With a potential upside of
19.23%, now is the perfect moment to jump on the CareMax stock bandwagon, especially as it trades at a low price of just
6.39. Despite facing a projected loss of 27.8 this year, the stock's impressive Jensen Alpha of 3.11 suggests that savvy investors could reap significant rewards as the company navigates the health information services industry.
Main Points
The asset utilization indicator measures the revenue generated for every dollar of assets a company reports. CareMax has an asset utilization ratio of 120.5%, indicating that the company earns $1.21 for each dollar of assets. An increasing asset utilization ratio suggests that CareMax is becoming more efficient with its asset use in daily operations. However, the company has a profit margin of -0.8%, indicating potential issues with its pricing strategies or operational cost control, which is significantly below average. Additionally, CareMax's operating margin is -0.09%, meaning it incurs a net operating loss of $0.09 for every $100 in sales.
The successful prediction of CareMax
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as CareMax, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of CareMax based on CareMax hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to CareMax's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to CareMax's related companies.
Watch out for price decline
Please consider monitoring CareMax on a daily basis if you are holding a position in it. CareMax 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 CareMax stock to be traded above the $1 level to remain listed. If CareMax 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.
Use Technical Analysis to project CareMax expected Price
CareMax technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of CareMax technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of CareMax trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...CareMax Gross Profit
CareMax Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing CareMax 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 CareMax Gross Profit growth over the last 10 years. Please check CareMax's
gross profit and other
fundamental indicators for more details.
Breaking down CareMax Indicators
The current price rise of CareMax could raise concerns from investors as the firm is trading at a share price of
6.39 on very low momentum in volume. The company management teams may have good odds in positioning the firm resources to exploit market volatility in
August. The stock standard deviation of daily returns for 90 days investing horizon is currently 32.47. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the CareMax partners.
Current Deferred Revenue Breakdown
CareMax Current Deferred Revenue yearly trend continues to be fairly stable with very little volatility. Current Deferred Revenue will likely drop to about 6.3
M in 2024. Current Deferred Revenue usually refers to revenue that has been collected but not yet earned, typically from prepaid service contracts or subscriptions. This amount is considered a liability until the service is provided or the subscription period ends. At this time, CareMax's Current Deferred Revenue is fairly stable compared to the past year.
| 2010 | 2.76 Million |
| 2021 | 8.69 Million |
| 2023 | 9.99 Million |
| 2024 | 6.3 Million |
The market often rewards those who buy low and sell high, making timing crucial in investment decisions. CareMax stock has recently generated considerable attention, but investors should tread carefully. With a current valuation of $486.17 million and a market capitalization of just $24.3 million, the company faces significant challenges, including losses in return on equity of 2.3 and an alarming probability of bankruptcy at 96.00%. Despite a relatively strong current ratio of 6.06X and cash and equivalents of $68.13 million, the underlying financial metrics, such as a gross profit of $80.3 million against total debt of $491.93 million, suggest caution. As the stock hovers around a day typical price of $6.89, potential upside remains at 19.23%, but investors must weigh the risks before making any decisions in August.
Over 3 percent rise for CareMax. What does it mean for investors?
CareMax's stock has recently seen a significant increase in skewness, now exceeding 5.98, indicating pronounced asymmetry in its return distribution. This heightened skewness suggests increased volatility and potential for larger price movements, presenting both opportunities and risks for investors. A skewness above 5 typically indicates a greater likelihood of extreme returns, making it essential for investors to assess their risk tolerance and investment strategy carefully. As CareMax navigates its growth trajectory, understanding these dynamics is crucial for informed trading decisions.
The stock's volatility can impact its price, especially during bear markets, adding stress for investors as they watch their shares decline. This often leads to portfolio rebalancing as investors seek to mitigate losses.Investing in CareMax (CMAX) presents a complex picture as we head into August. With a current valuation market value of
6.39 and an analyst overall consensus rating of "Hold," potential investors should tread carefully. The stock's estimated EPS for the current year stands at a concerning -27.8, indicating significant challenges ahead. Furthermore, the possible downside price is alarmingly low at
0.0639, while the analyst target price suggests limited upside potential, with estimates ranging from a low of 4.73 to a high of 5.77. Given these factors, it may be prudent to adopt a cautious approach and closely monitor developments before making any investment decisions in CareMax..
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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 CareMax. Please refer to our
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