Is Adagene Stock a Good Investment?

Adagene Investment Advice

ADAG

To provide specific investment advice or recommendations on Adagene stock, we recommend investors consider the following general factors when evaluating Adagene. This will help you to make an informed decision on whether to include Adagene in one of your diversified portfolios:

Examine Adagene's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Adagene's leadership team and their track record. Good management can help Adagene navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Biotechnology space and any emerging trends that could impact Adagene's business and its evolving consumer preferences.
Compare Adagene's performance and market position to its competitors. Analyze how Adagene is positioned in terms of product offerings, innovation, and market share.
Check if Adagene pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Adagene's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Adagene stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Adagene is a good investment.

Sell

Buy

Strong Sell

We provide trade advice to complement the prevailing expert consensus on Adagene. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Adagene is not overpriced, please confirm all Adagene fundamentals, including its operating margin, shares owned by institutions, revenue, as well as the relationship between the shares outstanding and price to book . Please also double-check Adagene number of shares shorted to validate your buy or sell decision is consistent with all fundamental data available and that the company can sustain itself in the current economic cycle.

Market Performance	Very Weak	Details
Volatility	Risky	Details
Hype Condition	Stale	Details
Current Valuation	Undervalued	Details
Odds Of Distress	About Average	Details
Economic Sensitivity	Slowly supersedes the market	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Frail	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Adagene Stock

Researching Adagene's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 26.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.78. Some equities with similar Price to Book (P/B) outperform the market in the long run. Adagene recorded a loss per share of 0.72. The entity had not issued any dividends in recent years.

To determine if Adagene is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Adagene's research are outlined below:

	Adagene generated a negative expected return over the last 90 days
	Adagene has high historical volatility and very poor performance
	The company reported the previous year's revenue of 18.11 M. Net Loss for the year was (18.95 M) with profit before overhead, payroll, taxes, and interest of 10.18 M.
	Adagene currently holds about 168.04 M in cash with (28.45 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.87, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
	Adagene has a frail financial position based on the latest SEC disclosures
	Latest headline from zacks.com: Is Adagene Stock Outpacing Its Medical Peers This Year

Adagene Quarterly Liabilities And Stockholders Equity

100.78 Million

Adagene uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Adagene. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Adagene's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	26th of March 2024 Upcoming Quarterly Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	26th of March 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Adagene's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Adagene's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2023-11-29	2023-09-30	-0.38	-0.42	-0.04	10
2022-08-30	2022-06-30	-0.65	-0.77	-0.12	18
2022-03-31	2021-12-31	-0.67	-0.47	0.2	29
2021-08-26	2021-06-30	-0.39	-0.6	-0.21	53
2023-08-31	2023-06-30	-0.93	-1.48	-0.55	59
2023-03-28	2022-12-31	-0.4	-1.55	-1.15	287
2021-03-31	2020-12-31	-0.4	-1.55	-1.15	287

Know Adagene's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Adagene is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Adagene backward and forwards among themselves. Adagene's institutional investor refers to the entity that pools money to purchase Adagene's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Royal Bank Of Canada	2024-06-30	8.3 K
Ubs Group Ag	2024-06-30	164
Qube Research & Technologies	2024-06-30	47.0
Millennium Management Llc	2024-06-30	0.0
Springbok Capital Management, Llc	2024-06-30	0.0
Advisor Group Holdings, Inc.	2024-06-30	0.0
Artal Group S A	2024-06-30	0.0
Wuxi Apptec Co Ltd	2024-09-30	4 M
Fidelity International Ltd	2024-06-30	3.8 M
Sc China Holding Ltd	2024-09-30	1.3 M
Fmr Inc	2024-09-30	1.3 M

Note, although Adagene's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Adagene's market capitalization trends

The company currently falls under 'Small-Cap' category with a current market capitalization of 108.46 M.

Market Cap

79.4 Million

Adagene's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.16)	(0.17)
Return On Capital Employed	(0.28)	(0.30)
Return On Assets	(0.16)	(0.17)
Return On Equity	(0.27)	(0.28)

Determining Adagene's profitability involves analyzing its financial statements and using various financial metrics to determine if Adagene is a good buy. For example, gross profit margin measures Adagene's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Adagene's profitability and make more informed investment decisions.

Evaluate Adagene's management efficiency

Adagene has return on total asset (ROA) of (0.1959) % which means that it has lost $0.1959 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.457) %, meaning that it created substantial loss on money invested by shareholders. Adagene's management efficiency ratios could be used to measure how well Adagene manages its routine affairs as well as how well it operates its assets and liabilities. The current Return On Tangible Assets is estimated to decrease to -0.17. The current Return On Capital Employed is estimated to decrease to -0.3. At this time, Adagene's Non Current Assets Total are most likely to increase significantly in the upcoming years. The Adagene's current Non Currrent Assets Other is estimated to increase to about 89.1 K, while Return On Tangible Assets are projected to decrease to (0.17).

	Last Reported	Projected for Next Year
Book Value Per Share	1.63	1.71
Tangible Book Value Per Share	1.63	1.71
Enterprise Value Over EBITDA	0.27	0.28
Price Book Value Ratio	1.18	1.24
Enterprise Value Multiple	0.27	0.28
Price Fair Value	1.18	1.24
Enterprise Value	-4 M	-3.8 M

Evaluating the management effectiveness of Adagene allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Adagene Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.

Beta

0.577

Basic technical analysis of Adagene Stock

As of the 26th of November, Adagene shows the risk adjusted performance of (0.02), and Mean Deviation of 4.38. Adagene technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Adagene information ratio, potential upside, and the relationship between the standard deviation and maximum drawdown to decide if Adagene is priced correctly, providing market reflects its regular price of 2.27 per share. Please also double-check Adagene jensen alpha, which is currently at (0.25) to validate the company can sustain itself at a future point.

Adagene's Outstanding Corporate Bonds

Adagene issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Adagene uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Adagene bonds can be classified according to their maturity, which is the date when Adagene has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Boeing Co 2196 Corp Bond US097023DG73	View
	HSBC Holdings PLC Corp Bond US404280DR76	View
	MGM Resorts International Corp Bond US552953CD18	View

View All Adagene Corporate Bonds

Understand Adagene's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Adagene's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	(0.02)
	Market Risk Adjusted Performance	(0.62)
	Mean Deviation	4.38
	Coefficient Of Variation	(3,021)
	Standard Deviation	6.15
	Variance	37.8
	Information Ratio	(0.05)
	Jensen Alpha	(0.25)
	Total Risk Alpha	(1.17)
	Treynor Ratio	(0.63)
	Maximum Drawdown	37.93
	Value At Risk	(9.52)
	Potential Upside	8.13
	Skewness	(0.61)
	Kurtosis	2.08

	Risk Adjusted Performance	(0.02)
	Market Risk Adjusted Performance	(0.62)
	Mean Deviation	4.38
	Coefficient Of Variation	(3,021)
	Standard Deviation	6.15
	Variance	37.8
	Information Ratio	(0.05)
	Jensen Alpha	(0.25)
	Total Risk Alpha	(1.17)
	Treynor Ratio	(0.63)
	Maximum Drawdown	37.93
	Value At Risk	(9.52)
	Potential Upside	8.13
	Skewness	(0.61)
	Kurtosis	2.08

Consider Adagene's intraday indicators

Adagene intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Adagene stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.13
	Daily Balance Of Power	0.25
	Rate Of Daily Change	1.04
	Day Median Price	2.31
	Day Typical Price	2.3
	Market Facilitation Index	0.32
	Period Momentum Indicator	0.08

Adagene Corporate Filings

6K	7th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.	View Verify
	24th of September 2024 Other Reports	View Verify
F3	1st of March 2024 An amendment to the original Schedule 13D filing	View Verify

Adagene time-series forecasting models is one of many Adagene's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Adagene's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Adagene Stock media impact

Far too much social signal, news, headlines, and media speculation about Adagene that are available to investors today. That information is available publicly through Adagene media outlets and privately through word of mouth or via Adagene internal channels. However, regardless of the origin, that massive amount of Adagene data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Adagene news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Adagene relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Adagene's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Adagene alpha.

Adagene Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Adagene can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Adagene Corporate Management

Alexander Goergen	VP Development	Profile
Guizhong Liu	Head Pharmacology	Profile
Xiaohong She	Senior Operations	Profile
Ling Zhou	Head Resources	Profile
Man MBA	CFO Director	Profile
Qinghai Zhao	Chief Officer	Profile
Fangyong Du	Chief Officer	Profile

Already Invested in Adagene?

The danger of trading Adagene is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Adagene is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Adagene. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Adagene is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether Adagene is a strong investment it is important to analyze Adagene's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Adagene's future performance. For an informed investment choice regarding Adagene Stock, refer to the following important reports: