By analyzing existing basic indicators between 22nd Century and Catalent, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Catalent with a short position in 22nd Century. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. 22nd Century has an asset utilization ratio of 153.36 percent. This implies that the company is making $1.53 for each dollar of assets. An increasing asset utilization means that 22nd Century Group is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as 22nd or Green is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is 22nd Century's Liquidity
22nd Century
financial leverage refers to using borrowed capital as a funding source to finance 22nd Century Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. 22nd Century 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 22nd Century'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 22nd Century'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 22nd Century's total debt and its cash.
Correlation Between 22nd and Green Globe International
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding 22nd Century together with similar or unrelated positions with a negative correlation. For example, you can also add Green Globe to your portfolio. If Green Globe is not perfectly correlated to 22nd Century it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When 22nd Century, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both 22nd Century and Green Globe in your portfolio? Please note if you are using this as a pair-trade strategy between 22nd Century and Green Globe, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between XXII and GGII for more information.
Breaking down the case for 22nd Century
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me take a closer look at 22nd Century revenue. Based on the latest financial disclosure, 22nd Century Group reported 28.06
M of revenue. This is 99.63% lower than that of the Healthcare sector and significantly higher than that of the
Drug Manufacturers—Specialty & Generic industry. The revenue for all United States stocks is 99.7% higher than that of 22nd Century. As for Catalent we see revenue of 3.28
B, which is much higher than that of the Drug Manufacturers—Specialty & Generic
| XXII | 28.06 Million | 0.85 |
| Sector | 0.0 | 0.0 |
| CTLT | 3.28 Billion | 99.15 |
Over 3 percent rise for 22nd Century. What does it mean for stockholders?
22nd Century current market risk adjusted performance boosts over 20.02. 22nd Century Group is displaying above-average volatility over the selected time horizon. Investors should scrutinize 22nd Century Group independently to ensure intended market timing strategies are aligned with expectations about 22nd Century volatility.
Our Conclusion on 22nd Century
While many other companies within the drug manufacturers—specialty & generic industry are still a little expensive, even after the recent corrections, 22nd Century may offer a potential longer-term growth to stockholders. To conclude, as of the 11th of December 2020, our analysis shows that 22nd Century barely shadows the market. The company is
undervalued and projects
very small probability of bankruptcy for the next 2 years. Our primary 30 days advice on the company is
Cautious Hold.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of 22nd Century Group. Please refer to our
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