Investing in IMAC Holdings (NASDAQ: BACK) presents a mixed picture, with a revenue per share of
7.72 but a concerning return on assets of -0.38, indicating challenges in generating profit from its assets. Additionally, the company's book value stands at -1.08, which may raise red flags for potential investors considering the financial health of the business.
Main Ideas
When looking at IMAC Holdings and InfuSystems, it's interesting to see how market fluctuations impact their stock prices. By combining these two companies in your portfolio, you might reduce overall market risk. You could also consider a pair trading strategy, where you take a long position in InfuSystems while shorting IMAC Holdings. For more details, check out our
pair correlation module.
Now, let’s dive into the numbers. IMAC Holdings boasts an impressive asset utilization ratio of 454.24%. This means the company generates $4.54 for every dollar of assets it has, indicating strong efficiency in its operations.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in IMAC Holdings. 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 IMAC Holdings, 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.
Watch out for price decline
Please consider monitoring IMAC Holdings on a daily basis if you are holding a position in it. IMAC Holdings is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as IMAC Holdings stock to be traded above the $1 level to remain listed. If IMAC Holdings stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is IMAC Holdings's Liquidity
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.
IMAC Holdings Gross Profit
IMAC Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing IMAC Holdings 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 IMAC Holdings Gross Profit growth over the last 10 years. Please check IMAC Holdings'
gross profit and other
fundamental indicators for more details.
Is IMAC Holdings valued adequately 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
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 IMAC Holdings. As for InfuSystems Holdings we see revenue of 125.78
M, which is much higher than that of the Health Care
| BACK | 5.2 Million | 3.97 |
| Sector | 0.0 | 0.0 |
| INFU | 125.78 Million | 96.03 |
In the world of investing, the age-old adage "don't put all your eggs in one basket" rings especially true when comparing stocks like IMAC Holdings (NASDAQ: BACK) and InfuSystem Holdings. IMAC has faced significant challenges, reporting a net income loss of 6.5 million and an operating income loss of 2.9 million, which raises concerns about its financial health. With a current ratio of 1.18X and total debt of 1.9 million, the company appears to be struggling to maintain liquidity. Additionally, its book value stands at -1.08, indicating that liabilities exceed assets, which could deter potential investors. While the stock has a potential upside of 10.49%, the high probability of bankruptcy at 96% suggests that retail investors should tread carefully when considering IMAC Holdings as a viable investment option..
IMAC Holdings bad news reports are not so bad
IMAC Holdings has recently faced a significant drop of 37.77%, but this setback might be a sign of resilience and a potential turnaround. While the decline raises concerns, it’s essential to look at the company’s overall operations and growth plans. The situation may not be as bleak as it appears, especially if IMAC can capitalize on its strengths to recover. This could be an attractive entry point for investors seeking to buy at a lower price before a rebound.
The stock has shown above-average volatility, which can help investors time their moves. By understanding market trends, traders can assess IMAC's risk compared to overall market fluctuations. Increased volatility during downturns can affect the stock price and create stress for investors, often leading them to adjust their portfolios as prices drop.
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.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of IMAC Holdings. Please refer to our
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