CryoCell International (NYSE MKT: CCEL), a key player in the Healthcare sector, specifically Health Care Providers & Services, has been under the financial microscope recently due to its high debt levels. As of the latest reports, the company's total liabilities stand at $72.3M, with short and long-term debt totaling $10.9M. This is juxtaposed against a cash and short-term investments balance of just $980.2K, indicating a significant financial leverage. The company's net working capital is in a deficit of $11.4M, further emphasizing the financial strain. Despite an operating income loss of $12.3M and a net income loss of $9.5M, CryoCell has managed to generate a free cash flow of $1.3M. The company's market value is currently $7.58, with a real value of $8.28, suggesting some undervaluation. Analysts have a consensus of 'Buy' with a target price estimated value of $10, and the highest estimated target price reaching $11.1. Despite the financial challenges, the daily balance of power stands at 0.9, indicating a bullish sentiment among traders. Investors should tread carefully, considering both the potential upside and the company's debt situation. CryoCell International is set to release its earnings report today. The company's Price to Free Cash Flow (Pfcf) Ratio remains steady compared to last year. Return on Equity (Roe) is projected to increase to 1.04 this year, despite an anticipated drop in Enterprise Value to roughly $60.2 million. Given the interest in the healthcare providers and services sector, CryoCell International stands out as a distinctive investment option.
CryoCell International financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of CryoCell International, including all of CryoCell International'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 CryoCell International assets, the company is considered highly leveraged. Understanding the
composition and structure of overall CryoCell International 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.
How important is CryoCell International's Liquidity
CryoCell International
financial leverage refers to using borrowed capital as a funding source to finance CryoCell International ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. CryoCell International 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 CryoCell International'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 CryoCell International'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 CryoCell International's total debt and its cash.
What is driving CryoCell International Investor Appetite?
The company reported the previous year's revenue of 31.34
M. Net Loss for the year was (9.52
M) with profit before overhead, payroll, taxes, and interest of 21.54
M.
Asset Breakdown
62.5 M
Non Current Assets Total
Non Currrent Assets Other
| Total Assets | 73.92 Million |
| Non Current Assets Total | 62.51 Million |
| Non Currrent Assets Other | 7.25 Million |
| Total Current Assets | 10.52 Million |
| Intangible Assets | 1.99 Million |
| Other Current Assets | 770,881 |
| Other Assets | 28.58 Million |
| Net Tangible Assets | (17.6 Million) |
| Deferred Long Term Asset Charges | 0.0 |
"Cash is king" is a phrase often used in the financial world, and CryoCell International's (CCEL) cash flow situation is a testament to this.
The company's end period cash flow stands at a healthy $406.1K, with total cash from operating activities amounting to $8.9M. However, CryoCell's current ratio of 0.47X indicates a potential liquidity risk, as it suggests the company may struggle to meet short-term obligations. On the debt front, CryoCell has a total debt of $10.9M, which is manageable given its market capitalization of $61.43M. Despite a net income loss of $9.5M, the company's low beta of 0.56 suggests less volatility compared to the market, which could make it a safer investment in turbulent times..
CryoCell International implied volatility may change after the rise
CryoCell International's recent market risk-adjusted performance has surged over 0.2, indicating a robust potential for improved investment returns. This positive performance suggests a favorable shift in the company's risk-return tradeoff, potentially impacting the stock's implied volatility. Therefore, investors should closely monitor CryoCell International's market movements. The company exhibits above-average semi-deviation for the current time horizon. Understanding market volatility trends can help investors time the market effectively. Volatility indicators allow traders to measure CryoCell International's stock risk against market volatility during both bullish and bearish trends. The heightened volatility of bear markets can directly affect CryoCell International's stock price, causing investor stress as share values drop. This often prompts investors to rebalance their portfolios by purchasing different financial instruments as prices fall.
Our Final Take On CryoCell International
Whereas some firms within the medical care facilities industry are still a little expensive, even after the recent corrections, CryoCell International may offer a potential longer-term growth to institutional investors. The inconsistency in the assessment between current CryoCell valuation and our trade advice on CryoCell International 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 CryoCell International.
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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 CryoCell International. Please refer to our
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