Assure Holdings Corp (NASDAQ), a key player in the Health Care Equipment & Supplies sector, has been demonstrating strong potential for growth despite the challenges it has faced. With a market capitalization of just $1.9M, the company's enterprise value stands at a significant
$12.9M, suggesting an undervalued position in the market. This is further supported by its Price to Sales ratio of 0.29X, which is considerably lower than the industry average. However, the company's
financial health has been a concern, with a net income loss of
$30.1M and an operating margin of -3.54. This is reflected in its Z Score of -4.25, indicating a high probability of bankruptcy at 96.00%. Despite these figures, the company's working capital stands at a healthy $16.42M, providing some financial stability. The company's stock is primarily held by insiders, who own 18.42% of the shares, while institutions hold 4.88%. This suggests a level of confidence in the company's
future prospects among those closest to its operations. With a target price of $4, there is potential for significant upside for investors willing to maintain their position in Assure Holdings Corp. In conclusion, while Assure Holdings Corp has faced financial challenges, its undervalued position and the confidence shown by insiders suggest potential for future growth. Investors should consider maintaining their position in the company, with the possibility of substantial upside ahead. While some millennials may be indifferent towards the healthcare equipment and supplies sector, it's worthwhile to revisit Assure Holdings Corp. What exactly can Assure Holdings' shareholders expect in December? Is the company's valuation justified? In this article, we will explore Assure Holdings Corp's perspective on valuation to provide you with a better understanding before deciding to invest in this stock.
We determine the current worth of Assure Holdings Corp using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Assure Holdings Corp based exclusively on its
fundamental and basic
technical indicators. By analyzing Assure Holdings's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Assure Holdings's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Assure Holdings. We calculate exposure to Assure Holdings's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Assure Holdings's related companies.
Watch out for price decline
Please consider monitoring Assure Holdings on a daily basis if you are holding a position in it. Assure Holdings is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted 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 Assure Holdings stock to be traded above the $1 level to remain listed. If Assure Holdings 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.
Assure Holdings Corp Investment Alerts
Assure investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Assure Holdings Corp performance across your portfolios.Please check all
investment alerts for Assure
Assure Holdings Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Assure value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Assure Holdings competition to find
correlations between indicators driving the intrinsic value of Assure.
Breaking it down a bit more
Assure Holdings Corp price decline over the last few months may raise some interest from insiders. The stock closed today at a share price of
0.26 on
195,100 in trading volume. The company directors and management were not very successful in positioning the firm resources to exploit
market volatility in
October. However, diversifying your holdings with Assure Holdings Corp or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 8.1. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Assure Holdings partners.
Margins Breakdown
Assure profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Assure Holdings itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Assure Holdings profit margins.
| EBITDA Margin | (2.26) |
| Gross Margin | (0.39) |
| Profit Margin | (2.82) |
Assure Holdings Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 6 years.
Moreover, Assure Holdings Average Equity is increasing over the last 5 years. The great Warren Buffet once said, "Price is what you pay. Value is what you get." This wisdom rings true for Assure Holdings Corp, a player in the Medical Care Facilities industry. Despite a challenging fiscal year, with a net income loss of $30.1M and a negative return on equity of 2.75%, there are signs of potential upside. The company's forward PE stands at a modest 3.88, suggesting that the stock may be undervalued. Moreover, the company's target price stands at $4, indicating a potential upside of 13.33%. While the company's high probability of bankruptcy at 96.00% and a Z score of -4.25 signal risk, the current ratio of 6.62X indicates a strong ability to meet short-term obligations. Therefore, maintaining your position in Assure Holdings Corp could prove beneficial in the long run. .
Will Assure Holdings continue to go nuts?
The recent skewness metric of Assure Holdings Corp has decreased to 0.31, indicating a reduced degree of asymmetry in the stock's return distribution. This suggests a more normalized pattern of returns, implying a potential moderation in the stock's previously erratic movements. Although the company has experienced a tumultuous journey, the current skewness level may signal a shift towards a more balanced performance. However, investors should monitor other market indicators and the company's
fundamentals to ascertain whether Assure Holdings will maintain its volatility or transition into a more predictable pattern. Assure Holdings Corp is exhibiting above-average volatility over the chosen time horizon. Investors should independently scrutinize Assure Holdings Corp to ensure that their intended
market timing strategies align with expectations about the company's volatility. Assure Holdings Corp could potentially be classified as a penny stock. While Assure Holdings may indeed be a viable investment, many penny stocks are speculative and subject to artificial price inflation. Investors are urged to fully understand the potential gains and risks associated with investing in Assure Holdings Corp. We advise investors to be wary of signals such as unsolicited emails, message board hype, claims of breakthroughs, sudden increases in volume, unexpected news releases, unreported promotions, or demotions released before SEC filings. It is also recommended to check the biographies and employment history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with a microcap classification.
Investors can indeed profit from Assure Holdings Corp if they time their entry and exit perfectly. However, it's important to remember that penny stocks that have been artificially hyped typically cannot sustain 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 increase shareholder value is through legitimate performance supported by solid fundamentals. In light of the recent 10% decline in Assure Holdings Corp's stock, it's crucial to carefully evaluate the investment potential. The
analyst consensus currently stands at a
Strong Buy, with a single analyst providing an estimated target price of
$4. This suggests a potential upside from the current valuation, which is significantly lower at
$0.26. However, it's worth noting that the possible downside price is a mere
$0.0026, indicating a substantial risk factor. While the valuation hype value and market value are identical at
$0.26, the real value is estimated to be
$1.19. The naive expected forecast value is
$0.3, which, along with the fiscal year end in December, should be taken into account. Despite the recent downturn, Assure Holdings Corp may still offer potential for growth, but investors should exercise caution due to the inherent risks. .
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
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 Assure Holdings Corp. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
[email protected]