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A comeback story in the works for Aridis Pharmaceuticals

December 31, 2021  By Gabriel Shpitalnik
Macroaxis Story
Aridis Pharmaceuticals Tangible Assets Book Value per Share are relatively stable at the moment as compared to the past year. Aridis Pharmaceuticals reported last year Tangible Assets Book Value per Share of 1.65. As of 12/31/2021, Net Cash Flow from Financing is likely to grow to about 11.8 M, while Earnings before Tax are likely to drop (24.1 M). As many of us are excited about healthcare space, it is fair to sum up Aridis Pharmaceuticals. We will evaluate if Aridis Pharmaceuticals shares are reasonably priced going into January. Here I will also sum up some fundamental indicators that Aridis Pharmaceuticals investors should consider in January.
Published over a year ago
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Reviewed by Ellen Johnson

Aridis Pharmaceuticals is undervalued at 5.45 per share with modest projections ahead.
The firm shows a Beta (market volatility) of -0.121, which signifies not very significant fluctuations relative to the market. Let's try to break down what Aridis's beta means in this case. As returns on the market increase, returns on owning Aridis Pharmaceuticals are expected to decrease at a much lower rate. During the bear market, Aridis Pharmaceuticals is likely to outperform the market. Even though it is essential to pay attention to Aridis Pharmaceuticals historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Aridis Pharmaceuticals exposes twenty-seven different technical indicators, which can help you to evaluate its performance. Aridis Pharmaceuticals has an expected return of -0.48%. Please be advised to confirm Aridis Pharmaceuticals potential upside, and the relationship between the total risk alpha and kurtosis to decide if Aridis Pharmaceuticals performance from the past will be repeated at some point in the near future.
The performance of Aridis Pharmaceuticals in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Aridis Pharmaceuticals' stock prices. When investing in Aridis Pharmaceuticals, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Aridis Pink Sheet can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Aridis Pharmaceuticals carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

Watch out for price decline

Please consider monitoring Aridis Pharmaceuticals on a daily basis if you are holding a position in it. Aridis Pharmaceuticals is trading at a penny-stock level, and the possibility of delisting is much higher compared to other pink sheets. However, just because the pink sheet is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Aridis Pharmaceuticals stock to be traded above the $1 level to remain listed. If Aridis Pharmaceuticals pink sheet 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.

How important is Aridis Pharmaceuticals's Liquidity

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

How is Aridis allocating its cash?

To perform a cash flow analysis of Aridis Pharmaceuticals, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Aridis Pharmaceuticals is receiving and how much cash it distributes out in a given period. The Aridis Pharmaceuticals cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Is Aridis Pharmaceuticals valued wisely by the market?

The market capitalization of Aridis Pharmaceuticals is $30.55 Million. Aridis Pharmaceuticals retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Note, that even with negative profits, if the true value of the firm is larger than the current market value, you may still be able to generate positive returns on investment in this company.
 2020 2021 (projected)
Interest Expense329.4 K327.47 K
Gross Profit1,000 K1.22 M
Interest ExpenseGross Profit

Ownership Breakdown

Retail Investors
53.38%		Insiders
33.04%		Institutions
13.58%
Retail Investors53.38
Insiders33.04
Institutions13.58

Are Aridis Pharmaceuticals technical ratios showing a correction?

Mean deviation is down to 4.0. It may connote a possible volatility fall. Aridis Pharmaceuticals exhibits very low volatility with skewness of 0.69 and kurtosis of 1.73. However, we advise investors to further study Aridis Pharmaceuticals technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Aridis Pharmaceuticals' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Aridis Pharmaceuticals' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Aridis Pharmaceuticals Implied Volatility

Aridis Pharmaceuticals' implied volatility exposes the market's sentiment of Aridis Pharmaceuticals stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Aridis Pharmaceuticals' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Aridis Pharmaceuticals stock will not fluctuate a lot when Aridis Pharmaceuticals' options are near their expiration.

Our Takeaway on Aridis Pharmaceuticals Investment

While other entities under the biotechnology industry are still a bit expensive, Aridis Pharmaceuticals may offer a potential longer-term growth to retail investors. While some retail investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 Aridis Pharmaceuticals.

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Editorial Staff

Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. 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 Gabriel Shpitalnik do not own shares of Aridis Pharmaceuticals. Please refer to our Terms of Use for any information regarding our disclosure principles.

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