Kazia Therapeutics (NASDAQ: KZIA) presents a compelling case for growth, especially with its current assets totaling
35.14M and a target price of
1.92, suggesting significant upside potential. However, investors should be cautious given the company's reported operating loss of
24.1M and a high probability of bankruptcy at 90.15%, which could overshadow its promising indicators. The biotechnology sector can be volatile, and while KZIA shows some strong forward indicators, the risks involved warrant careful consideration.
Top Findings
Kazia Therapeutics Ltd is currently trading at $0.85 per share, which many analysts believe is undervalued, especially with modest growth projections on the horizon. However, the stock has shown volatility over the past three months, making it a risky investment for that timeframe. The company's Sharpe Ratio stands at 0.1, indicating a meager return relative to the risk taken. After analyzing 28 technical indicators, we found that the expected return of 3.6% may not fully compensate for the associated risks. Investors should consider Kazia's Risk Adjusted Performance of 0.0859, a mean deviation of 12.96, and a Downside Deviation of 11.57 to better understand the specific risks involved.
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 Kazia Therapeutics income statement, its balance sheet, and the statement of cash flows. Potential Kazia Therapeutics investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Kazia Therapeutics investors may use each financial statement separately, they are all related. The changes in Kazia Therapeutics's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Kazia Therapeutics'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 Kazia Therapeutics
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Kazia Therapeutics performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Kazia Therapeutics shares is the value that is considered the true value of the share. If
the intrinsic value of Kazia 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 Kazia Therapeutics. Please read more on our
fundamental analysis page.
How effective is Kazia Therapeutics in utilizing its assets?
Kazia Therapeutics Ltd reports assets on its Balance Sheet. It represents the amount of Kazia resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Kazia Therapeutics aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Biotechnology space. To get a better handle on how balance sheet or income statements item affect Kazia volatility, please check the breakdown of all its
fundamentals.
Are Kazia Therapeutics Earnings Expected to grow?
The
future earnings power of Kazia Therapeutics involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Kazia Therapeutics factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Kazia Therapeutics
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Kazia
expected earnings.
Kazia Therapeutics Gross Profit
Kazia Therapeutics Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Kazia Therapeutics 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 Kazia Therapeutics Gross Profit growth over the last 10 years. Please check Kazia Therapeutics'
gross profit and other
fundamental indicators for more details.
Breaking down the case for Kazia Therapeutics
The current price rise of Kazia Therapeutics Ltd may raise some interest from investors. The stock closed today at a share price of
0.42 on
1,212,478 in trading volume. The company executives may have good odds in positioning the firm resources to exploit market volatility in
October. The stock standard deviation of daily returns for 90 days investing horizon is currently 35.04. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Kazia Therapeutics 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 Kazia Therapeutics' 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 Kazia Therapeutics' 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. Kazia Therapeutics has an asset utilization ratio of 0.001976 percent. This suggests that the Company is making $2.0E-5 for each dollar of assets. An increasing asset utilization means that Kazia Therapeutics Ltd is more efficient with each dollar of assets it utilizes for everyday operations.
| Non Current Assets Total11.4 M | | Other Current Assets6.7 M | Total Current Assets9.2 M | Intangible Assets20.9 M | | | |
| Non Current Assets Total | 11.37 Million | 39.3 |
| Non Currrent Assets Other | (14.77 Million) | -51.03 |
| Other Current Assets | 6.68 Million | 23.08 |
| Total Current Assets | 9.21 Million | 31.83 |
| Intangible Assets | 20.85 Million | 72.07 |
| Other Assets | 46,892.29 | 0.16 |
| Net Tangible Assets | (4.46 Million) | -15.42 |
| Deferred Long Term Asset Charges | 0.0 | 0.0 |
In the world of investing, the right indicators can signal a promising opportunity. Kazia Therapeutics (NASDAQ: KZIA) is showing signs of potential growth, particularly with a current ratio of 1.62X, indicating solid liquidity to cover short-term liabilities. Despite reporting losses of 20.5 million from continuing operations, the company maintains a cash position of 5.2 million, which could support its ongoing research and development efforts. With a market capitalization of 11.66 million and a price-to-sales ratio of 20,829X, investors may want to keep an eye on this biotechnology firm as it navigates its path forward. The recent surge in stock price could be a precursor to more positive developments ahead.
Can Kazia Therapeutics build up on the current rise?
Kazia Therapeutics Ltd has recently experienced a decrease in its mean deviation to 12.96, indicating that its stock price movements are becoming less erratic. This reduction in volatility could set the stage for the company to build on its recent gains. Investors might wonder if this newfound stability can lead to further price increases, especially as Kazia continues to develop its innovative therapies in the competitive biotech sector.
However, it's important to note that Kazia is considered a potential penny stock, which often comes with high risks and speculative nature. Investors should be cautious and look out for red flags like promotional hype, sudden news, or unusual trading volumes. Thoroughly researching the backgrounds of company executives is also crucial.
While there’s potential for profit with Kazia, timing your trades perfectly is essential, as prices can quickly revert after a spike. Ultimately, sustainable shareholder value comes from solid performance and strong fundamentals.As we look ahead to 2024, Kazia Therapeutics presents a compelling opportunity for investors, particularly given its focus on innovative cancer therapies like Paxalisib. With an analyst consensus rating of "Buy" and a target price estimated as high as
2.21, the potential for significant upside is evident. The naive expected forecast value stands at
0.43, suggesting that even conservative estimates point to growth. However, investors should remain cautious, as the stock's valuation market value is currently at
0.42, indicating that the market has yet to fully recognize its potential. As Kazia navigates the complexities of the biotech landscape, its success could hinge on upcoming developments and clinical results, making it a stock to watch closely in the coming year..
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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 Kazia Therapeutics Ltd. Please refer to our
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