Macroaxis Stories

Aldeyra rises slowly despite modest market slide

July 9, 2020  By Rifka Kats
Macroaxis Story
This article will break down few interesting ideas for the current Aldeyra Therapeutics investors and investors who consider a position in the company. We will inspect if investors should continue to be optimistic for the company outlook. The entity current daily volatility is 6.97 percent, with a beta of 0.15 and an alpha of 1.36 over DOW. We estimate Aldeyra Therapeutics as currently undervalued. The real value is approaching 9.18 per share. We have analyzed and interpolated thirty-one available fundamental indicators for Aldeyra Therapeutics, which can be compared to its rivals. To make sure the equity is not overpriced, please confirm all Aldeyra Therapeutics financials, including its number of shares shorted, book value per share, working capital, as well as the relationship between the cash and equivalents and number of employees . Given that Aldeyra Therapeutics has a price to earning of (4.44) X, we suggest you to validate Aldeyra Therapeutics prevailing market performance to make sure the company can sustain itself down the road. Use Aldeyra Therapeutics to enhance returns of your portfolios. The stock experiences a moderate upward volatility. Check odds of Aldeyra Therapeutics to be traded at $4.8 in 30 days.
Published over a year ago
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Reviewed by Ellen Johnson

The firm currently holds 14.84 M in liabilities with Debt to Equity (D/E) ratio of 0.34, which is about average as compared to similar companies. Aldeyra Therapeutics currently holds 14.84 M in liabilities with Debt to Equity (D/E) ratio of 0.34, which is about average as compared to similar companies. This firm has a current ratio of 12.58, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Aldeyra financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Aldeyra, including all of Aldeyra's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Aldeyra assets, the company is considered highly leveraged. Understanding the composition and structure of overall Aldeyra debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Aldeyra Total Debt

Aldeyra liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Aldeyra has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Aldeyra balance sheet include debt obligations and money owed to different Aldeyra vendors, workers, and loan providers. Below is the chart of Aldeyra main long-term debt accounts currently reported on its balance sheet.
You can use Aldeyra financial leverage analysis tool to get a better grip on understanding its financial position

How important is Aldeyra's Liquidity

Aldeyra financial leverage refers to using borrowed capital as a funding source to finance Aldeyra ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Aldeyra 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 Aldeyra's 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 Aldeyra's 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 Aldeyra's total debt and its cash.

Aldeyra Gross Profit

Aldeyra Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Aldeyra 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 Aldeyra Gross Profit growth over the last 10 years. Please check Aldeyra's gross profit and other fundamental indicators for more details.

Is Aldeyra valued reasonably by the market?

Aldeyra Therapeutics preserves 4.01 % of shares owned by insiders. Net Loss for the year was (55.07 M) with profit before overhead, payroll, taxes, and interest of 0.

Liabilities Breakdown

29.6 Million
Total Liabilities
13.93 Million
Current Liabilities
18.03 Million
Liabilities Non Curr
Aldeyra Therapeutics Average Assets is fairly stable at the moment. Also, Aldeyra Therapeutics Average Equity is fairly stable at the moment.

Will price continue to rise in August 2020?

Current variance is at 52.33. Aldeyra Therapeutics is displaying above-average volatility of 7.23 over the selected time horizon. Investors should scrutinize Aldeyra Therapeutics independently to ensure intended market timing strategies are aligned with expectations about Aldeyra Therapeutics volatility.

Our Takeaway on Aldeyra Therapeutics Investment

Despite other companies under biotechnology industry are still a bit expensive, Aldeyra Therapeutics may offer a potential longer-term growth to investors. In closing, as of 9th of July 2020, our research shows that Aldeyra Therapeutics is a rather moderately volatile investment opportunity with high chance of distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. However, our current 30 days buy-hold-sell advice on the company is Sell. The inconsistency in the assessment between current Aldeyra valuation and our trade advice on Aldeyra Therapeutics is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Aldeyra Therapeutics.

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Editorial Staff

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 Aldeyra. Please refer to our Terms of Use for any information regarding our disclosure principles.

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