Will Cyclacel Pharmaceuticals (USA Stocks:CYCC) turn things around in April?
 | By Nico Santiago | Macroaxis Story |
Cyclacel Pharmaceuticals, a prominent player in the healthcare and biotechnology industry, has been under the spotlight recently. Despite reporting a loss of $28.9M in EBITDA and a negative enterprise value of $2.7M, the company has managed to maintain a steady interest income of $365K. With a market capitalization of $3.2M and a valuation market value of $2.51, the company's financial health is under scrutiny. However, with one analyst recommending a strong buy and a highest estimated target price of $13.6, there is potential for a bullish turnaround in April. The company's revenue per share stands at $0.464, indicating a possible upside for investors. Currently, Cyclacel Pharmaceuticals' Days of Payables Outstanding is anticipated to rise significantly, based on recent years' data. The Effective Tax Rate for the current year is projected to increase to 0.17, while the Short Term Coverage Ratios are expected to grow to -247.62. Amid growing investor interest in the biotechnology sector, it's worth examining Cyclacel Pharmaceuticals. We remain optimistic about a potential recovery. This article will highlight key fundamental factors impacting Cyclacel Pharmaceuticals' services and discuss their potential effect on investor outlook for the current year.
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Reviewed by Raphi Shpitalnik
Cyclacel Pharmaceuticals reported a revenue of $389K for the previous year. The company incurred a net loss of $24.7M for the same period. This loss includes overheads, payroll, taxes, and interest, before which the loss stood at $455K.
Main Ideas
With a high standard deviation of 7.56 and a potential upside of 12.85, Cyclacel Pharmaceuticals (NASDAQ: CYCC) could be poised for a bullish turnaround in April. Despite a net income loss of 24.7M and negative earnings per share of 29.85, the biotechnology firm's market risk-adjusted performance of -0.29 and daily balance of power of 0.4211 indicate potential for significant price movement. The performance of Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals' stock prices. When investing in Cyclacel Pharmaceuticals, 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, Cyclacel 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 Cyclacel Pharmaceuticals 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.
Watch out for price decline
Please consider monitoring Cyclacel Pharmaceuticals on a daily basis if you are holding a position in it. Cyclacel Pharmaceuticals is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Cyclacel Pharmaceuticals stock to be traded above the $1 level to remain listed. If Cyclacel Pharmaceuticals stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Cyclacel Pharmaceuticals's Liquidity
Cyclacel Pharmaceuticals financial leverage refers to using borrowed capital as a funding source to finance Cyclacel Pharmaceuticals ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals' 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 Cyclacel Pharmaceuticals' 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 Cyclacel Pharmaceuticals's total debt and its cash.
Cyclacel Pharmaceuticals Gross Profit
Cyclacel Pharmaceuticals Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Cyclacel Pharmaceuticals 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 Cyclacel Pharmaceuticals Gross Profit growth over the last 10 years. Please check Cyclacel Pharmaceuticals' gross profit and other fundamental indicators for more details.
Is Cyclacel Pharmaceuticals valued correctly by the market?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cyclacel Pharmaceuticals has an asset utilization ratio of 1.41 percent. This indicates that the Company is making $0.0141 for each dollar of assets. An increasing asset utilization means that Cyclacel Pharmaceuticals is more efficient with each dollar of assets it utilizes for everyday operations. As the saying goes, "In the world of investing, the rearview mirror is always clearer than the windshield." Cyclacel Pharmaceuticals (CYCC) is a case in point. Despite a challenging operating margin of -427.81 and a net income loss of $24.7M, the company's strong current ratio of 6.38X and a book value of 5.10X per share suggest a robust financial position. However, with a high probability of bankruptcy at 95.44%, the company's future remains uncertain. The Wall Street target price of $93 indicates potential upside, but investors should tread carefully given the company's financial health.
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