant Medical Revenue Per Employee is increasing over the last 8 years. The previous year's value of Xtant Medical Revenue Per Employee was 258,043.

Xtant Medical implied volatility may change after the gain

Newest value at risk is at -9.17. Xtant Medical Holdings exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Xtant Medical Holdings individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Xtant Medical future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Xtant Medical'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 Xtant Medical'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.

Our Bottom Line On Xtant Medical Holdings

Whereas few other entities within the medical devices industry are still a little expensive, even after the recent corrections, Xtant Medical may offer a potential longer-term growth to private investors. To summarize, as of the 27th of February 2021, we believe that at this point, Xtant Medical is overvalued with below average probability of distress within the next 2 years. Our latest buy vs. sell advice on the firm is Strong Sell.

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 Vlad Skutelnik do not own shares of Xtant Medical Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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