| 2021 | 2022 | 2023 | 2024 (projected) | Payables Turnover | 0.65 | 0.89 | 0.69 | 1.01 | Days Of Inventory On Hand | 42.96 | 47.46 | 54.57 | 56.32 |
Should you add IMAC (USA Stocks:BACK) to your portfolio?
 | By Aina Ster | Macroaxis Story |
As the old adage goes, the only certainty in the stock market is uncertainty. However, IMAC Holdings (NASDAQ: IMAC), a renowned player in the Health Care Equipment & Supplies sector, seems to be defying this notion with its decreasing volatility.
The company, which ended its fiscal year in December, has been exhibiting a stable rate of daily change at 0.99, signaling a potential for less turbulent trading sessions ahead. This stability is further emphasized by the company's Valuation Market Value standing at a modest $2.85, closely matching its Day Typical Price and Day Median Price, both at $2.85.
What's more, IMAC's Valuation Real Value is reported at $10.82, which implies a possible upside price of $18.81, a substantial increase from the current trading price. Analysts are also optimistic about the company's future, with the lowest estimated target price set at $31.4 and the highest at $38.3. This consensus of a strong buy among analysts further solidifies the case for IMAC as a potentially stable investment opportunity.
However, potential investors should note that the company's Price Action Indicator stands at -0.01, and the Period Momentum Indicator at -0.02, hinting at some potential short-term losses. Despite these indicators, the company's strong valuation and positive analyst sentiment suggest that IMAC Holdings may be a viable investment for those seeking stability amidst market volatility. IMAC Holdings is presently generating an expected daily return of 2.047%, with a risk assumption of 15.9669% (based on return distribution volatility) over a 60-day horizon. While many traditional traders are steering clear of the healthcare equipment and supplies sector, it's worthwhile to delve deeper into IMAC Holdings to comprehend its current volatility patterns. So, what can IMAC Holdings shareholders expect in July?
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Reviewed by Rifka Kats
IMAC Holdings currently holds $4.16 million in liabilities with a Debt to Equity (D/E) ratio of 0.35, which is roughly average compared to similar companies. The company's current ratio stands at 1.16, indicating potential difficulty in meeting its financial obligations when due. While debt can benefit IMAC Holdings until it faces repayment challenges, shareholders could end up with nothing if the company fails to meet its debt obligations. More frequently, companies like IMAC Holdings may issue more shares at discount prices, diluting existing shareholders' holdings. In such cases, debt can serve as an effective tool for IMAC to invest in high return growth opportunities. Considering IMAC Holdings' debt usage, it's essential to evaluate it alongside cash and equity. The company has a performance score of 10 out of 100 and a Beta (Systematic Risk) of -2.26, indicating significant market risk. As market returns increase, returns on IMAC Holdings are expected to decrease more significantly. However, during market turbulence, IMAC Holdings is expected to perform better. Analyze future returns on IMAC Holdings using its Sortino ratio, semi variance, and the relationship between the information ratio and value at risk.
Main Ideas
IMAC Holdings (NASDAQ: IMAC) has been demonstrating a downward trend in volatility, which could signal a more stable investment opportunity. The company's coefficient of variation stands at 719.17, indicating a relatively high level of risk, but the standard deviation, a measure of price volatility, is at 15.45, showing a decrease in price fluctuations. Furthermore, the company's total risk alpha, a measure of the risk-adjusted performance of an investment relative to a risk-free rate, is 2.6, suggesting the potential for stable returns. However, investors should also consider the company's market risk adjusted performance of -0.93, indicating that the stock's returns have not adequately compensated for its level of risk.Volatility is a rate at which the price of IMAC Holdings 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 IMAC Holdings may increase or decrease. In other words, similar to IMAC's beta indicator, it measures the risk of IMAC Holdings and helps estimate the fluctuations that may happen in a short period of time. So if prices of IMAC Holdings 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 IMAC Holdings on a daily basis if you are holding a position in it. IMAC Holdings is trading at a penny-stock level, and the possibility of delisting is much higher compared to other 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 IMAC Holdings stock to be traded above the $1 level to remain listed. If IMAC Holdings 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 IMAC Holdings's Liquidity
IMAC Holdings financial leverage refers to using borrowed capital as a funding source to finance IMAC Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. IMAC Holdings 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 IMAC Holdings' 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 IMAC Holdings' 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 IMAC Holdings's total debt and its cash.
IMAC Holdings Gross Profit
IMAC Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing IMAC Holdings 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 IMAC Holdings Gross Profit growth over the last 10 years. Please check IMAC Holdings' gross profit and other fundamental indicators for more details.
IMAC Holdings Volatility Drivers
IMAC Holdings unsystematic risk is unique to IMAC Holdings and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in IMAC Holdings you can also buy Novo Integrated Sciences. You can also mitigate this risk by investing in the health care sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing IMAC Holdings important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in IMAC Holdings income statement and balance sheet. Here are more details about IMAC volatility.Click cells to compare fundamentals
Is IMAC Holdings valued adequately by the market?
The entity reported the previous year's revenue of 5.2 M. Net Loss for the year was (6.48 M) with profit before overhead, payroll, taxes, and interest of 18.34 K.
"As the saying goes, 'The market hates uncertainty,' and IMAC Holdings (NASDAQ: IMAC) seems to be demonstrating this principle with its decreasing volatility.The company's standard deviation, a measure of stock price volatility, stands at 15.45, suggesting a lessening degree of price fluctuation. This, coupled with a downside deviation of 7.57, indicates a lower risk of significant price drops. However, potential investors should be aware of the company's high probability of bankruptcy at 96.00%, which adds a layer of risk. Despite this, with a target price of $8 and a current valuation of $3.49M, IMAC Holdings may present a stable investment opportunity for those willing to navigate the risks.".
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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 Aina Ster do not own shares of IMAC Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.