In the world of investing, what goes up must come down, and IMAC Holdings (NASDAQ: BACK) is currently experiencing a downward trend that raises eyebrows. Despite operating in the growing medical care facilities sector, the company is grappling with conflicting fundamentals that could be unsettling investors. With a staggering loss of 6.5M before tax and total stockholder equity sitting at a troubling -752.6K, concerns about its financial health are mounting. As analysts project a target price of 34.5, the question remains: can IMAC Holdings turn its fortunes around, or are these red flags signaling deeper issues? IMAC Holdings is currently showing stable return on equity compared to the previous year. The net debt to EBITDA ratio is expected to increase to 0.09 this year, while the price-to-sales ratio may drop to 0.45. The company is set to announce its earnings today. Although there are concerns in the healthcare equipment and supplies sector, it's worth taking a closer look at IMAC Holdings based on its current fundamentals. The stock has faced challenges from institutional investors due to market uncertainties, yet it tends to move independently of broader market trends. This presents an opportunity to consider IMAC as a potential addition to your investment portfolio.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include IMAC Holdings income statement, its balance sheet, and the statement of cash flows. Potential IMAC Holdings investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although IMAC Holdings investors may use each financial statement separately, they are all related. The changes in IMAC Holdings's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on IMAC Holdings's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of IMAC Holdings
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of IMAC Holdings performance into the future periods or doing a reasonable stock valuation. The intrinsic value of IMAC Holdings shares is the value that is considered the true value of the share. If
the intrinsic value of IMAC is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares IMAC Holdings. Please read more on our
fundamental 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 effective is IMAC Holdings in utilizing its assets?
IMAC Holdings reports assets on its Balance Sheet. It represents the amount of IMAC resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, IMAC Holdings aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Health Care Equipment & Supplies space. To get a better handle on how balance sheet or income statements item affect IMAC volatility, please check the breakdown of all its
fundamentals.
Are IMAC Holdings Earnings Expected to grow?
The
future earnings power of IMAC Holdings involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of IMAC Holdings factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. IMAC Holdings
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of IMAC
expected earnings.
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.
Is IMAC Holdings valued adequately by the market?
The big decline in price over the last few months for IMAC Holdings could raise concerns from institutional investors as the firm is trading at a share price of
1.22 on
63,570 in volume. The company management teams failed to add value to investors and position the firm supply of money to exploit market volatility in
August. However, diversifying your holdings with IMAC Holdings or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 6.35. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the IMAC Holdings partners.
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence IMAC Holdings' decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over IMAC Holdings' decisions due to their larger holdings.
| 2021 | 2022 | 2023 | 2024 (projected) |
Short Long Term Debt Total | 5.9M | 4.2M | 4.8M | 5.4M | Total Assets | 27.2M | 11.1M | 1.1M | 1.1M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. IMAC Holdings has an asset utilization ratio of 454.24 percent. This suggests that the Company is making $4.54 for each dollar of assets. An increasing asset utilization means that IMAC Holdings is more efficient with each dollar of assets it utilizes for everyday operations.
| Other Current Assets | 318,457 | 2.56 |
| Total Current Assets | 1.09 Million | 8.73 |
| Non Current Assets Total | 723,900 | 5.81 |
| Non Currrent Assets Other | 466,033 | 3.74 |
| Other Assets | (651,510) | -5.23 |
| Net Tangible Assets | 9.34 Million | 75.02 |
| Intangible Assets | 1.17 Million | 9.37 |
In the world of investing, the fundamentals often tell a story that can diverge from market sentiment. IMAC Holdings (NASDAQ: BACK) has recently faced a decline, driven by conflicting financial indicators. While the company boasts a current ratio of 1.18, suggesting it can cover its short-term liabilities, it also reported significant losses, including a net income loss of 6.5 million and an operating income loss of 2.9 million. With total operating expenses reaching 2.5 million against revenue of 5.2 million, the financial strain is evident. Investors may find the low price-to-sales ratio of 0.59 appealing, but the overall financial health, reflected in a market capitalization of just 1.84 million, raises concerns about the sustainability of its operations.
IMAC Holdings implied volatility may change after the rise
IMAC Holdings has reported a total risk alpha of -1.86, suggesting the stock may be underperforming compared to its expected returns. This negative figure raises concerns about its future performance, especially given recent price fluctuations. However, as market interest rises, there may be opportunities for investors to take advantage of shifts in sentiment.
The stock is currently experiencing above-average volatility, which can help investors time their moves. By understanding market trends, traders can assess IMAC Holdings' risk against overall market volatility. Increased volatility during bear markets can significantly affect the stock price, often leading investors to adjust their portfolios as values decline. Keeping an eye on these trends could be key for those looking to navigate IMAC Holdings' next steps.
Our Conclusion on IMAC Holdings
Whereas some companies within the medical care facilities industry are still a little expensive, even after the recent corrections, IMAC Holdings may offer a potential longer-term growth to institutional investors. The inconsistency in the assessment between current IMAC valuation and our trade advice on IMAC Holdings is due to the recent market swings and your selection of investing horizon. 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 IMAC Holdings.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of IMAC Holdings. Please refer to our
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