Every cloud has a silver lining, and for Lexaria Bioscience Corp, the current financial landscape might just be that. As a player in the biotechnology sector, Lexaria is navigating through a challenging phase with a net income loss of 5.8 million. Despite this, the company boasts a robust current ratio of 40.09X, indicating a strong liquidity position that could provide a cushion during turbulent times. With its innovative approach in the healthcare category, Lexaria might be poised to turn these challenges into strategic opportunities, leveraging its financial resilience to explore new growth avenues. Currently, Lexaria Bioscience's Return on Invested Capital (ROIC) remains steady compared to last year. By 2025, the Payables Turnover is expected to increase to 9.06, while Days Sales Outstanding may decrease to 25.03. If you've been monitoring Lexaria Bioscience, you might agree that it might not be the ideal moment to invest. The company tends to move in line with market trends. However, it's worth considering Lexaria as a potential addition to your investment portfolio.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Lexaria Bioscience income statement, its balance sheet, and the statement of cash flows. Potential Lexaria Bioscience investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Lexaria Bioscience investors may use each financial statement separately, they are all related. The changes in Lexaria Bioscience's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Lexaria Bioscience's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Lexaria Bioscience
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Lexaria Bioscience performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Lexaria Bioscience shares is the value that is considered the true value of the share. If
the intrinsic value of Lexaria is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Lexaria Bioscience. Please read more on our
fundamental analysis page.
How effective is Lexaria Bioscience in utilizing its assets?
Lexaria Bioscience Corp reports assets on its Balance Sheet. It represents the amount of Lexaria resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Lexaria Bioscience aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Biotechnology space. To get a better handle on how balance sheet or income statements item affect Lexaria volatility, please check the breakdown of all its
fundamentals.
Are Lexaria Bioscience Earnings Expected to grow?
The
future earnings power of Lexaria Bioscience involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Lexaria Bioscience factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Lexaria Bioscience
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Lexaria
expected earnings.
Lexaria Bioscience Gross Profit
Lexaria Bioscience Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Lexaria Bioscience 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 Lexaria Bioscience Gross Profit growth over the last 10 years. Please check Lexaria Bioscience's
gross profit and other
fundamental indicators for more details.
Details
Lexaria Bioscience Corp reported the previous year's revenue of 464.28
K. Net Loss for the year was (5.81
M) with profit before overhead, payroll, taxes, and interest of 183.56
K.
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence Lexaria Bioscience's decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over Lexaria Bioscience's decisions due to their larger holdings.
| 2022 | 2023 | 2024 | 2025 (projected) |
Begin Period Cash Flow | 5.8M | 1.4M | 1.6M | 1.8M | End Period Cash Flow | 1.4M | 6.5M | 7.5M | 7.8M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Lexaria Bioscience has an asset utilization ratio of 5.24 percent. This suggests that the Company is making $0.0524 for each dollar of assets. An increasing asset utilization means that Lexaria Bioscience Corp is more efficient with each dollar of assets it utilizes for everyday operations.
| | Total Current Assets9.5 M | | | Net Tangible Assets5.5 M |
| Non Current Assets Total | 1.32 Million | 7.13 |
| Other Current Assets | 1.43 Million | 7.77 |
| Total Current Assets | 9.54 Million | 51.63 |
| Non Currrent Assets Other | 76,766.81 | 0.42 |
| Intangible Assets | 623,886 | 3.38 |
| Net Tangible Assets | 5.48 Million | 29.68 |
Every cloud has a silver lining, and for Lexaria Bioscience Corp, the current financial landscape might just be that. Despite reporting a net loss of 5.8 million, the company boasts a robust current ratio of 40.09X, indicating strong liquidity and the ability to cover short-term liabilities with ease. With cash reserves of 6.5 million, Lexaria is well-positioned to navigate its financial challenges and potentially capitalize on strategic opportunities in the biotechnology sector. While the probability of bankruptcy stands at a concerning 73.94%, the company's low debt-to-equity ratio of 0.01% suggests a conservative approach to leveraging, which could serve as a buffer during turbulent times. Investors should weigh these fundamentals carefully to determine whether Lexaria's current situation is a temporary setback or a chance for strategic growth.
Our take on Lexaria Bioscience small slide
Lexaria Bioscience Corp has seen a slight decline, with its risk-adjusted performance at -0.55. This indicates that the stock's returns aren't fully compensating for the risks involved. While this might be concerning, it's crucial to consider the company's innovative work in drug delivery technology, which holds promise for the future. Investors should balance this short-term performance with the company's strategic goals and growth potential before making decisions. Lexaria Bioscience shows low volatility, with a skewness of 1.72 and kurtosis of 6.03.
Understanding these volatility trends can help investors make informed decisions. During bear markets, increased volatility can affect Lexaria's stock price, prompting investors to adjust their portfolios by exploring other financial instruments as prices drop.Considering Lexaria Bioscience Corp's recent 1% dip, potential investors might see this as a minor fluctuation rather than a significant downturn. With an analyst consensus rating of "Buy" and a target price estimated at 10, there seems to be a promising upside for those willing to take a calculated risk. The company's valuation, with a real value of 4.13, suggests that the stock might be undervalued at its current levels. While the market can be unpredictable, Lexaria's potential for growth, highlighted by the analyst highest estimated target price of 11.1, could make it an attractive option for investors looking to capitalize on emerging opportunities in the bioscience sector..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of Lexaria Bioscience Corp. Please refer to our
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