Biofrontera AG American shows a negative utilization of assets of -33.41 percent, losing $0.3341 for each dollar of assets held by the firm. Inadequate asset utilization signifies that the company is being less effective with each dollar of assets it shows. Put another way asset utilization of Biofrontera AG American shows how discouraging it operates for each dollar spent on its assets. The company has Profit Margin (PM) of (33.04) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average.
Biofrontera
financial leverage refers to using borrowed capital as a funding source to finance Biofrontera AG ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Biofrontera 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 Biofrontera'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 Biofrontera'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 Biofrontera's total debt and its cash.
To perform a cash flow analysis of Biofrontera, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Biofrontera is receiving and how much cash it distributes out in a given period. The Biofrontera cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Biofrontera preserves 134.55 m of current valuation. The entity reported previous year revenue of 18.63
M. Net Loss for the year was (17.53
M) with profit before overhead, payroll, taxes, and interest of 26.39
M. The modest gains experienced by current holders of Biofrontera could raise concerns from investors as the firm closed today at a share price of
6.0 on
390.00 in volume. The company management have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in
June. The stock standard deviation of daily returns for 30 days investing horizon is currently 4.79. This high volatility is attributed to the latest market swings and not so good earnings reports for some of the Biofrontera partners.
Biofrontera Average Assets is somewhat stable at the moment.
Will Biofrontera current slip continue?
Coefficient Of Variation just dropped to -6433.55, may suggest upcoming price decrease. Biofrontera AG American exhibits very low volatility with skewness of -0.14 and kurtosis of 4.05. However, we advise investors to further study Biofrontera AG American technical indicators to make sure all market info is available and is reliable.
Our Conclusion on Biofrontera
Whereas many of the other players under biotechnology industry are still a bit expensive, Biofrontera may offer a potential longer-term growth to investors. To conclude, as of 9th of July 2020, our analysis shows that Biofrontera moves slightly opposite to the market. The company is
undervalued and projects
very high probability of distress for the next 2 years. However, our latest 30 days 'Buy vs Sell' recommendation on the company is
Strong Sell. The inconsistency in the assessment between current Biofrontera valuation and our trade advice on Biofrontera 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 Biofrontera.
Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of Biofrontera AG. Please refer to our
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