Is Chromadex Corp (USA Stocks:CDXC) ready for a correction?

ChromaDex Corp has liabilities totaling $3.28 million and a Debt to Equity (D/E) ratio of 0.22. This low ratio might indicate that the company isn't fully leveraging borrowing opportunities. To enhance your investment strategy, we offer trading advice that aligns with the current expert consensus on ChromaDex Corp. Our recommendation engine employs a sophisticated algorithm that evaluates the company's growth potential by analyzing comprehensive technical and fundamental data.

Key Arguments

When evaluating Chromadex Corp (CDXC) for a potential price surge in December 2024, it's essential to consider its current valuation of 240.4M and the company's financial health. Despite a net income loss of 4.9M, Chromadex's manageable debt to equity ratio of 0.22% suggests a relatively stable financial structure. With a forward PE of 49.75, the stock appears to be priced for growth, but investors should weigh this against the company's high beta of 1.86, indicating potential volatility. As insiders hold 35.60% of shares, their confidence might signal optimism about future performance, making it a stock to watch closely.
Published over three weeks ago
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Reviewed by Rifka Kats

Timing is everything, especially when it comes to investing. As we look toward December 2024, Chromadex Corp, a player in the Life Sciences Tools & Services sector, is catching the eye of investors. With a market position on NASDAQ and a beta of 1.86, Chromadex exhibits a higher volatility compared to the broader market, suggesting potential for significant price movements. The company’s financials paint a complex picture: a net income loss of 4.9M and an operating income loss of 1.9M reflect ongoing challenges. However, a current ratio of 2.17X indicates a strong liquidity position, which could provide a cushion against short-term liabilities totaling 9.59M. The company's ability to navigate these dynamics will be crucial in determining whether it can capitalize on opportunities for growth and potentially surge in value by the end of the year. While some investors might be caught up in dissecting the life sciences tools and services sector, it's worth taking a closer look at Chromadex Corp. Let's explore why this company might not be winning much favor from shareholders amid today's market uncertainties. Is its valuation on solid ground? I'll provide insights into Chromadex's valuation to help you decide whether this stock deserves a place in your portfolio.
We determine the current worth of Chromadex Corp 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 Chromadex Corp based exclusively on its fundamental and basic technical indicators. By analyzing Chromadex Corp'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 Chromadex Corp'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 Chromadex Corp. We calculate exposure to Chromadex Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Chromadex Corp's related companies.

Chromadex Corp Investment Alerts

Chromadex 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 Chromadex Corp performance across your portfolios.Please check all investment alerts for Chromadex

Chromadex Corp Valuation Ratios as Compared to Competition

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

Chromadex Corp Gross Profit

Chromadex Corp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Chromadex Corp 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 Chromadex Corp Gross Profit growth over the last 10 years. Please check Chromadex Corp's gross profit and other fundamental indicators for more details.

Details

Chromadex Corp reported the previous year's revenue of 83.57 M. Net Loss for the year was (4.94 M) with profit before overhead, payroll, taxes, and interest of 42.8 M.
 2021 2022 2023 2024 (projected)
Interest Expense55K3K3.5K3.3K
Depreciation And Amortization1.6M1.9M1.7M863.7K

Margins Breakdown

Chromadex profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Chromadex Corp itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Chromadex Corp profit margins.
Pretax Profit Margin(0.062)
Operating Profit Margin(0.0239)
Net Profit Margin(0.062)
Gross Profit Margin0.35
Chromadex Corp Days Sales Outstanding is rather stable at the moment.
Also, Chromadex Corp Enterprise Value is rather stable at the moment. Buy low, sell high is a mantra that resonates with every investor, and Chromadex Corp (CDXC) might just be the opportunity that fits this strategy as we look towards December 2024. With a current ratio of 2.17X, the company demonstrates a solid ability to cover its short-term liabilities, which is a positive sign for potential investors. Despite reporting a net income loss of 4.9 million, Chromadex's market capitalization stands at 265.01 million, suggesting that the market sees potential in its future growth. The stock's price-to-sales ratio of 4.85X indicates that investors are willing to pay a premium for each dollar of sales, reflecting optimism about the company's revenue prospects. As the company continues to navigate the competitive landscape of the packaged foods industry, its financial metrics suggest that a price surge could be on the horizon, making it a stock worth watching..

Our perspective of the latest Chromadex Corp surge

Chromadex Corp's recent stock surge has certainly piqued investor interest, but it's important to tread carefully. The stock's coefficient of variation is an eye-popping 618.94, signaling significant volatility. This means potential for both substantial gains and losses, so it's crucial to evaluate your risk tolerance and investment strategy before jumping in. Keep a close watch on market trends and company updates to make well-informed decisions. As of November 2nd, Chromadex Corp has a mean deviation of 3.95, a risk-adjusted performance of 0.132, and a downside deviation of 2.83.
Utilizing technical analysis, investors can analyze historical prices and volume patterns to forecast potential future price movements.Considering the current dynamics surrounding Chromadex Corp, shorting the stock might seem tempting to some investors. However, it's crucial to weigh this decision against the backdrop of analyst sentiment, which leans towards a "Strong Buy" consensus. With an analyst target price estimated at 5.17 and a highest estimated target price of 5.74, there appears to be a belief in potential upside. While market conditions and individual risk tolerance should guide your strategy, these indicators suggest that betting against Chromadex might not align with the broader market outlook. As always, thorough research and a clear understanding of your investment goals are essential before making any trading decisions..

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Editorial Staff

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 Chromadex Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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