This firm currently holds 327.26
M in liabilities with Debt to Equity (D/E) ratio of 1.77, which is about average as compared to similar companies.
Lumiradx has
performance score of 1 on a scale of 0 to 100. The company secures a Beta (Market Risk) of -0.76, which conveys possible diversification benefits within a given portfolio. Let's try to break down what Lumiradx's beta means in this case. As returns on the market increase, returns on owning Lumiradx are expected to decrease at a much lower rate. During the bear market, Lumiradx is likely to outperform the market. Although it is extremely important to respect
Lumiradx Limited price patterns, it is better to be realistic regarding the information on equity historical
price patterns. The philosophy towards estimating
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By analyzing
Lumiradx Limited technical indicators, you can presently evaluate if the expected return of 0.0923% will be sustainable into the future.
Lumiradx Limited right now secures a risk of 4.75%. Please verify Lumiradx Limited
coefficient of variation,
maximum drawdown, as well as the
relationship between the Maximum Drawdown and
skewness to decide if Lumiradx Limited will be following its current price movements.
LumiraDx financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of LumiraDx, including all of LumiraDx's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of LumiraDx assets, the company is considered highly leveraged. Understanding the
composition and structure of overall LumiraDx debt and outstanding corporate bonds gives a good idea of
how risky the capital structure of a business is and if it is worth investing in it. Please read more on our
technical analysis page.
Watch out for price decline
Please consider monitoring LumiraDx on a daily basis if you are holding a position in it. LumiraDx 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 LumiraDx stock to be traded above the $1 level to remain listed. If LumiraDx 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 LumiraDx's Liquidity
LumiraDx
financial leverage refers to using borrowed capital as a funding source to finance LumiraDx ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. LumiraDx 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 LumiraDx'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 LumiraDx'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 LumiraDx's total debt and its cash.
Is LumiraDx valued reasonably by the market?
The company reported the previous year's revenue of 415.45
M. Net Loss for the year was (183.4
M) with profit before overhead, payroll, taxes, and interest of 52.95
M.
Asset Breakdown
133.2 M
Assets Non Current
| Total Assets | 492.53 Million |
| Current Assets | 359.36 Million |
| Assets Non Current | 133.16 Million |
| Goodwill | 38.75 Million |
| Tax Assets | 21.56 Million |
Are Lumiradx technical ratios showing a bounce-back?
Current Sortino Ratio is up to 0.02. Price may slide again. Lumiradx Limited exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Lumiradx Limited individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Lumiradx future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lumiradx's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lumiradx's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Lumiradx Implied Volatility
Lumiradx's implied volatility exposes the market's sentiment of Lumiradx Limited stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Lumiradx's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Lumiradx stock will not fluctuate a lot when Lumiradx's options are near their expiration.
Our Final Takeaway
While few other entities under the diagnostics & research industry are still a bit expensive, Lumiradx may offer a potential longer-term growth to investors. The inconsistency in the assessment between current Lumiradx valuation and our trade advice on Lumiradx is due to the recent market swings and your selection of investing horizon. 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 Lumiradx.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
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 Gabriel Shpitalnik do not own shares of LumiraDx. Please refer to our
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