| 2020 | 2021 | 2022 | 2023 (projected) | Revenues USD | 64.4M | 85.8M | 61.8M | 66.7M | Revenues | 64.4M | 85.8M | 61.8M | 66.7M |
Ownership Breakdown
| Retail Investors90.61% | Institutions8.52% |
| Retail Investors | 90.61 | |
| Insiders | 0.87 | |
| Institutions | 8.52 |
Will Redhill Biopharma (USA Stocks:RDHL) turn things around in January?
 | By Gabriel Shpitalnik | Macroaxis Story |
Redhill Biopharma (RDHL), a player in the Drug Manufacturers - Specialty & Generic industry, has been making strides in its product pipeline, despite a challenging financial performance with an operating margin of -2.45 and a diluted EPS of -8.0. However, the company's enterprise value revenue ratio of 0.64 and book value of 1.09 suggest underlying value. The firm's significant investment in R&D, reflected in its $71.7M loss before tax, could potentially lead to breakthroughs and a turnaround in its financial performance.
Important Highlights
Redhill Biopharma is currently undervalued, trading at $11.05 per share, with modest growth projections on the horizon. The company has a performance score of 10 on a scale from zero to one hundred. Redhill Biopharma's Beta is -2.6052, indicating a relatively high level of risk compared to the market. This suggests that as market returns increase, returns on Redhill Biopharma are likely to decrease at a greater rate. Conversely, during periods of market instability, Redhill Biopharma is expected to outperform the market. To analyze future returns on Redhill Biopharma, consider the company's variance, as well as the relationship between the maximum drawdown and semi-variance.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 Michael Smolkin
The healthcare sector is often a haven for investors seeking both growth and stability, and Redhill Biopharma (RDHL) could be one such hidden gem. Operating in the pharmaceuticals industry, Redhill has a robust product portfolio backed by a team of 113 full-time employees. Despite a challenging year marked by a net income loss of $71.7M and a quarterly revenue decline of 0.9%, the company's enterprise value stands strong at $1.9B, reflecting its potential for a comeback. Analysts see a possible upside price of $34.51, significantly higher than its current market value of $1.49. With a single strong buy recommendation and an estimated target price of $40, Redhill Biopharma could be poised for a significant rebound. However, investors should be aware of the company's negative return on equity of -8.84, indicating potential risks alongside the promising rewards. At present, Redhill Biopharma's Price to Sales Ratio remains relatively stable compared to the previous year. The Return on Average Equity is projected to increase to 2.77 this year, although the value of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is likely to decrease to ($37.4 million). As interest in the pharmaceutical sector grows, it is prudent to examine Redhill Biopharma in more detail. Despite current challenges, there is still confidence in a swift recovery. In this article, I will also highlight some technical indicators that investors should consider in January.The performance of Redhill Biopharma 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 Redhill Biopharma's stock prices. When investing in Redhill Biopharma, 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, Redhill 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 Redhill Biopharma 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.
How important is Redhill Biopharma's Liquidity
Redhill Biopharma financial leverage refers to using borrowed capital as a funding source to finance Redhill Biopharma ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Redhill Biopharma 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 Redhill Biopharma'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 Redhill Biopharma'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 Redhill Biopharma's total debt and its cash.
Redhill Biopharma Gross Profit
Redhill Biopharma Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Redhill Biopharma 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 Redhill Biopharma Gross Profit growth over the last 10 years. Please check Redhill Biopharma's gross profit and other fundamental indicators for more details.
What is the case for Redhill Biopharma Investors
Redhill Biopharma owns a total of nineteen million six hundred seventy-four thousand six hundred outstanding shares. Roughly 91.0 pct. of Redhill Biopharma outstanding shares are held by general public with 0.87 % owned by insiders and only 8.52 (%) by third-party entities. Please note that no matter how much assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.
In the world of finance, it's often said that "the time to buy is when there's blood in the streets." Redhill Biopharma (USA Stocks:RDHL), a specialty and generic drug manufacturer based in Tel Aviv, Israel, seems to be a case in point.Despite a net loss of $71.7M and a negative operating margin of 2.45%, the company's potential upside of 34.38 and a target price of $40 indicate a potential for a strong comeback. The company's high beta of 3.64 suggests it's more volatile than the market, but this could work in favor of risk-tolerant investors seeking significant returns. Moreover, the fact that 8.52% of the company's shares are owned by institutions, and 0.87% by insiders, shows a level of confidence in the company's future prospects. While Redhill Biopharma's recent performance might raise eyebrows, it's worth remembering that in the stock market, today's losses could be tomorrow's gains. .
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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 Gabriel Shpitalnik do not own shares of Redhill Biopharma. Please refer to our Terms of Use for any information regarding our disclosure principles.