Does Assure Holdings (USA Stocks:IONM) have healthy basic indicators based on the recent roll up?

The healthcare sector is often seen as a safe haven for investors, and Assure Holdings Corp (IONM) is one such company within this sector that is worth a closer look. This healthcare equipment and supplies provider, with a workforce of 95, operates in the niche of medical care facilities. Despite being relatively small with a market valuation of $18.75M, the company shows strong potential with an analyst consensus rating it as a 'Strong Buy' and an estimated target price of $4 per share. However, the financial health of the company seems to be a concern with a negative total stockholder equity of $15.3M and a high probability of bankruptcy at 96%. This paints a picture of a company with potential for growth but also one that carries significant financial risk. Investors would do well to delve deeper into the fundamentals of Assure Holdings Corp before making an investment decision. Despite the presence of highly uncertain fundamental indicators, Assure Holdings Corp may be nearing a crucial turning point that could potentially drive its shares higher in July 2024. The company's risk of distress exceeds 76 percent. The question remains: will investors maintain their optimism, or should we anticipate a sell-off in July?
Published over six months ago
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Reviewed by Gabriel Shpitalnik

Assure Holdings Corp (IONM) presents a challenging investment scenario, as it has a negative total stockholder equity of $15.3M and a negative return on assets of 0.79. This indicates that the company is currently not generating enough profit to cover its costs, which is a significant concern for potential investors. However, the company has a gross profit of $14.87M, which suggests that it is capable of generating substantial revenue. Therefore, while the company's financial health is currently strained, its ability to generate profit indicates potential for future growth. Investors should closely monitor this stock and consider the risk associated with its current financial situation.

Major Takeaways

Assure Holdings Corp has shown significant volatility over the past three months. The company's Sharpe Ratio, a measure of risk-adjusted performance, stands at 0.0944, indicating a 0.0944% return per unit of risk during this period. Our analysis incorporates twenty-nine different technical indicators to assess whether the expected returns of 1.07% are commensurate with the associated risk. Key metrics to consider include Assure Holdings' Risk Adjusted Performance of 0.0718, a downside deviation of 10.8, and a Mean Deviation of 8.0. These figures help evaluate the company-specific risk that cannot be diversified away.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Assure Holdings income statement, its balance sheet, and the statement of cash flows. Potential Assure Holdings investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Assure Holdings investors may use each financial statement separately, they are all related. The changes in Assure Holdings's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Assure Holdings's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Assure Holdings fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Assure Holdings performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Assure Holdings shares is the value that is considered the true value of the share. If the intrinsic value of Assure is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Assure Holdings. Please read more on our fundamental analysis page.

Watch out for price decline

Please consider monitoring Assure Holdings on a daily basis if you are holding a position in it. Assure Holdings is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted 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 Assure Holdings stock to be traded above the $1 level to remain listed. If Assure Holdings 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.

How important is Assure Holdings's Liquidity

Assure Holdings financial leverage refers to using borrowed capital as a funding source to finance Assure Holdings Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Assure Holdings 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 Assure Holdings' 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 Assure Holdings' 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 Assure Holdings's total debt and its cash.

Breaking it down a bit more

The recent price roll up of Assure Holdings Corp may raise some interest from investors. The stock closed today at a share price of 0.45 on very low momentum in trading volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in July. The stock standard deviation of daily returns for 90 days investing horizon is currently 11.28. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Assure Holdings partners.
Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence Assure Holdings' decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over Assure Holdings' decisions due to their larger holdings.

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Assure Holdings has an asset utilization ratio of 3.39 percent. This suggests that the Company is making $0.0339 for each dollar of assets. An increasing asset utilization means that Assure Holdings Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Total Current Assets
11.8 M
Net Tangible Assets
25.2 M
Non Current Assets Total751,4501.95
Non Currrent Assets Other(2.7 Million)-7.01
Other Current Assets3.15 Million8.18
Total Current Assets11.79 Million30.62
Net Tangible Assets25.19 Million65.4
Intangible Assets333,4500.87
"Buy low, sell high" is an age-old adage in the investment world, but discerning which stocks truly embody this principle requires a keen understanding of a company's fundamentals. Assure Holdings Corp (IONM), despite its day typical price of $0.47 and a rather high total operating expense of $15.4M, shows promise in its robust fundamental indicators. Notably, the company has a net working capital deficit of $15.5M and a net income loss of $21.4M, which might raise concerns. However, it's important to consider the company's positive change in working capital of $16.7M, which suggests an improvement in the company's short-term liquidity and operational efficiency. Coupled with the fact that 16.66% of the shares are owned by insiders, which typically indicates confidence in the company's prospects, Assure Holdings Corp presents a potentially promising investment opportunity.

Will Assure Holdings continue to go nuts?

Assure Holdings Corp has displayed impressive market performance, but a recent drop in downside deviation to 10.8 suggests decreasing volatility. This might indicate a reduced risk of potential losses, appealing to risk-averse investors. However, it could also signal a slowing in the stock's rapid growth. Therefore, investors should monitor these risk metrics to assess the stock's future trajectory. Despite being a potential penny stock, Assure Holdings may be a good investment. However, as many penny stocks are speculative and prone to artificial price hype, investors must fully understand the associated risks. Look for red flags such as email spams, message board hypes, sudden news releases, unreported promotions, or demotions before SEC filings.
Also, review the biographies and work history of company officers before investing. Profits can be made from Assure if you time your entry and exit correctly. However, artificially hyped penny stocks often fail to maintain their increased share price for long. Legitimate performance and solid fundamentals are the only ways to increase shareholder value.In conclusion, Assure Holdings Corp (IONM) presents a compelling investment opportunity in 2024. With an analyst overall consensus of a Strong Buy, the company has a potential upside price of $11.71, significantly higher than the current valuation market value of $0.45. The analyst target price estimated value stands at $4, with the highest estimated target price reaching $4.44. However, investors should also consider the possible downside price of $0.0045. The fiscal year-end in December could be a make or break moment for Assure Holdings, potentially leading to a significant revaluation of the company's stock..

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Editorial Staff

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