By analyzing existing basic indicators between Hexo Corp and FSD Pharma, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in FSD Pharma with a short position in Hexo Corp. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Hexo Corp has an asset utilization ratio of 18.61 percent. This suggests that the company is making $0.19 for each dollar of assets. An increasing asset utilization means that Hexo Corp is more efficient with each dollar of assets it utilizes for everyday operations.
How important is Hexo Corp's Liquidity
Hexo Corp
financial leverage refers to using borrowed capital as a funding source to finance Hexo Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Hexo Corp 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 Hexo Corp'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 Hexo Corp'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 Hexo Corp's total debt and its cash.
Details
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 product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now go over Hexo Corp revenue. Based on the latest financial disclosure, Hexo Corp reported 164.37
M of revenue. This is 97.84% lower than that of the Healthcare sector and significantly higher than that of the
Drug Manufacturers—Specialty & Generic industry. The revenue for all United States stocks is 98.26% higher than that of Hexo Corp. As for FSD Pharma we see revenue of 11.91
M, which is much higher than that of the Drug Manufacturers—Specialty & Generic
| HEXO | 164.37 Million | 93.24 |
| Sector | 0.0 | 0.0 |
| HUGE | 11.91 Million | 6.76 |
Will Hexo Corp continue to go insane?
The kurtosis is down to 2.04 as of today. Hexo Corp exhibits very low volatility with skewness of 0.95 and kurtosis of 2.04. However, we advise investors to further study Hexo Corp technical indicators to make sure all market info is available and is reliable. Hexo Corp is a potential penny stock. Although Hexo Corp may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Hexo Corp. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Hexo Corp instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
Our Conclusion on Hexo Corp
Whereas some other entities in the drug manufacturers—specialty & generic industry are either recovering or due for a correction, Hexo Corp may not be as strong as the others in terms of longer-term growth potentials. All things considered, as of the 12th of June 2022, our analysis shows that Hexo Corp responds to the market. The company is
undervalued and projects
average probability of distress for the next 2 years. However, our present 90 days Buy-Hold-Sell recommendation on the company is
Strong Sell.
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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 Hexo Corp. Please refer to our
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