Returns Breakdown
| Return On Tangible Assets | (0.61) | |
| Return On Capital Employed | (0.46) | |
| Return On Assets | (0.61) | |
| Return On Equity | (1.15) |
Estimating Edesa Biotech (USA Stocks:EDSA) price for January 2025.
 | By Vlad Skutelnik | Macroaxis Story |
Edesa Biotech has a beta of 1.49, indicating its stock moves with the market but less dramatically. When the market rises, Edesa Biotech's gains might be smaller, and during downturns, its losses could be less severe. Beta helps investors gauge how closely Edesa Biotech's stock aligns with market trends and its relative volatility. Essentially, if Edesa's stock doesn't stray much from market movements, it won't add significant risk to a portfolio, but it also won't significantly boost potential returns.
Important Takeaways
Edesa Biotech (NASDAQ: EDSA) is catching the eye of investors as it approaches January, with its current price of $1.80 offering a potential entry point for those looking to capitalize on its forecasted growth. Despite a challenging environment reflected by a Jensen Alpha of -1.37, the biotechnology firm is still projected to reach a Wall Street target price of $20.50, suggesting a significant opportunity for value-seeking investors.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Gabriel Shpitalnik
As we look towards January, Edesa Biotech (NASDAQ: EDSA) presents an intriguing opportunity for investors seeking potential value entry points. This clinical-stage biopharmaceutical company, specializing in treatments for inflammatory and immune-related diseases, has been navigating a challenging market landscape. With its lead product, EB05, advancing in Phase 3 trials for acute respiratory distress syndrome in COVID-19 patients, Edesa is positioned at a critical juncture. Despite reporting a loss of $0.58 per share in the current quarter, the stock's recent trading around its 52-week low of $1.69 suggests a possible undervaluation. As analysts maintain a "Buy" consensus, the coming months could reveal whether Edesa's innovative pipeline will translate into substantial market gains. Edesa Biotech's market capitalization is anticipated to rise considerably, reflecting trends from recent years. This year, the enterprise value is expected to reach approximately $1 billion, while the free cash flow yield is projected to dip to -0.01. This article aims to evaluate Edesa's potential as we approach January, focusing on whether the stock is fairly valued.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Edesa Biotech. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Edesa Biotech
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Edesa Biotech's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Edesa Biotech's Liquidity
Edesa Biotech financial leverage refers to using borrowed capital as a funding source to finance Edesa Biotech ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Edesa Biotech 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 Edesa Biotech'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 Edesa Biotech'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 Edesa Biotech's total debt and its cash.
Edesa Biotech Gross Profit
Edesa Biotech Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Edesa Biotech 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 Edesa Biotech Gross Profit growth over the last 10 years. Please check Edesa Biotech's gross profit and other fundamental indicators for more details.
Another Deeper Perspective
The big decline in price over the last few months for Edesa Biotech could raise concerns from investors as the firm is trading at a share price of 1.80 on very low momentum in volume. The company management teams failed to add value to investors and position the firm supply of money to exploit market volatility in November. However, diversifying your holdings with Edesa Biotech or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 4.96. This high volatility is attributed to the latest market swings and not-so-good earnings reports for some of the Edesa Biotech partners.
Timing is everything, especially in the stock market. Edesa Biotech, a clinical-stage biopharmaceutical company listed on NASDAQ under the ticker EDSA, is drawing attention as a potential value entry point in January. With a market capitalization of $5.85 million and cash reserves of $12.81 million, the company is well-positioned to advance its promising pipeline, including its lead candidate EB05, which is in Phase 3 trials for treating acute respiratory distress syndrome in COVID-19 patients. Despite a challenging financial landscape, evidenced by a loss of $0.58 per share in the current quarter, the low probability of bankruptcy at 1.00% suggests resilience. Investors might find the current valuation appealing, especially with a Wall Street target price of $20.50, indicating significant upside potential..
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