Not all that glitters is gold, especially when it comes to evaluating stocks like IMAC Holdings. Trading under the ticker BACK on NASDAQ, this company operates in the healthcare sector, specifically within medical care facilities. Despite its promising industry, IMAC Holdings faces significant financial challenges. With an EBITDA loss of 1.7 million and a quarterly revenue growth decline of 59%, the financial health of the company raises concerns. The earnings per share stand at a troubling loss of 5.03, and the book value is negative at 1.08, indicating potential risks for investors. While the market capitalization is a modest 2.4 million, the stock's valuation hype value of 1.28 suggests that market sentiment might not align with its real value of 9.56. Investors should tread carefully, considering both the potential downsides and the strategic opportunities that may arise from its current market position. Many investors are enthusiastic about the healthcare equipment and supplies sector. Let's take a closer look at the fundamentals of IMAC Holdings and Neuropace to see how they stack up. We'll examine the competitive strengths of both companies to understand their positions in the market.
Considering IMAC Holdings (NASDAQ: BACK), potential investors should note the company's challenging financial landscape, highlighted by a Free Cash Flow of Loss 2.8M and a Diluted EPS of Loss 5.03. Despite these hurdles, the stock's Wall Street Target Price of 8.25 suggests some optimism for future growth, making it a candidate for those with a higher risk tolerance seeking strategic opportunities in the Medical Care Facilities sector.
Main Ideas
By examining the fundamental indicators of IMAC Holdings and Neuropace, you can assess how market fluctuations impact their stock prices and determine if combining them in a portfolio might reduce risk. Pair trading strategies could be employed by taking a long position in Neuropace and a short position in IMAC Holdings. For more details, explore our [pair correlation module](#) to see how these stocks interact.
Now, let's dive into asset analysis. The asset utilization ratio measures how much revenue a company generates per dollar of assets. IMAC Holdings boasts an impressive asset utilization ratio of 454.24%, indicating it earns $4.54 for every dollar of assets. This high ratio suggests that IMAC Holdings is effectively leveraging its assets in daily operations.IMAC Holdings
financial leverage refers to using borrowed capital as a funding source to finance IMAC Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. IMAC Holdings 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 IMAC Holdings' 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 IMAC Holdings' 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 IMAC Holdings's total debt and its cash.
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 IMAC Holdings together with similar or unrelated positions with a negative correlation. For example, you can also add Novo Integrated to your portfolio. If Novo Integrated is not perfectly correlated to IMAC Holdings 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 IMAC Holdings, 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 IMAC Holdings and Novo Integrated in your portfolio? Please note if you are using this as a pair-trade strategy between IMAC Holdings and Novo Integrated, 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 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 products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check IMAC Holdings revenue. Based on the latest financial disclosure, IMAC Holdings reported 5.2
M of revenue.
This is 99.93% lower than that of the Health Care Equipment & Supplies sector and significantly higher than that of the
Health Care industry. The revenue for all United States stocks is 99.94% higher than that of the company. As for Neuropace we see revenue of 65.42
M, which is much higher than that of the Health Care
| BACK | 5.2 Million | 7.36 |
| Sector | 0.0 | 0.0 |
| NPCE | 65.42 Million | 92.64 |
Timing is everything, especially when it comes to investing. IMAC Holdings (NASDAQ: BACK), operating in the Medical Care Facilities sector, presents a complex picture for potential investors. With a current ratio of 1.18X, the company shows a modest ability to cover short-term liabilities, yet its financial health is overshadowed by a significant loss of 1.7 million in EBITDA. The stock's price action indicator at -0.09 suggests a downward trend, which, coupled with a high probability of bankruptcy at 96%, raises caution. However, for those with a high-risk tolerance, the Wall Street target price of $8.25 offers a potential upside, albeit with considerable risk..
Chances of IMAC Holdings to fall back
IMAC Holdings' stock has recently shown a decrease in volatility, with a variance of 28.54. This suggests that its price movements are becoming more stable, which might attract investors looking for less risk. However, stability doesn't automatically mean the stock will rise. It's crucial for investors to also consider the company's financial health and broader market conditions before making decisions. The stock's low volatility is further highlighted by a skewness of -0.78 and kurtosis of 3.31. While understanding these volatility trends can help investors time their trades, it's important to remember that high volatility in bear markets can negatively affect stock prices, prompting investors to adjust their portfolios to mitigate risk.
Our Final Take On IMAC Holdings
Whereas some companies in the medical care facilities industry are either recovering or due for a correction, IMAC may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current IMAC valuation and our trade advice on IMAC Holdings is due to the recent market swings and your selection of investing horizon. 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 IMAC Holdings.
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 IMAC Holdings. Please refer to our
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