| 2020 | 2021 | 2022 | 2023 (projected) | Accounts Payable Turnover | 1.69 | 1.05 | 0.95 | 1.28 | PPandE Turnover | 10.9 | 11.11 | 12.77 | 13.11 |
Should you add Oramed (USA Stocks:ORMP) to your portfolio?
 | By Aina Ster | Macroaxis Story |
48% of stocks are less volatile than Oramed, and 83% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon. While some risk-loving traders are indifferent towards current market volatility, it is reasonable to recap the risk of investing in Oramed Pharmaceuticals. We will evaluate if the latest Oramed Pharmaceuticals price volatility suggests a bounce in February.
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Reviewed by Rifka Kats
This firm currently holds 977 K in liabilities with Debt to Equity (D/E) ratio of 0.01, which may suggest Oramed Pharmaceuticals is not taking enough advantage from borrowing. The company has a current ratio of 20.59, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Oramed Pharmaceuticals until it has trouble settling it off, either with new capital or with free cash flow. So, Oramed Pharmaceuticals' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Oramed Pharmaceuticals sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Oramed to invest in growth at high rates of return. When we think about Oramed Pharmaceuticals' use of debt, we should always consider it together with cash and equity.
On a scale of 0 to 100, Oramed Pharmaceuticals holds a performance score of 12. The company holds a Beta of 1.0971, which implies a somewhat significant risk relative to the market. Let's try to break down what Oramed's beta means in this case. Oramed Pharmaceuticals returns are very sensitive to returns on the market. As the market goes up or down, Oramed Pharmaceuticals is expected to follow. Although it is vital to follow Oramed Pharmaceuticals current trending patterns, it is good to be conservative about what you can do with the information regarding equity existing price patterns. The philosophy towards forecasting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. We have found twenty-seven technical indicators for Oramed Pharmaceuticals, which you can use to evaluate the performance of the company. Please employ Oramed Pharmaceuticals maximum drawdown, and the relationship between the information ratio and expected short fall to make a quick decision on whether Oramed Pharmaceuticals historical price patterns will revert.
Volatility is a rate at which the price of Oramed Pharmaceuticals or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Oramed Pharmaceuticals may increase or decrease. In other words, similar to Oramed's beta indicator, it measures the risk of Oramed Pharmaceuticals and helps estimate the fluctuations that may happen in a short period of time. So if prices of Oramed Pharmaceuticals fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page. How important is Oramed Pharmaceuticals's Liquidity
Oramed Pharmaceuticals financial leverage refers to using borrowed capital as a funding source to finance Oramed Pharmaceuticals ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Oramed Pharmaceuticals 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 Oramed Pharmaceuticals' 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 Oramed Pharmaceuticals' 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 Oramed Pharmaceuticals's total debt and its cash.
Oramed Pharmaceuticals Gross Profit
Oramed Pharmaceuticals Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Oramed Pharmaceuticals 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 Oramed Pharmaceuticals Gross Profit growth over the last 10 years. Please check Oramed Pharmaceuticals' gross profit and other fundamental indicators for more details.
Oramed Pharmaceuticals Volatility Drivers
Oramed Pharmaceuticals unsystematic risk is unique to Oramed Pharmaceuticals and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Oramed Pharmaceuticals you can also buy Enanta Pharmaceuticals. You can also mitigate this risk by investing in the health care sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Oramed Pharmaceuticals important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Oramed Pharmaceuticals income statement and balance sheet. Here are more details about Oramed volatility.Click cells to compare fundamentals
Breaking it down
Oramed Pharmaceuticals reported the previous year's revenue of 2.7 M. Net Loss for the year was (22.24 M) with profit before overhead, payroll, taxes, and interest of 2.71 M.
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