By examining the fundamental indicators between Vyne Therapeutics and Equillium, we can compare the impact of market volatility on the prices of both companies. This analysis can help determine if combining these companies in a single portfolio could diversify away market risk. Pair trading strategies can also be utilized, such as matching a long position in Equillium with a short position in Vyne Therapeutics. For more information, please refer to our
pair correlation module.
Now, let's analyze the assets. The asset utilization indicator measures the revenue generated for every dollar of assets a company currently holds. Vyne Therapeutics has an asset utilization ratio of 1.17 percent, which means the company generates $0.0117 for each dollar of assets. An increasing asset utilization ratio indicates that Vyne Therapeutics is becoming more efficient in using each dollar of assets for its daily operations.
Further analysis
Vyne Therapeutics (VYNE) may be an intriguing choice for Equillium shareholders looking to diversify their portfolio. Despite the company's negative EPS estimates for both the current and next year, standing at
-3.15 and
-2.11 respectively, the firm's substantial begin period cash flow of
$42.9M signals potential for future growth. The biotechnology industry is known for its high risk, high reward nature, and Vyne's mean deviation of 5.17 indicates a higher volatility compared to other sectors. However, with the company's last price standing at $5.6, the risk-adjusted performance of 0.0415 shows a promising return potential. Investors should bear in mind that while Vyne's financials may currently reflect a loss, the company's significant cash flow could provide the necessary capital for research and development, potentially leading to profitable breakthroughs in the future.
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 Vyne or Akari is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Vyne Therapeutics's Liquidity
Vyne Therapeutics
financial leverage refers to using borrowed capital as a funding source to finance Vyne Therapeutics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Vyne Therapeutics 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 Vyne Therapeutics' 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 Vyne Therapeutics' 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 Vyne Therapeutics's total debt and its cash.
Correlation Between Vyne and Akari Therapeutics PLC
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 Vyne Therapeutics together with similar or unrelated positions with a negative correlation. For example, you can also add Akari Therapeutics to your portfolio. If Akari Therapeutics is not perfectly correlated to Vyne Therapeutics 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 Vyne Therapeutics, 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 Vyne Therapeutics and Akari Therapeutics in your portfolio? Please note if you are using this as a pair-trade strategy between Vyne Therapeutics and Akari Therapeutics, 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 VYNE and AKTX 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
Lets now check Vyne Therapeutics revenue. Based on the latest financial disclosure, Vyne Therapeutics reported 477
K of revenue. This is 99.99% lower than that of the Biotechnology sector and 99.94% lower than that of the
Health Care industry. The revenue for all United States stocks is 99.99% higher than that of the company. As for Equillium we see revenue of 15.76
M, which is 97.88% lower than that of the Health Care
| VYNE | 477,000 | 0.0628 |
| Sector | 742.91 Million | 97.86 |
| EQ | 15.76 Million | 2.08 |
Vyne Therapeutics (NASDAQ: VYNE) is a biotechnology company that has attracted the attention of Equillium shareholders due to its recent performance.
Vyne's current ratio stands at an impressive 7.60X, showing the company's strong ability to cover its short-term liabilities. However, the company's earnings per share (EPS) estimates for the current year and next quarter stand at a loss of $3.15 and $2.64 respectively, reflecting potential financial instability. The firm has a market capitalization of
$16.13M and a book value of 8.08, which when compared to its price to book ratio of 0.24X, suggests the stock might be undervalued. However, Vyne's operating margin stands at a significant loss of 79.09, indicating the company's struggle to turn a profit from its operations. Vyne's shares are primarily held by institutions, accounting for 11.00% of the total, with insiders holding a smaller 1.40%. The company's risk-adjusted performance is 0.0415, suggesting that the stock carries a fair amount of risk. This is further evidenced by the company's beta of 1.35, which indicates that the stock is more volatile than the market. Lastly, it's worth noting that Vyne Therapeutics has a high probability of bankruptcy at
96.00%. This, combined with its negative earnings and cash flow figures, suggests that Equillium shareholders should proceed with caution when considering this potential investment. .
Will Vyne Therapeutics latest surge continue?
The recent statistical analysis of Vyne Therapeutics reveals a drop in kurtosis to 1.75, indicating a less extreme distribution of returns and potentially less risk for investors. This could be a positive sign for those considering investing in the company, as it suggests a lower probability of extreme price swings. However, whether the recent surge in Vyne Therapeutics' stock will continue depends on a variety of factors, including the company's forthcoming financial results, market sentiment, and broader economic conditions. As always, investors are advised to conduct thorough research and consider their risk tolerance before making investment decisions. Vyne Therapeutics is exhibiting above-average volatility over the selected time horizon. Investors should scrutinize Vyne Therapeutics independently to ensure their intended
market timing strategies align with expectations about the company's volatility. Understanding different
market volatility trends can often help investors time the market. Proper use of volatility indicators allows traders to measure Vyne Therapeutics' stock risk against market volatility during both bullish and bearish trends.
The higher level of volatility that accompanies bear markets can directly impact
Vyne Therapeutics' stock price, adding stress to investors as they watch the value of their shares plummet. This typically prompts investors to rebalance their portfolios by purchasing different stocks as prices fall. In conclusion, Vyne Therapeutics (VYNE) has shown a remarkable performance with a rise of over 13 percent, even amidst a slight market downturn. The stock currently holds a real value of
13.11 and a market value of
5.6, indicating a potential for significant growth. The
analyst consensus leans towards a 'Buy' with three strong buy recommendations out of three estimates. The highest estimated target price stands at an impressive
71.941, with a possible upside price of 12.29. However, investors should also consider the lowest estimated target price of 9 and a possible downside price of 0.056. Overall, Vyne Therapeutics presents a promising investment opportunity with potential for substantial returns. .
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Vyne Therapeutics. Please refer to our
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