Check Cap (USA Stocks: CHEK), a player in the Health Care Equipment & Services industry, has been showing some interesting financial figures that could hint at a potential breakthrough this December. Despite reporting a loss with an Earnings Per Share (EPS) of -3.37
, the company's Book Value stands at 5.16
, indicating a solid asset base. The company's Market Capitalization is at 20.4M
, which, coupled with a Return On Assets of -0.29
, suggests that the company is making strategic investments. The Coefficient Of Variation at 931.83
and a Standard Deviation of 4.71
indicate a high level of volatility, which could mean significant potential for growth if the company's strategies pay off.
The net loss for the year was $(19.11 million). The profit before overhead, payroll, taxes, and interest was $0.
The performance of Check Cap in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Check Cap's stock prices
. When investing in Check Cap, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Check Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Check Cap carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
How important is Check Cap's Liquidity
Check Cap financial leverage
refers to using borrowed capital as a funding source to finance Check Cap ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Check Cap 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 Check Cap'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 Check Cap'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 Check Cap's total debt and its cash.
What is driving Check Cap Investor Appetite?
The market capitalization
of Check Cap is $20.36 Million. Almost 97.0 percent of Check Cap outstanding shares are held by general public with 0.14 (percent) owned by insiders
and only 2.54 % by other corporate entities
. Note, that even with negative profits
, if the true value of the firm is larger than the current market value, you may still be able to generate positive returns on investment in this company.
In the world of finance, it's often said that the market is a device for transferring money from the impatient to the patient. This could not be more true for Check Cap (USA Stocks: CHEK), a company in the healthcare sector that has been steadily working on its innovative health care equipment and supplies.
With a market capitalization of 20.36M
and net assets of 45.44M
, the company is not without its financial strengths. However, it's also worth noting that the company has been operating at a loss, with an EBITDA of -19.8M and an operating income of -20M. Despite these challenges, Wall Street has set a target price of 7 for the company's stock, indicating a potential upside. As we approach December, the company's fiscal year end, investors are eagerly awaiting any exciting news that could potentially boost the company's stock price. The company's low beta of 0.62 suggests less volatility compared to the market, which could be a positive sign for risk-averse investors. .
Another 3 percent rise for Check Cap
Check Cap's stock continues to exhibit robust performance, with a further 3 percent rise, underscoring its consistent upward trajectory. The recent decrease in variance to 22.18 indicates a potential reduction in volatility, potentially making this stock a more appealing choice for investors seeking stability. This trend implies a more predictable pattern in the stock's movement, potentially offering a safer investment opportunity. As of November 27th, Check Cap displays a mean deviation of 3.04 and a Risk Adjusted Performance of 0.0803. Check Cap's technical analysis
provides a methodology to utilize historical prices and volume patterns to discern a pattern that approximates the direction of the company's future prices. In other words, this information can be used to determine if the company will indeed reflect its model of historical prices and volume momentum, or if the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Check Cap, which can be compared to its competitors
. We recommend you confirm Check Cap's Jensen Alpha, and the relationship between the coefficient of variation and potential upside to decide if Check Cap is priced correctly, considering its regular price of 3.48 per share. Given that Check Cap has a Jensen Alpha of 0.5025, we suggest you validate Check Cap's current market performance to ensure the company can sustain itself in the future.
Our Bottom Line On Check Cap
Whereas many other companies within the diagnostics & research industry are still a little expensive, even after the recent corrections, Check Cap may offer a potential longer-term growth to institutional investors. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither pick up new shares of Check nor drop your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 Check Cap.
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