As we delve into the financials of Cybin Inc. (CYBN), a healthcare company in the biotechnology industry, we observe some noteworthy trends. Despite a net asset of
53.9M and cash and equivalents of
30.21M, the company has reported a significant operating income loss of
54.9M. This is largely due to high selling and marketing expenses of 881K and a net income from continuing operations loss of 47.5M. The company's return on equity and return on asset are also in the negative, standing at -0.91 and -0.53 respectively. Interestingly, insiders own 21.99% of the company's 234.68M outstanding shares, while institutions own a mere 5.31%. However, there has been a notable increase in the number of shares shorted, from 5.1M in the prior month to 3.56M currently. This could potentially indicate a shift in insider sentiment towards the company. Given these factors, investors may want to keep an eye on Vaccitech (VACC), another player in the biotechnology industry. The transition of insiders from CYBN to VACC could signal a potential investment shift in the biotechnology sector. This is particularly relevant considering the current 50-day MA of 0.3665 and 200-day MA of 0.3684 for CYBN, indicating a bearish trend. It appears that Vaccitech PLC may continue to recover at a faster pace, as its price only dropped by 4% today compared to CybinInc's decline of 2.27%. As the biotechnology sector continues to generate excitement among investors, CybinInc and Vaccitech PLC seem to be heading in opposite directions. We will be focusing on some of the competitive aspects of both CybinInc and Vaccitech.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Cybin. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Cybin, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Cybin's Liquidity
Cybin
financial leverage refers to using borrowed capital as a funding source to finance Cybin Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cybin 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 Cybin'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 Cybin'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 Cybin's total debt and its cash.
Cybin Gross Profit
Cybin Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cybin 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 Cybin Gross Profit growth over the last 10 years. Please check Cybin's
gross profit and other
fundamental indicators for more details.
Breaking down Cybin Further
Cash and Equivalents Breakdown
Now, let's check CybinInc cash and equivalents. In accordance with the recently published financial statements, CybinInc has 30.21
M in Cash and Equivalents. This is 96.32% lower than that of the Biotechnology sector and 93.24% lower than that of the
Health Care industry. The cash and equivalents for all United States stocks is 98.88% higher than that of CybinInc. As for Vaccitech PLC we see cash and equivalents of 192.33
M, which is 56.98% lower than that of the Health Care
| CYBN | 30.21 Million | 4.51 |
| Sector | 447.12 Million | 66.77 |
| VACC | 192.33 Million | 28.72 |
The Biotechnology industry is a hotbed for investment opportunities, and Cybin Inc. (CYBN) is one such prospect, despite its high probability of bankruptcy at 96.00%. The company's NYSE MKT-listed shares are currently shorted by 3.56M, a decrease from 5.1M in the prior month. With 21.99% of shares owned by insiders, it's worth noting that a potential shift might be underway towards Vaccitech (VACC).
Cybin's financials show a net income loss of $47.5M and an operating income loss of $54.9M, which reflects the company's struggles. However, the company's current ratio of 7.84X and net assets of
$53.9M indicate a strong liquidity position. The book value stands at 0.181 with a price to book ratio of 1.16X, suggesting the stock might be undervalued. The company's market capitalization is
$72.99M, with an enterprise value of $64.8M, reflecting a potential undervaluation in the market. The stock has experienced a 52-week high and low of 0.655 and 0.21, respectively, with a target price of $3.67. With a beta of 2.07, the stock is relatively volatile, offering potential upside of 10. Despite the risks, institutional investors hold 5.31% of the company's shares, reflecting some level of confidence in the company's
future prospects. In conclusion, while Cybin's
financial performance is currently weak, its undervaluation and strong liquidity position make it an investment to watch, especially if insiders are transitioning to Vaccitech. .
Another setback for CybinInc insiders
Cybin Inc.'s stock has recently faced a setback, with the information ratio dropping to 0.12 as of today. This decrease implies that the company's returns are not sufficiently compensating investors for the risk they are taking. The reduced ratio may deter insiders from expanding their stakes, as it signifies a higher level of unsystematic risk. This setback could potentially impact the company's
future performance and stock value, rendering it a less appealing investment option for insiders. Cybin Inc. is exhibiting above-average volatility over the chosen time period. Investors are advised to thoroughly examine Cybin Inc. independently to ensure that their intended
market timing strategies align with their expectations about the company's volatility. Cybin Inc. is potentially a penny stock. While Cybin Inc. may indeed be a sound investment, many penny stocks are speculative and subject to artificial price inflation. We urge 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 prior to SEC filings.
It is also recommended to review the biographies and employment history of current and former company officers before investing in high volatility instruments, penny stocks, or equities classified as microcap. Investing in Cybin Inc. can be profitable if you time your entry and exit perfectly. However, it's important to remember that penny stocks that have been artificially hyped typically cannot maintain their elevated 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 enhance shareholder value is through legitimate performance supported by robust fundamentals. In conclusion, CybinInc presents a compelling investment opportunity. With a strong
analyst consensus recommending a 'Buy' stance, the company's stock is backed by a total of
6 analysts, including
5 strong buys. The estimated target price ranges from a low of $1 to a high of $10, with an average estimated value of $4.333, indicating a significant potential upside from the current market valuation of $0.43. The company's fiscal year ends in March, and while the EPS estimates for the current and next year are negative at -0.22 and -0.2 respectively, the possible upside price of $7.99 suggests that the potential rewards could outweigh the risks. However, investors should also consider the possible downside price of $0.0043. In light of these factors, CybinInc could be a valuable addition to a diversified investment portfolio. .
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of Cybin Inc. Please refer to our
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