Macroaxis Stories

Should I hold on to my Immucell (NASDAQ:ICCC) position?

November 15, 2021  By Vlad Skutelnik
Macroaxis Story
Immucell Cp is scheduled to announce its earnings today. The next earnings report is expected on the 28th of February 2022. Immucell Asset Turnover is projected to slightly decrease based on the last few years of reporting. The past year's Asset Turnover was at 0.38. The current year Book Value per Share is expected to grow to 4.19, whereas Average Assets are forecasted to decline to about 33.4 M. As many millenniums are trying to avoid healthcare space, it makes sense to go over Immucell Cp a little further and try to understand its current market patterns. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over a year ago
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Reviewed by Raphi Shpitalnik

Immucell Cp currently holds 10.31 M in liabilities with Debt to Equity (D/E) ratio of 0.32, which is about average as compared to similar companies. The entity has a current ratio of 7.49, suggesting that it is liquid enough and is able to pay its financial obligations when due. About 28.0% of the company shares are held by company insiders. The book value of Immucell was currently reported as 3.92. Immucell Cp has Price/Earnings (P/E) ratio of 609.17. The entity recorded a loss per share of 0.14. The firm had not issued any dividends in recent years. Immucell had 0:1 split on the 25th of July 1990.
ImmuCell financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of ImmuCell, including all of ImmuCell'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 ImmuCell assets, the company is considered highly leveraged. Understanding the composition and structure of overall ImmuCell 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 ImmuCell Total Debt

ImmuCell liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. ImmuCell 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 ImmuCell balance sheet include debt obligations and money owed to different ImmuCell vendors, workers, and loan providers. Below is the chart of ImmuCell main long-term debt accounts currently reported on its balance sheet.
You can use ImmuCell financial leverage analysis tool to get a better grip on understanding its financial position

How important is ImmuCell's Liquidity

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

ImmuCell Gross Profit

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

Is ImmuCell valued correctly by the market?

The firm reported the previous year's revenue of 16.11 M. Net Loss for the year was (434.25 K) with profit before overhead, payroll, taxes, and interest of 6.86 M.

Liabilities Breakdown

9.6 M
Total Liabilities
2 M
Current Liabilities
Total Liabilities9.57 Million
Current Liabilities1.99 Million
Long-Term Liabilities10.65 Million
Tax Liabilities4,333.21

Will Immucell pull back in December 2021?

Immucell information ratio is up to 0.0.
As of the 15th of November 2021, Immucell retains the Market Risk Adjusted Performance of (0.024809), risk adjusted performance of 0.0151, and Downside Deviation of 3.07. Immucell 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 Immucell Cp, which can be compared to its competitors. Please check out Immucell Cp maximum drawdown, semi variance, and the relationship between the jensen alpha and potential upside to decide if Immucell is priced fairly, providing market reflects its last-minute price of 9.22 per share. Given that Immucell Cp has jensen alpha of 0.0366, we strongly advise you to confirm Immucell Cp's regular market performance to make sure the company can sustain itself at a future point.

Whereas some firms under the biotechnology industry are still a bit expensive, Immucell may offer a potential longer-term growth to investors. To conclude, as of the 15th of November 2021, we see that Immucell moves slightly opposite to the market. The company is undervalued with low probability of distress within the next 24 months. However, our primary 90 days 'Buy-Sell' recommendation on the company is Strong Sell.

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Editorial Staff

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of ImmuCell. Please refer to our Terms of Use for any information regarding our disclosure principles.

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