Trxade Group, a standout in the Pharmaceutical Retailers industry, has been a beacon of strength amidst a turbulent market. With a substantial 50.64% of shares owned by insiders, the company's alignment with shareholder interests is clear. Despite a challenging operating environment, Trxade Group has maintained a healthy current ratio of 1.32X, demonstrating its ability to meet short-term obligations. The company's enterprise value stands at $4.9M, while its total stockholder equity is $763.1K. However, it's important to note that the company has faced a loss in operating income of $2.8M and a free cash flow loss of $2M. Despite these challenges, Trxade Group's real value valuation stands at $11.14, significantly higher than the analyst's lowest estimated target price of $6.746. With a 50-day moving average of $7.9696 and a Wall Street target price of
$12.75, Trxade Group's stock continues to outperform, solidifying its position as a strong contender in the Food & Staples Retailing category. Despite relatively weak fundamental indicators, Trxade Group has demonstrated strong returns over the past few months and could potentially be nearing a breakout point. Will private investors maintain their positions, or should we anticipate a sell-off?
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 Trxade income statement, its balance sheet, and the statement of cash flows. Potential Trxade investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Trxade investors may use each financial statement separately, they are all related. The changes in Trxade's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Trxade'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 Trxade
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Trxade performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Trxade shares is the value that is considered the true value of the share. If
the intrinsic value of Trxade 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 Trxade. Please read more on our
fundamental analysis page.
And What about dividends?
A dividend is the distribution of a portion of Trxade earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Trxade dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Trxade one year expected dividend income is about USD3.17 per share.
Investing in stocks that pay
dividends, such as stock of Trxade Group, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Trxade must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Trxade. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Trxade's Liquidity
Trxade
financial leverage refers to using borrowed capital as a funding source to finance Trxade Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Trxade 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 Trxade'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 Trxade'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 Trxade's total debt and its cash.
Is Trxade valued wisely by the market?
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Trxade is not uncomon. Many companies such as Trxade have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Trxade is distributed among investors.
Ownership Allocation
Trxade Group maintains significant amount of outstanding shares owned by
insiders. An
insider is usually defined as a CEO, other corporate executive, director, or
institutional investors. class="underlinedLink" href="/invest/ratio/MEDS/Shares-Owned-by-Institutions">institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months.
| Retail Investors42.1% | Insiders50.64% | Institutions7.26% |
| Retail Investors | 42.1 |
| Insiders | 50.64 |
| Institutions | 7.26 |
| 2020 | 2021 | 2022 | 2023 (projected) |
Interest Expense | 29.39 K | 23.59 K | 336.21 K | 362.75 K | Gross Profit | 5.71 M | 4.75 M | 5.45 M | 4.8 M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Trxade has an asset utilization ratio of 308.58 percent. This implies that the company is making $3.09 for each dollar of assets. An increasing asset utilization means that Trxade Group is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets2.5 M | Assets Non Current1.3 M | |
| Current Assets | 2.49 Million | 57.77 |
| Assets Non Current | 1.34 Million | 31.1 |
| Goodwill | 480,617 | 11.14 |
Despite the prevailing market downturn, Trxade Group, a prominent player in the Pharmaceutical Retailers industry, has shown remarkable resilience, outperforming many of its peers. With a book value of $0.96 per share, the stock is trading at a price-to-book ratio of 4.62X, indicating a premium valuation by the market. However, the company's
fundamentals present a mixed picture. Trxade Group reported total revenue of
$11.4 million and a cost of revenue of $6 million. However, it suffered a net loss of $3.9 million due to high operating expenses of $8.2 million. The company's EBITDA also stands at a loss of $3 million. Despite these losses, Trxade Group has managed to maintain a healthy balance sheet with total assets of
$3.7 million, including $1.1 million in property, plant, and equipment. The company's total debt stands at $1.58 million, which is manageable considering its assets. However, the company's negative free cash flow of $2 million and negative net income from continuing operations of $3.9 million are areas of concern. Despite these challenges, the company's stock remains a beacon of strength, underpinned by the 50.64% of shares owned by insiders, indicating their confidence in the company's
future prospects.
Will Trxade growth be trustworthy after the gain?
The current downturn in Trxade Group's information ratio to 0.13 may raise questions about the sustainability of its growth following its recent gain. This ratio, a measure of risk-adjusted performance, suggests that the stock's return potential relative to its risk is diminishing, potentially signaling an increase in volatility. Therefore, despite the company's recent noteworthy gain, investors should proceed with caution due to the lower information ratio. Future growth will largely hinge on the company's ability to sustain its performance while effectively managing risks. Trxade Group has exhibited above-average volatility over the selected time period. Investors should carefully analyze Trxade Group on an individual basis to ensure that their intended
market timing strategies align with their expectations about Trxade's volatility. Understanding the various
market volatility trends can often assist investors in timing the market. Proper use of volatility indicators allows traders to gauge Trxade's stock risk against market volatility during both bullish and bearish trends.
The elevated level of volatility that accompanies bear markets can directly affect
Trxade's stock price, adding stress to investors as they watch the value of their shares decrease. This often compels investors to rebalance their portfolios by purchasing different stocks as prices decline. In conclusion, Trxade Group's stock performance today, despite a modest market drop, is a testament to its robust financial standing and positive market sentiment. With an Analyst Overall Consensus rating of 'Buy', the company presents a promising investment opportunity. The Analyst Target Price Estimated Value stands at
$13.495, with the highest estimate reaching
$18.74, indicating a potential upside. Moreover, the Valuation Real Value of $11.14 further solidifies the company's strong position. However, investors should also consider the possible downside price of $0.11. Given these factors, and with the fiscal year end in December, Trxade Group's stock is poised for growth, making it a worthy consideration for portfolio diversification. .
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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 Trxade Group. Please refer to our
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