Every dog has its day, and for Jaguar Animal Health, May might just be the month to watch. As a player in the biotechnology sector, the company is navigating a challenging landscape with a net invested capital of $42.8 million. Despite grappling with a free cash flow loss of $29.4 million, the buzz around its potential breakthrough is palpable. Investors are keenly eyeing the company's strategic maneuvers, hoping for a turnaround that could redefine its market position. With analysts maintaining a strong buy consensus, the stakes are high, and the anticipation is building. Jaguar Animal Health's stock is seeing higher-than-usual trading activity. Currently, the company's Days Payables Outstanding remains steady compared to last year. By 2025, the Intangibles to Total Assets ratio is expected to increase to 0.63, while Days Sales Outstanding may decrease to 48.86. With growing interest in the pharmaceutical sector, Jaguar Animal Health stands out as a distinctive option. It's worth examining whether the company can sustain its current debt levels by May.
Jaguar Animal financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Jaguar Animal, including all of Jaguar Animal's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Jaguar Animal assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Jaguar Animal debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
How important is Jaguar Animal's Liquidity
Jaguar Animal
financial leverage refers to using borrowed capital as a funding source to finance Jaguar Animal Health ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Jaguar Animal 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 Jaguar Animal'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 Jaguar Animal'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 Jaguar Animal's total debt and its cash.
What is driving Jaguar Animal Investor Appetite?
The big decline in price over the last few months for Jaguar Animalmay raise some interest from investors. The stock closed today at a share price of
10.91 on very low momentum in trading volume. The company directors and management failed to add value to investors and position the firm supply of money to exploit market volatility in
March. However, diversifying your holdings with Jaguar Animal Health or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 9.98.
The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Jaguar Animal Health partners.
Asset Breakdown
22.4 M
Non Current Assets Total
12.8 M
Other Current Assets
| Total Assets | 33.94 Million |
| Net Tangible Assets | (10.43 Million) |
| Other Assets | 1.09 |
| Other Current Assets | 12.81 Million |
| Total Current Assets | 33.81 Million |
| Intangible Assets | 20.06 Million |
| Non Current Assets Total | 22.45 Million |
| Non Currrent Assets Other | 1.28 Million |
Fortune favors the bold, and Jaguar Animal Health might just be on the brink of a significant shift. With a current ratio of 1.02, the company is barely maintaining its ability to cover short-term liabilities, indicating a tight liquidity position. Despite a market capitalization of only 7.35 million, the company's potential upside of 9.78 suggests that investors see room for growth. However, with a staggering probability of bankruptcy at 95.89%, any investment in Jaguar Animal Health carries substantial risk. As the company navigates its financial challenges, investors should weigh the potential rewards against the evident risks..
Our perspective of the current Jaguar Animal rise
Jaguar Animal Health's stock has recently piqued investor interest, particularly with its market risk-adjusted performance indicator at -0.29. While this negative figure might initially seem concerning, it could also hint at an undervaluation, suggesting a potential for price recovery. Savvy investors might view this as an opportunity to invest before the market adjusts its perception of Jaguar Animal Health's value.
The stock is experiencing higher-than-average volatility, which can be both a challenge and an opportunity. Understanding these volatility patterns can help investors make informed decisions about timing their trades.
During bear markets, increased volatility can lead to significant price swings, prompting investors to reassess and diversify their portfolios to mitigate risk.As we look ahead to May, Jaguar Animal Health presents an intriguing opportunity for investors willing to navigate its potential volatility. With an Analyst Overall Consensus of "Strong Buy" and a Posible Upside Price of
20.63, the stock could offer significant returns for those who are patient and strategic. However, it's crucial to weigh these prospects against the Posible Downside Price of
0.67, which underscores the inherent risks. Investors should stay informed and consider their risk tolerance before making any decisions, as the company's performance in the coming months will be pivotal in determining its trajectory..
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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