By examining the fundamental indicators of Accolade and HealthStream, you can assess how market fluctuations impact their stock prices and determine if combining them in your portfolio could reduce risk. Consider pair trading by taking a long position in HealthStream and a short position in Accolade. For more details, check out our [pair correlation module]( '/invest/pair-correlation/ACCD/HSTM/Accolade-vs-HealthStream').
Let's take a closer look at the assets. The asset utilization ratio measures how much revenue a company generates for every dollar of assets it holds. Accolade's ratio stands at 52.57%, meaning it earns $0.53 per dollar of assets. A rising asset utilization ratio suggests Accolade is becoming more efficient in using its assets for daily operations.
Main Ideas
Accolade's current valuation of
281.51M coupled with a price-to-book ratio of just 0.65X suggests that the stock is trading at a significant discount, offering a compelling entry point for investors. Despite reporting a net income loss of
99.8M, the company's robust cash reserves of
330.63M provide a solid foundation for future growth and stability.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Accolade. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Accolade, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Accolade's Liquidity
Accolade
financial leverage refers to using borrowed capital as a funding source to finance Accolade ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Accolade 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 Accolade'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 Accolade'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 Accolade's total debt and its cash.
Accolade Gross Profit
Accolade Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Accolade previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Accolade Gross Profit growth over the last 10 years. Please check Accolade's
gross profit and other
fundamental indicators for more details.
Is Accolade valued correctly by the market?
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
Let me now analyze Accolade revenue. Based on the latest financial disclosure, Accolade reported 414.29
M of revenue.
This is 94.57% lower than that of the Health Care Technology sector and significantly higher than that of the
Health Care industry. The revenue for all United States stocks is 95.61% higher than that of Accolade. As for HealthStream we see revenue of 279.06
M, which is much higher than that of the Health Care
| Accolade | 414.29 Million |
| Sector | 0.0 |
| HealthStream | 279.06 Million |
Warren Buffett once said, "Be fearful when others are greedy and greedy when others are fearful." This sentiment rings true for Accolade, a company in the Health Information Services industry, which is currently trading near its 52-week low of 3.08. With a market capitalization of 277.05 million and a price-to-book ratio of 0.65, the stock appears undervalued, offering a potential entry point for investors willing to embrace some risk. Despite recent losses of 99.8 million, Accolade's robust net assets of 788.15 million and cash reserves of 330.63 million provide a solid foundation for future growth. As the company continues to innovate in healthcare technology, now might be the perfect time to consider adding Accolade to your portfolio..
Will Accolade pull back in February 2025?
Accolade's recent stock volatility, with a variance exceeding 8.2, has piqued investor interest, prompting discussions about its future direction. This increased fluctuation hints at a potential correction as February 2025 approaches. Investors should monitor market conditions and company updates, as these will likely impact whether Accolade experiences a pullback or maintains its current path. Balancing optimism with caution is key, considering both risks and rewards when assessing Accolade's stock in the coming months.
As of January 6th, Accolade has a mean deviation of 2.23 and a Risk Adjusted Performance of -0.02. Technical analysis can help identify patterns using historical prices and volume trends. Review Accolade's information ratio, potential upside, and the relationship between standard deviation and maximum drawdown to evaluate if the stock is fairly priced at $3.44 per share. With an information ratio of -0.04, it's advisable to assess Accolade's market performance to ensure its future sustainability.
Our Bottom Line On Accolade
Although some other entities in the health information services industry are either recovering or due for a correction, Accolade may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Accolade valuation and our trade advice on Accolade 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 Accolade.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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 Gabriel Shpitalnik do not own shares of Accolade. Please refer to our
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