By analyzing existing fundamental indicators between Genocea Biosciences and DiaMedica, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in DiaMedica with a short position in Genocea Biosciences. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Genocea Biosciences has an asset utilization ratio of 0.72 percent. This suggests that the company is making $0.007195 for each dollar of assets. An increasing asset utilization means that Genocea Biosciences is more efficient with each dollar of assets it utilizes for everyday operations.
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 Genocea or Encore is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Genocea Biosciences's Liquidity
Genocea Biosciences
financial leverage refers to using borrowed capital as a funding source to finance Genocea Biosciences ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Genocea Biosciences 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 Genocea Biosciences' 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 Genocea Biosciences' 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 Genocea Biosciences's total debt and its cash.
Correlation Between Genocea and Encore Capital Group
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 Genocea Biosciences together with similar or unrelated positions with a negative correlation. For example, you can also add Encore Capital to your portfolio. If Encore Capital is not perfectly correlated to Genocea Biosciences 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 Genocea Biosciences, 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 Genocea Biosciences and Encore Capital in your portfolio? Please note if you are using this as a pair-trade strategy between Genocea Biosciences and Encore Capital, 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 GNCA and ECPG for more information.
Is Genocea Biosciences valued fairly 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 product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze Genocea Biosciences revenue. Based on the latest financial disclosure , Genocea Biosciences reported 596.25
K of revenue. This is 99.99% lower than that of the Healthcare sector and 99.92% lower than that of
Biotechnology industry. The revenue for all United States stocks is 99.99% higher than that of Genocea Biosciences. As for DiaMedica Therapeutics we see revenue of 447.37
K, which is 99.94% lower than that of the Biotechnology
| GNCA | 596,247 | 0.0801 |
| Sector | 742.91 Million | 99.86 |
| DMAC | 447,368 | 0.0601 |
Genocea Biosciences implied volatility may change after the build-up
Current semi variance is at 13.69. Genocea Biosciences is displaying above-average volatility over the selected time horizon. Investors should scrutinize Genocea Biosciences independently to ensure intended market timing strategies are aligned with expectations about Genocea Biosciences volatility.
Our Conclusion on Genocea Biosciences
Whereas some other firms under the biotechnology industry are still a bit expensive, Genocea Biosciences may offer a potential longer-term growth to investors. To summarize, as of the 25th of July 2020, our analysis shows that Genocea Biosciences slowly supersedes the market. The company is
undervalued and projects
quite high probability of distress for the next 2 years. Our latest 30 days buy-or-sell advice on the company is
Cautious Hold.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Genocea Biosciences. Please refer to our
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