By analyzing existing technical indicators between Aphria and Curaleaf, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Curaleaf with a short position in Aphria. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Aphria has an asset utilization ratio of 71.95 percent. This suggests that the company is making $0.72 for each dollar of assets. An increasing asset utilization means that Aphria Inc is more efficient with each dollar of assets it utilizes for everyday operations.
Aphria
financial leverage refers to using borrowed capital as a funding source to finance Aphria Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Aphria 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 Aphria'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 Aphria'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 Aphria's total debt and its cash.
In general, Delisted Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Aphria together with similar or unrelated positions with a negative correlation. For example, you can also add Teleflex Incorporated to your portfolio. If Teleflex Incorporated is not perfectly correlated to Aphria it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Aphria, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Aphria and Teleflex Incorporated in your portfolio? Please note if you are using this as a pair-trade strategy between Aphria and Teleflex Incorporated, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Aphria revenue. Based on the latest financial disclosure, Aphria Inc reported 477.1
M of revenue. This is 93.74% lower than that of the Healthcare sector and significantly higher than that of the
Drug Manufacturers—Specialty & Generic industry. The revenue for all United States stocks is 94.94% higher than that of the entity. As for Curaleaf Holdings we see revenue of 626.64
M, which is much higher than that of the Drug Manufacturers—Specialty & Generic
| Aphria | 477.1 Million |
| Sector | 0.0 |
| Curaleaf | 626.64 Million |
Will Aphria pull back in May 2021?
Aphria current downside variance builds up over 73.6.
As of the 12th of April 2021, Aphria shows the
risk adjusted performance of 0.1537, and Mean Deviation of 6.43. Aphria Inc
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. Put another way, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume momentum, or the prices will eventually revert. We have analyze and collected data for nineteen
technical drivers for Aphria Inc, which can be compared to its rivals. Please confirm
Aphria Inc information ratio,
value at risk, and the
relationship between the
standard deviation and
treynor ratio to decide if Aphria Inc is priced correctly, providing market reflects its regular price of 16.28 per share. Given that Aphria has
jensen alpha of 1.2, we suggest you to validate Aphria Inc's prevailing market performance to make sure the company can sustain itself at a future point.
Our Final Takeaway
Whereas other entities under the drug manufacturers—specialty & generic industry are still a bit expensive, Aphria may offer a potential longer-term growth to investors. All things considered, as of the 12th of April 2021, we believe Aphria is currently
overvalued. It hyperactively responds to market trends and projects
low chance of distress in the next two years. Our actual 30 days Buy-Hold-Sell recommendation on the company is
Hold.
Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of Aphria Inc. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com