57% of stocks are less volatile than Genocea, and 78% of all traded equity instruments are projected to make higher returns than the company over the 60 days investment horizon. As many conservative investors are still indifferent towards current market risk, it is prudent, from our point of view, to go over Genocea Biosciences' current volatility. We are going to analyze if the current expected returns justify Genocea Biosciences' volatility.
This firm currently holds 25.54 M in liabilities with Debt to Equity (D/E) ratio of 1.96, which is about average as compared to similar companies. The company has a current ratio of 1.94, which is within standard range for the sector. Genocea Biosciences holds a performance score of 13 on a scale of zero to a hundred. The company retains a Market Volatility (i.e. Beta) of 0.2706, which attests to not very significant fluctuations relative to the market. Let's try to break down what Genocea's beta means in this case. As returns on the market increase, Genocea Biosciences returns are expected to increase less than the market. However, during the bear market, the loss on holding Genocea Biosciences will be expected to be smaller as well. Although it is vital to follow Genocea Biosciences current price history, it is good to be conservative about what you can do with the information regarding equity current price movements. Our philosophy towards determining future performance of any stock is to look not only at its past charts but also at the business as a whole, including all fundamental and technical indicators. To evaluate if Genocea Biosciences expected return of 1.26 will be sustainable into the future, we have found twenty-seven different technical indicators, which can help you to check if the expected returns are sustainable. Use Genocea Biosciences jensen alpha, maximum drawdown, semi variance, as well as the relationship between the sortino ratio and potential upside to analyze future returns on Genocea Biosciences.
Volatility is a rate at which the price of Genocea Biosciences 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 Genocea Biosciences may increase or decrease. In other words, similar to Genocea's beta indicator, it measures the risk of Genocea Biosciences and helps estimate the fluctuations that may happen in a short period of time. So if prices of Genocea Biosciences 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.
Watch out for price decline
Please consider monitoring Genocea Biosciences on a daily basis if you are holding a position in it. Genocea Biosciences is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Genocea Biosciences stock to be traded above the $1 level to remain listed. If Genocea Biosciences stock 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 Genocea Biosciences's Liquidity
Genocea Biosciences financial leverage refers to using borrowed capital as a funding source to finance Genocea Biosciences ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Genocea Biosciences 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 Genocea Biosciences' 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 Genocea Biosciences' 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 Genocea Biosciences's total debt and its cash.
How is Genocea allocating its cash?
To perform a cash flow analysis of Genocea Biosciences, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Genocea Biosciences is receiving and how much cash it distributes out in a given period. The Genocea Biosciences cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Is Genocea Biosciences valued fairly by the market?
Genocea Biosciences reported the previous year's revenue of 596.25 K. Net Loss for the year was (36.24 M) with loss before overhead, payroll, taxes, and interest of (26.95 M).
Another 3 percent build-up for Genocea Biosciences
Current variance is at 43.81. As of the 25th of July, Genocea Biosciences retains the Market Risk Adjusted Performance of 5.42, risk adjusted performance of 0.3829, and Downside Deviation of 4.24. Genocea Biosciences technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to break down nineteen technical drivers for Genocea Biosciences, which can be compared to its competitors. Please check out Genocea Biosciencesmaximum drawdown, semi variance, and the relationship between the jensen alpha and potential upside to decide if Genocea Biosciences is priced fairly, providing market reflects its last-minute price of 4.48 per share. Given that Genocea Biosciences has jensen alpha of 1.42, we strongly advise you to confirm Genocea Biosciences's regular market performance to make sure the company can sustain itself at a future point.
The Current Takeaway on Genocea Biosciences Investment
Whereas few other entities under the biotechnology industry are still a bit expensive, Genocea Biosciences may offer a potential longer-term growth to investors. While some 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 Genocea Biosciences.
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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
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