Will Adamis Pharma (USA Stocks:ADMP) turn things around in September?

Adamis Pharma, a key player in the Drug Manufacturers-Specialty & Generic industry, is worth considering for its product potential. Despite a reported net income loss of 26.2M from continuing operations, the company's enterprise value stands at a robust 917.6K, suggesting underlying value in its product portfolio. The stock has seen a minor price change of 0.03 recently, indicating stability in the market. However, investors should note the company's high total risk alpha of -1.62 and a standard deviation of 23.4, suggesting significant volatility. Lastly, with a Sortino ratio of 0.09, the stock's potential return outweighs the downside risk. Overall, despite some financial hurdles, Adamis Pharma's product potential makes it a noteworthy investment consideration.

Progressive assessment

The company, Adamis Pharma, reported a revenue of $4.76 million for the previous year. The net loss for the same year was $26.48 million, with a loss of $1.43 million before accounting for overheads, payroll, taxes, and interest.
Published over a year ago
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Reviewed by Michael Smolkin

Adamis Pharmaceuticals Corporation (Primary Ticker: ADMP.US), a domestic player in the Health Care sector, specifically in the Drug Manufacturers-Specialty & Generic industry, is a stock that investors should consider for its potential. With a typical day price of $1.61 and a valuation real value of $1.39, it's a company that has been on the radar of many investors. Despite its negative net income of $26.5M and an operating income of $25.1M, it's crucial to note that these figures represent the company's investment in its growth and development. The company's negative return on assets of 0.74 and operating margin of -4.66 further underline the firm's current financial situation. The company's book value stands at -4.07, while its earnings per share is at -11.33. However, it's worth noting that the company's revenue per share is 2.348, indicating potential for growth and profitability in the future. Adamis Pharmaceuticals, with its 11 full-time employees, is part of the NASDAQ exchange under the type of common stock. Its CUSIP is 00547W109 and its Open Figi is BBG000BYB544. For more information about the company, you can visit their website at https://www.adamispharmaceuticals.com. Despite the current financial figures, the company's potential lies in its enterprise value EBITDA of -0.78 and its rate of daily change of 1.02. These figures suggest that the company has the potential for growth and profitability in the future. In conclusion, while Adamis Pharmaceuticals may currently be experiencing a loss, it's a company with potential for future growth and profitability. Investors should consider this stock for its potential returns. The Receivables Turnover of Adamis Pharma is currently relatively stable compared to the previous year. Last year, Adamis Pharma reported a Receivables Turnover of 5.09. As of August 2, 2023, the Accounts Payable Turnover is projected to increase to 0.83, while Earnings Before Tax are expected to decrease to -28.6 million. As the pharmaceutical sector is generating excitement among many investors, it's appropriate to provide a summary of Adamis Pharma. We will discuss why we maintain our optimism in anticipation of a recovery. Additionally, I will highlight some key fundamental factors impacting Adamis Pharma's services and explain how these factors could influence the company's outlook for investors this year.

How important is Adamis Pharma's Liquidity

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

Breaking it down

Adamis Pharma shows 7.81 percent if its outstanding shares held by insiders and 7.81 percent owned by other corporate entities .

Ownership Breakdown

Retail Investors
75.6%
Insiders
7.81%
Institutions
16.59%
Retail Investors75.6
Insiders7.81
Institutions16.59
Adamis Pharmaceuticals, a player in the Drug Manufacturers-Specialty & Generic industry, is a stock that investors should consider. Despite a high probability of bankruptcy at 95.74%, the company's current ratio stands at 1.58X, indicating a relatively healthy short-term liquidity position. The company's net assets are valued at $10.93M, with a total debt of just $342.56K, demonstrating a low debt-to-equity ratio of 0.16%. However, the company's financial performance has been less than stellar, with an EBITDA of -$22.3M, indicating significant losses. The operating margin is also in the negative territory at -4.66.
Despite these challenges, the company has managed to achieve a quarterly revenue growth of 0.259. Adamis Pharma's stock, traded under the ticker ADMP.US on NASDAQ, has a typical day price of $1.61. The company's market capitalization stands at a modest $3.99M, with 2.79M shares outstanding. The stock is largely held by institutions, accounting for 16.59% of the shares. In conclusion, while Adamis Pharma presents some financial challenges, its low debt and potential for revenue growth may offer investment opportunities for risk-tolerant investors. .

Can Adamis Pharma build up on the latest spike?

Despite the recent surge in Adamis Pharma's stock, the current Sortino Ratio of 0.09 suggests potential volatility in the future. This ratio, a measure of risk-adjusted return on an investment, indicates that the stock's price may experience a downturn. Investors are advised to exercise caution and closely monitor the stock's performance before making any trading decisions. While the recent surge provides some optimism, it is uncertain whether Adamis Pharma can maintain this momentum over the long term. Adamis Pharma has demonstrated significant volatility in returns over the selected time period. We urge all investors to further investigate this asset to ensure that their market timing strategies align with the implied risk associated with Adamis Pharma. Understanding different market volatility trends can often assist investors in timing the market. Proper use of volatility indicators allows traders to gauge Adamis Pharma's stock risk against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly affect Adamis Pharma's stock price, adding stress for investors as they watch the value of their shares decline. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop.

Our Final Takeaway

While some other firms in the drug manufacturers—specialty & generic industry are either recovering or due for a correction, Adamis Pharma may not be performing as strong as the other in terms of long-term growth potentials. While some retail investors may not share our view we believe it may be a good time to short Adamis as the risk-reward trade off is not appealing enough to hold a position. 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 Adamis Pharma.

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Editorial Staff

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

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