The asset utilization ratio indicates the revenue generated for every dollar of assets a company possesses. CareMax's ratio stands at 120.5 percent, implying that the company earns $1.21 for each dollar of assets. A rising asset utilization ratio suggests that CareMax is enhancing its efficiency in using each dollar of assets for daily operations.
Main Points
Based on the current analyst consensus, CareMax (CMAX) presents an interesting case for potential growth. Despite reporting a significant loss with a net income from continuing operations of
$207.1M, the company has exhibited promising quarterly revenue growth of 34.3%. However, investors should remain cautious due to the company's high mean deviation of 12.98, indicating significant volatility. This suggests that while CareMax has growth potential, it also carries a higher level of risk.
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 |
As the saying goes, "The trend is your friend." Currently, CareMax (CMAX) is showing signs of a positive trend, underpinned by robust quarterly revenue growth of 34.3%. Despite reporting an operating loss of $103.1M and a net income loss of $683.3M, the company's current ratio of 6.06X indicates a strong ability to meet short-term obligations. The market seems to have faith in CareMax's potential, as indicated by a target price of $32.55, suggesting a significant potential upside of 19.23%. However, investors should tread carefully given the high probability of bankruptcy at 96.00%.
Our perspective of the current CareMax rise
CareMax's current coefficient of variation stands at a significant 945.51, suggesting high volatility and risk. However, a recent uptrend in the stock price indicates growing investor confidence in the company's prospects. Due to the inherent risk, potential investors should exercise caution and consider their risk tolerance before investing. Monitoring the company's performance and market trends is crucial for making informed decisions. CareMax's returns exhibit considerable volatility over the selected time period. Understanding market volatility trends can help investors time their market entry. Utilizing volatility indicators allows traders to gauge CareMax's risk against market volatility during bullish and bearish trends. The increased volatility of bear markets can directly affect CareMax's stock price, causing investor stress as share values decline. This often leads investors to rebalance their portfolios by purchasing different financial instruments as prices drop.
Our Conclusion on CareMax
While some companies within the health information services industry are still a little expensive, even after the recent corrections, CareMax may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither buy new shares of CareMax nor exit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. 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 CareMax.
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Nico Santiago is a PR Contributor to Macroaxis Editorial Board. Nico is a relatively new author here at Macroaxis and he likes to work on advertising and sponsored content and marketing for the company. Nico spends most of his time surfing when the weather is nice and he spends the rest of the year writing for various blogs and companies, as he works on his upcoming books, The Rise of the Financial Machines and Time Series Modelling with AI.
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 Nico Santiago do not own shares of CareMax. Please refer to our
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