The asset utilization indicator refers to the revenue generated for every dollar of assets a company currently reports. Neptune Wellness has an asset utilization ratio of 46.49 percent. This suggests that the company is generating $0.46 for each dollar of assets. An increase in asset utilization indicates that Neptune Wellness Solutions is becoming more efficient with each dollar of assets it uses for daily operations.
Extended review
Neptune Wellness Solutions (NEPT) has been making waves in the Drug Manufacturers-Specialty & Generic industry, but savvy investors need to dig deeper before making a decision. The company's latest financials reveal a concerning net income loss of
84.4M and an operating income loss of
88.5M, which is significantly higher than its total revenue of 48.8M. Despite a 52-week high of 3.74, the stock's last price was a mere 0.16, with a low of 0.11. The company's return on assets stands at -0.33, and its return on equity is at -1.46, both indicating negative profitability. Furthermore, the quarterly revenue growth is at -0.17, signaling potential financial instability. Therefore, while NEPT may seem attractive at first glance, the financials suggest that investors should proceed with caution.
What is the right price you would pay to acquire a share of Neptune Wellness? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
Watch out for price decline
Please consider monitoring Neptune Wellness on a daily basis if you are holding a position in it. Neptune Wellness is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted 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 Neptune Wellness stock to be traded above the $1 level to remain listed. If Neptune Wellness 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.
What is happening with Neptune Wellness Solutions this year
Annual and quarterly reports issued by Neptune Wellness Solutions are formal
financial statements that are published yearly and quarterly and sent to Neptune stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Neptune Wellness often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Is Neptune a risky opportunity?
Let's check the volatility. Neptune is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Neptune (USA Stocks:NEPT) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Neptune Wellness stock makes you a part-owner of that company.
Neptune Wellness Solutions Current Consensus
Here is the newest trade recommendation based on an ongoing consensus estimate among financial analysis covering Neptune Wellness Sol. The Neptune consensus assessment is calculated by taking the average estimates from all of the analysts covering Neptune Wellness
| Strong Buy | 1 | 33.33 |
| Buy | 0 | 0.0 |
| Hold | 2 | 66.67 |
| Sell | 0 | 0.0 |
| Strong Sell | 0 | 0.0 |
Neptune Wellness Solutions (NEPT) is a player in the Drug Manufacturers-Specialty & Generic industry, specifically within the healthcare category. The company has a market capitalization of just
$2.67M, reflecting its relatively small size within the public market. Despite this, Neptune has a substantial total asset value of
$104.95M, with current assets standing at $43.08M. However, Neptune's
financial health reveals some concerning figures. The company has a negative operating margin of -1.02 and a negative profit margin of -1.27, indicating that it's currently operating at a loss. The net income applicable to common shares is also a loss, standing at $75M. This has contributed to a high probability of bankruptcy at 96.00%, which potential investors should take into account. Neptune's stock performance also shows volatility, with a beta of 2.08, indicating the stock is more volatile than the market average. Its 50-day moving average is $0.2586, while the 200-day moving average is significantly higher at $0.6593. The stock's current price-to-book ratio is 0.12X, suggesting that it may be undervalued. In conclusion, while Neptune Wellness Solutions has substantial assets and a potentially undervalued stock, its financial health and high bankruptcy risk make it a risky investment. Investors should proceed with caution and consider these factors when deciding whether to invest in NEPT.
Neptune is expecting lower volatility in August
Neptune Wellness Solutions, a diversified wellness company, has demonstrated promising potential with its recent surge of over 6.25. Despite the overall market volatility, the company anticipates less turbulence in August. This expected stability, coupled with its recent performance, positions it as an appealing investment option. However, as with any investment, it's essential to assess the company's long-term prospects and your risk tolerance before making a decision. Neptune Wellness Solutions has exhibited above-average volatility over the chosen time frame. Investors should independently evaluate Neptune Wellness Solutions to ensure that their intended
market timing strategies align with their expectations about the company's volatility. Neptune Wellness Solutions is a potential penny stock. While Neptune Wellness may indeed be a viable investment instrument, many penny stocks are speculative and subject to artificial price inflation. We urge investors to be vigilant for signals such as email spam, message board hype, claims of breakthroughs, volume surges, sudden news releases, unreported promotions, or demotions released before SEC filings. It's also advisable to review the biographies and employment histories of current and former company executives before investing in high volatility instruments, penny stocks, or equities classified as microcap.
While it's possible to profit from Neptune's instrument if you time your entry and exit perfectly, remember that penny stocks that have been artificially hyped typically can't sustain their elevated share price for more than a few days. The price of a promoted high volatility instrument will almost invariably revert back. The only way to enhance shareholder value is through legitimate performance underpinned by robust fundamentals. In conclusion, the recent price drop in Neptune Wellness Solutions stock presents an ambiguous investment opportunity. With an Analyst Overall Consensus of 'Hold' and a Valuation Market Value of
0.16, the stock's potential seems uncertain. The Analyst Target Price Estimated Value stands at 0.544, which is significantly higher than the current market value, suggesting a possible upside. However, the Analyst Lowest Estimated Target Price is 0.0, indicating a potential downside risk. The Valuation Real Value is 0.26, which is higher than the market value, but still lower than the Analyst Target Price Estimated Value. The Posible Upside Price is
8.2, which is quite promising, but the Posible Downside Price of 0.001619 should not be overlooked. Given these factors, investors should exercise caution and thoroughly evaluate their risk tolerance before investing in Neptune Wellness Solutions stock. .
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Neptune Wellness Solutions. Please refer to our
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