CareMax (CMAX), a key player in the Health Care Equipment & Supplies sector, has been making headlines with a mix of positive and negative news. Despite the company's negative income before tax of $684.2M and an operating loss of $103.1M, there are silver linings to be found.
The company's enterprise value to revenue ratio stands at 0.5789, indicating that the market values every dollar of the company's revenue reasonably. This could be a positive sign for potential investors. Moreover, the analyst target price estimated value for CareMax is $5.2, which is significantly higher than its 50-day moving average of $2.67 and its 52-week low of $1.55.
However, investors should also consider the company's high risk, as indicated by a coefficient of variation of 899.57 and a standard deviation of 31.03. The company's return on equity is also in the negative territory at -2.3, which might be a concern for equity investors.
In conclusion, while CareMax has its challenges, it also presents potential upside. Investors should carefully weigh these factors before making a decision. The trading activity for CareMax stock is above average, largely due to increasing interest from millennials in the healthcare equipment and supplies sector. We will assess the potential benefits of adding CareMax to your portfolio and explain why we remain optimistic about its prospects for recovery.
What is the right price you would pay to acquire a share of CareMax? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
Watch out for price decline
Please consider monitoring CareMax on a daily basis if you are holding a position in it. CareMax 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 CareMax stock to be traded above the $1 level to remain listed. If CareMax 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.
What is happening with CareMax this year
Annual and quarterly reports issued by CareMax are formal
financial statements that are published yearly and quarterly and sent to CareMax stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as CareMax often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
CareMax Gross Profit
CareMax Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing CareMax 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 CareMax Gross Profit growth over the last 10 years. Please check CareMax's
gross profit and other
fundamental indicators for more details.
Is CareMax a risky opportunity?
Let's check the volatility. CareMax is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind CareMax (USA Stocks:CMAX) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a CareMax stock makes you a part-owner of that company.
CareMax Current Consensus
Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering CareMax. The CareMax consensus assessment is calculated by taking the average estimates from all of the analysts covering CareMax.
| Strong Buy | 0 | 0.0 |
| Buy | 0 | 0.0 |
| Hold | 3 | 100.0 |
| Sell | 0 | 0.0 |
| Strong Sell | 0 | 0.0 |
"Every cloud has a silver lining," and this holds true for CareMax (CMAX), despite the mixed news surrounding the company. The Health Information Services firm, with a market capitalization of $19.74M, has shown a promising quarterly revenue growth of 34.3%, indicating potential for future profitability. However, investors should be cautious as the company has a high probability of bankruptcy at 96.00% and a net income loss of $683.3M. On the brighter side, CareMax's stock has a potential upside of 19.23%, and with 57.83% of shares owned by institutions, there is a strong vote of confidence from the market. Despite the challenges, CareMax's silver lining lies in its revenue growth and institutional backing.
Does CareMax have anything more to show in July?
Despite the recent -12.88 value at risk for CareMax, the company still holds potential for July. Investors should not hastily dismiss the stock based on this single metric. It's vital to consider other financial indicators and the company's overall performance in the healthcare sector. While the current risk value may suggest a bearish trend, it could also present a buying opportunity for those who believe in the company's long-term growth. CareMax exhibits above-average volatility, understanding which can help investors time the market. Using volatility indicators properly allows traders to measure CareMax's stock risk against market volatility during both bullish and bearish trends.
The heightened volatility in bear markets can impact CareMax's stock price and stress investors, often prompting them to rebalance their portfolios by buying different financial instruments as prices fall.In conclusion, despite the seemingly positive news surrounding CareMax (CMAX), a deeper analysis reveals a less optimistic picture. The company's EPS estimate for the current year stands at a worrying
-27.8, and the forecast for the next year isn't much better at
-17.52. The valuation real value is 4.37, which is lower than the analyst target price estimated value of 5.2. Furthermore, the analyst overall consensus is a 'Hold', with three analysts maintaining this stance. The possible downside price of 0.0389 also indicates potential risk. Therefore, while the possible upside price of 36.74 may seem attractive, investors should exercise caution and thoroughly evaluate the company's financial health before making any investment decisions..
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial 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 CareMax. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
[email protected]