Enzo Biochem (ENZ), a key player in the Diagnostics & Research industry, has been struggling with a negative profit margin of -0.64 and an EBITDA loss of $41M. Despite these challenges, the company has managed to maintain a healthy cash flow of $14.3M at the beginning of the period and an increase in cash of $8.3M. As of the latest update on October 25, 2023, the company holds $21.6M in cash and short-term investments. While the quarterly revenue growth has dipped by -0.39, the company still managed to generate revenue of $71M with a gross profit of $42M. The stock, traded on the NYSE, has a book value of 0.381 and a 50-day moving average of 1.448. The question now is whether Enzo Biochem can emulate the impressive stock rally of DarioHealth Corp. Despite the negative earnings per share of -0.94, the company has a naive expected forecast value of 1.3 and a valuation real value of 1.42, indicating a potential upside. However, with a possible downside price of 0.0138 and a dividend yield of 0.0114, investors should approach with caution. One analyst has given a strong buy recommendation, suggesting some confidence in the stock's potential. Many investors are growing increasingly interested in the healthcare providers and services sector. However, Enzo Biochem and DarioHealth Corp appear to be heading in different directions. We will examine some of the competitive aspects of both Enzo Biochem and DarioHealth.
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 Enzo or Fonar is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Enzo Biochem's Liquidity
Enzo Biochem
financial leverage refers to using borrowed capital as a funding source to finance Enzo Biochem ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Enzo Biochem 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 Enzo Biochem'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 Enzo Biochem'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 Enzo Biochem's total debt and its cash.
Correlation Between Enzo 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 Enzo Biochem 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 Enzo Biochem 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 Enzo Biochem, 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 Enzo Biochem and Fonar in your portfolio? Please note if you are using this as a pair-trade strategy between Enzo Biochem 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 ENZ and FONR for more information.
Breaking it down a bit more
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 Enzo Biochem revenue. Based on the latest financial disclosure, Enzo Biochem reported 107.07
M of revenue. This is 98.6% lower than that of the Health Care Providers & Services sector and 94.6% lower than that of the
Health Care industry. The revenue for all United States stocks is 98.87% higher than that of Enzo Biochem. As for DarioHealth Corp we see revenue of 27.66
M, which is 98.6% lower than that of the Health Care
| ENZ | 107.07 Million | 5.06 |
| Sector | 1.98 Billion | 93.63 |
| DRIO | 27.66 Million | 1.31 |
Enzo Biochem (ENZ), a player in the Diagnostics & Research industry, has been showing some interesting financial metrics that could suggest a potential for a stock rally similar to that of DarioHealth Corp.
Despite the company's high probability of bankruptcy at 75.70%, it has a solid book value of 0.381 and a price to book ratio of 1.36X. These figures suggest that the company's assets are undervalued, providing room for potential growth. The company's total assets stand at
$95.86M, with cash and cash equivalents amounting to $21.6M. The end period cash flow is $22.6M, which, coupled with the company's working capital of $29.8M, suggests that Enzo Biochem has the financial capacity to meet its current liabilities of $20.57M. However, the company's operating margin stands at -0.97, indicating losses in its operations. This is further reflected in the company's EBITDA, which stands at a loss of $41M. Additionally, the company's return on equity is at -1.12, indicating a negative return on investments. The Wall Street target price for Enzo Biochem is
$5.5, which, compared to its 50-day moving average of $1.448, suggests a significant potential upside. However, investors should also consider the company's high downside deviation of 2.64 and downside variance of 6.97, indicating a high risk of potential losses. .
Some Enzo technical indicators suggest throwback
Enzo Biochem's current Risk-Adjusted Performance has experienced a minor increase to 0.02, suggesting a slight enhancement in the company's risk-return trade-off. However, despite this positive shift, certain technical indicators are signaling a potential price pullback. Investors should proceed with caution as the stock price may experience a decline, reflecting a throwback pattern. This implies that the stock's recent gains could be short-lived, and a reversal may be imminent. Enzo Biochem currently exhibits a below-average downside deviation. It has an Information Ratio of 0.06 and a Jensen Alpha of 0.11. However, we recommend investors to further scrutinize Enzo Biochem's expected returns to ensure all indicators align with the current outlook about its relatively low value at risk. Understanding various
market volatility trends often assists investors in timing the market. Proper utilization of volatility indicators allows traders to measure Enzo Biochem's stock risk against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly affect
Enzo Biochem's stock price, adding stress to investors as they witness their shares' value decrease. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop.
Our Final Take On Enzo Biochem
While some other companies in the diagnostics & research industry are either recovering or due for a correction, Enzo may not be as strong as the others in terms of longer-term growth potentials. While some investors may not share our view, we believe that right now is not a good time to increase your holdings in Enzo. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Enzo Biochem.
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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 Enzo Biochem. Please refer to our
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