Strike while the iron is hot might be the approach investors are considering when looking at Cosmos Health, a player in the medical distribution industry listed on NASDAQ. With a market capitalization of $14.7M and cash reserves of $3.8M, the company is navigating a challenging landscape marked by a profit margin of -38% and an EPS estimate of -0.47 for the current year. As investors weigh the potential of Cosmos Health against the backdrop of Taiwan's stock offerings, it's crucial to consider these financial metrics and the broader market dynamics that could influence future performance. Cosmos Health's stock recently climbed 3.08%, outpacing Taiwan Semiconductor's 1.32% increase. While some investors are shying away from healthcare providers, it's worth taking a closer look at Cosmos Health to see how it stacks up against Taiwan Semiconductor and similar companies. Let's dive into the competitive strengths of both Cosmos Health and Taiwan Semiconductor to understand their market positions better.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Cosmos or Alimera is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Cosmos Health's Liquidity
Cosmos Health
financial leverage refers to using borrowed capital as a funding source to finance Cosmos Health ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cosmos Health 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 Cosmos Health'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 Cosmos Health'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 Cosmos Health's total debt and its cash.
Correlation Between Cosmos and Alimera Sciences
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Cosmos Health together with similar or unrelated positions with a negative correlation. For example, you can also add Alimera Sciences to your portfolio. If Alimera Sciences is not perfectly correlated to Cosmos Health it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Cosmos Health, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Cosmos Health and Alimera Sciences in your portfolio? Please note if you are using this as a pair-trade strategy between Cosmos Health and Alimera Sciences, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between COSM and ALIM for more information.
Another Deeper Perspective
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Cosmos Health revenue. Based on the latest financial disclosure, Cosmos Health reported 53.38
M of revenue.
This is 99.3% lower than that of the Health Care Providers & Services sector and significantly higher than that of the
Health Care industry. The revenue for all United States stocks is 99.43% higher than that of Cosmos Health. As for Taiwan Semiconductor we see revenue of 2.16
T, which is much higher than that of the Health Care
| COSM | 53.38 Million | 0.002469 |
| Sector | 0.0 | 0.0 |
| TSM | 2.16 Trillion | 100.0 |
A wise investor knows not to put all their eggs in one basket, especially when considering diverse markets like Cosmos Health and Taiwan stocks. Cosmos Health, operating in the medical distribution sector, presents a mixed bag of financial metrics. With a market capitalization of $14.65 million and a book value per share of 2.27, the company appears undervalued. However, its substantial losses, with an EBITDA of 19.9 million and a probability of bankruptcy at 74.22%, raise red flags. While Taiwan stocks might offer more stability, Cosmos Health could appeal to those seeking high-risk, high-reward opportunities, particularly given its potential upside of 7.41..
Another 3 percent decline for Cosmos Health
Cosmos Health's stock took another 3% hit today, underscoring persistent volatility concerns. The coefficient of variation has dropped to -833.33, indicating significant price swings relative to its average return. This suggests a high level of unpredictability, making it difficult to predict future performance reliably. As of November 18, 2024, the stock's risk-adjusted performance stands at (0.08), with a mean deviation of 4.04 and a standard deviation of 5.53. Technical analysis of Cosmos Health can help identify patterns in historical prices and trading volumes to anticipate future price movements.
Investors should review the market risk-adjusted performance, information ratio, and skewness to assess if the stock is fairly priced at $0.63 per share. Given its status as a penny stock, examining the Jensen Alpha is also advisable.When considering an investment in Cosmos Health, it's essential to weigh the potential rewards against the risks. While the Analyst Overall Consensus suggests a "Buy," the stock's Naive Expected Forecast Value of 0.56 and Analyst Lowest Estimated Target Price of 3.64 indicate caution. Investors should carefully assess whether the company's current strategies and market position align with their investment goals. Keep in mind that the financial landscape can change rapidly, and thorough research is key to making informed decisions. Ultimately, if Cosmos Health can leverage its strengths and navigate challenges effectively, there might be opportunities for growth, but it's crucial to remain vigilant and stay updated on any developments..
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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