Should I short all of Volitionrx and Centogene?

By evaluating the fundamental indicators between Centogene and Volitionrx, we can assess the impact of market volatilities on both companies' stock prices and determine if they can mitigate market risk when combined in one of your portfolios. Pair trading strategies can also be employed, matching a long position in Volitionrx with a short position in Centogene. For more information, please refer to our pair correlation module. Let's begin by examining the assets. The asset utilization indicator refers to the revenue generated for every dollar of assets a company currently reports. Centogene has an asset utilization ratio of 51.15 percent, which suggests that the company is generating $0.51 for each dollar of assets. An increasing asset utilization indicates that Centogene B V is becoming more efficient with each dollar of assets it uses for daily operations.

Continued study

Centogene B.V., a company operating in the Diagnostics & Research industry, has been under scrutiny due to its financial performance. The company, which went public on the 7th of November 2019, has been struggling with a negative profit margin of 67%, indicating a significant loss. Furthermore, the company's Earnings Per Share (EPS) estimate for the current year stands at a loss of $1.48, while its actual earnings per share are reported at a loss of $1.5. From a risk perspective, Centogene B.V. has a high standard deviation of 8.9 and a downside variance of 26.5, suggesting a high level of volatility and potential risk for investors. The company's risk-adjusted performance is relatively low at 0.063, while its Jensen Alpha, a measure of risk-adjusted performance, is 0.8447. Despite these challenges, the company has a cash reserve of $32M and a revenue per share of $1.771. However, considering the company's negative financial performance and high risk, investors may want to reassess their investment in Centogene B.V. stocks.
Published over a year ago
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Reviewed by Raphi Shpitalnik

Centogene B.V., a player in the Healthcare sector, specifically in the Diagnostics & Research industry, has been exhibiting a concerning financial performance. The company reported a significant loss with an Earnings Per Share (EPS) estimate for the current year at -1.48 and for the next year at -0.96. This is coupled with a negative Profit Margin of -0.67 and an Operating Margin of -0.76, indicating a lack of profitability. The Return On Assets and Return On Equity stand at -0.24 and -2.23 respectively, further underscoring the company's underperformance. Despite having cash reserves of $32M, the company's EBITDA is at a loss of $31.1M and a negative Free Cash Flow of $28.6M, which could potentially limit its operational and growth capabilities. The company's Book Value is 0.269, and its Valuation Market Value is 1.14, both of which are relatively low. Moreover, the company's stock has been trading below the Wall Street Target Price of $1.48, with a 200 Day Moving Average of 0.9708. The Naive Expected Forecast Value is only 1.22, suggesting limited upside potential. Although there is one strong buy recommendation from analysts, the overall outlook for Centogene B.V. remains cautious. Given these factors, investors might want to consider divesting from Centogene B.V. stocks. Many millennials are showing enthusiasm about the health care providers & services sector, and we are going to focus on both Centogene B.V. and VolitionRx as potential mid-term opportunities. We will analyze some of the competitive aspects of both Centogene B.V. and VolitionRx.
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 Centogene or Fonar is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Centogene's Liquidity

Centogene financial leverage refers to using borrowed capital as a funding source to finance Centogene B V ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Centogene 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 Centogene'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 Centogene'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 Centogene's total debt and its cash.

Correlation Between Centogene and Fonar

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 Centogene together with similar or unrelated positions with a negative correlation. For example, you can also add Fonar to your portfolio. If Fonar is not perfectly correlated to Centogene 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 Centogene, 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 Centogene and Fonar in your portfolio? Please note if you are using this as a pair-trade strategy between Centogene and Fonar, 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 CNTG and FONR for more information.

Detailed Perspective On Centogene

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

Now, let's check Centogene revenue. Based on the latest financial disclosure, Centogene B V reported 47.47 M of revenue. This is 99.38% lower than that of the Health Care Providers & Services sector and 97.6% lower than that of the Health Care industry. The revenue for all United States stocks is 99.5% higher than that of Centogene. As for Volitionrx we see revenue of 306.39 K, which is 99.98% lower than that of the Health Care
Sector
B
CNTG47.47 Million2.34
Sector1.98 Billion97.65
VNRX306,3920.0151
Centogene B.V., a company in the Diagnostics & Research industry, has been experiencing a challenging financial period. With a negative operating margin of -0.76 and an EBITDA loss of $31.1M, the company's financial health appears to be in a precarious state. The company's EPS estimate for the current year stands at a loss of $1.48, further indicating potential financial distress.
The company's total debt is $60.12M, which is significantly high compared to its market capitalization of only $31.49M. This high debt level, coupled with a negative return on equity of -2.23, suggests that the company is struggling to generate profits for its shareholders. Despite these challenges, Centogene B.V. maintains a strong current ratio of 2.48X, indicating its ability to meet short-term obligations. However, with a quarterly revenue growth of -0.78 and a book value of 0.269, the company's growth potential seems limited. Institutional ownership stands at 65.80%, suggesting that professional investors still see some value in the company. However, with a downside deviation of 5.15 and a beta of -0.62, the stock carries significant risk. Given these factors, investors may want to consider divesting from Centogene B.V. The company's financial performance and market indicators suggest a high level of risk and limited growth potential. As always, investors should conduct their own due diligence before making any investment decisions. .

Over 3 percent rise for Centogene. What does it mean for stockholders?

Centogene B V's stock has recently experienced an impressive rise of over 3%, a positive development for shareholders. This surge is particularly significant given that the value at risk (VaR) has decreased to -9.48 as of today. VaR, a statistical technique used to measure and quantify the level of financial risk within a firm over a specific time frame, indicates a reduced likelihood of potential loss for the company. This, combined with the stock's recent rise, suggests a promising outlook for Centogene's shareholders, as it implies a lower risk associated with their investment. Centogene B V has exhibited above-average volatility over the selected time period. Investors should independently scrutinize Centogene B V to ensure that their intended market timing strategies align with their expectations about Centogene's volatility. Centogene B V is potentially a penny stock. While Centogene may indeed be a good investment, many penny stocks are speculative and subject to artificial price inflation. We encourage investors to be vigilant for signals such as email spam, message board hype, claims of breakthroughs, sudden increases in volume, unexpected news releases, unreported promotions, or demotions released before SEC filings. It's also advisable to check the biographies and work histories of current and past company officers before investing in high volatility instruments, penny stocks, or equities with a microcap classification.
While it's possible to profit from Centogene's stock if you time your entry and exit perfectly, it's important to remember that penny stocks that have been subject to artificial hype often cannot maintain their increased share price for more than a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to sustainably increase shareholder value is through legitimate performance backed by solid fundamentals. In conclusion, Centogene B.V. (CNTG) has shown promising performance with a recent boost of over 3 percent. The company's valuation real value stands at 1.36, with a possible upside price of 10.2. Analysts are optimistic about the stock's future, with the highest estimated target price being 1.5, matching the lowest estimated target price. This indicates a strong consensus among analysts about the stock's potential. The fiscal year-end data could reveal more about the company's performance and future prospects. Given these factors, it is possible that we may see a further boost in Centogene's stock value. However, as with any investment, potential investors should carefully consider the possible downside price of 0.0114 before making a decision. .

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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 Centogene B V. Please refer to our Terms of Use for any information regarding our disclosure principles.

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