27.6 Million
Total Debt
26.74 Million
Debt Non Current
27.6 Million
Total Debt USD
Chembio Diagnostics drops over 3 percent in spite of modest market rise
 | By Ellen Johnson | Macroaxis Story |
Today I will concentrate on Chembio Diagnostics. I will examine why in spite of current disturbance, the overall long-run investment perspective of the company is still stable. Chembio Diagnostics Invested Capital Average is most likely to increase significantly in the upcoming years. The last year's value of Invested Capital Average was reported at 38.03 Million. The current Tangible Asset Value is estimated to increase to about 49.6 M, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are estimated to decrease to (11.7 M). The entity moves slightly opposite to the market. What is Chembio Diagnostics Target Price Odds to finish over Current Price? In reference to a normal probability distribution, the odds of Chembio Diagnostics to move above the current price in 30 days from now is more than 93.0%. The Chembio Diagnostics probability density function shows the probability of Chembio Diagnostics Stock to fall within a particular range of prices over 30 days. Given the investment horizon of 30 days, Chembio Diagnostics has a beta of -0.7303 suggesting as returns on benchmark increase, returns on holding Chembio Diagnostics are expected to decrease at a much lower rate. During the bear market, however, Chembio Diagnostics is likely to outperform the market. Additionally, the company has an alpha of 0.8367, implying that it can generate a 0.84 percent excess return over DOW after adjusting for the inherited market risk (beta).
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 Gabriel Shpitalnik
This firm currently holds 25.65 M in liabilities with Debt to Equity (D/E) ratio of 1.41, which is about average as compared to similar companies. The company has a current ratio of 3.41, suggesting that it is liquid enough and is able to pay its financial obligations when due. The firm's average rating is Hold from 5 analysts. We provide buy or sell advice to complement the prevailing expert consensus on Chembio Diagnostics. Our dynamic recommendation engine makes use of a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
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 Chembio or Mannatech is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step. How important is Chembio Diagnostics's Liquidity
Chembio Diagnostics financial leverage refers to using borrowed capital as a funding source to finance Chembio Diagnostics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Chembio Diagnostics 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 Chembio Diagnostics' 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 Chembio Diagnostics' 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 Chembio Diagnostics's total debt and its cash.
Correlation Between Chembio and Mannatech Incorporated
In general, Delisted 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 Chembio Diagnostics together with similar or unrelated positions with a negative correlation. For example, you can also add Mannatech Incorporated to your portfolio. If Mannatech Incorporated is not perfectly correlated to Chembio Diagnostics 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 Chembio Diagnostics, 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 Chembio Diagnostics and Mannatech Incorporated in your portfolio? Please note if you are using this as a pair-trade strategy between Chembio Diagnostics and Mannatech Incorporated, 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 CEMI and MTEX for more information.Breaking it down
Chembio Diagnostics maintains market capitalization of 84.3 m. Chembio Diagnostics reported previous year revenue of 32.78 M. Net Loss for the year was (15.86 M) with profit before overhead, payroll, taxes, and interest of 3.53 M. Chembio Diagnostics has a beta of -0.7303. Let's try to break down what Chembio's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Chembio Diagnostics will likely underperform. The beta indicator helps investors understand whether Chembio Diagnostics moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Chembio deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The current indifference towards the small price fluctuations of Chembio Diagnostics could raise concerns from investors as the firm closed today at a share price of 3.65 on 8,447,104 in volume. The company directors and management did not add any value to Chembio Diagnostics investors in June. However, most investors can still diversify their portfolios with Chembio Diagnostics to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 11.8. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Chembio Diagnostics partners. Chembio Diagnostics Earnings before Tax is nearly stable at the moment. Chembio Diagnostics Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 8 years. Furthermore, Chembio Diagnostics Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years. The previous year's value of Chembio Diagnostics Earnings Before Interest Taxes and Depreciation Amortization EBITDA was -11,712,722.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
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 Ellen Johnson do not own shares of Chembio Diagnostics. Please refer to our Terms of Use for any information regarding our disclosure principles.