Molecular Partners AG currently has 3.65 million in liabilities, with a Debt to Equity (D/E) ratio of 0.02. This low ratio could indicate that the company isn't fully leveraging its borrowing potential. The asset utilization ratio, which measures the revenue earned per dollar of assets, stands at 3.55 percent for Molecular Partners. This means the company generates $0.0355 for each dollar of assets. An increasing asset utilization ratio suggests that Molecular Partners AG is becoming more efficient in using its assets for daily operations.
Main Takeaways
Molecular Partners AG, a prominent player in the Biotechnology industry, has recently seen a significant dip in its stock price by over 12%. This presents a potential buying opportunity for investors looking to leverage the company's robust financial position. Despite reporting a loss before tax of
62M, the company maintains a strong net invested capital of
176.4M. Furthermore, the firm's risk-adjusted performance stands at 0.15, indicating a relatively stable investment when considering potential risks.
Molecular Partners financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Molecular Partners, including all of Molecular Partners'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 Molecular Partners assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Molecular Partners 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.
Understanding Molecular Total Debt
Molecular Partners liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Molecular Partners has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Molecular Partners balance sheet include debt obligations and money owed to different Molecular Partners vendors, workers, and loan providers. Below is the chart of Molecular main long-term debt accounts currently reported on its balance sheet.
You can use Molecular Partners AG
financial leverage analysis tool to get a better grip on understanding its financial position
How important is Molecular Partners's Liquidity
Molecular Partners
financial leverage refers to using borrowed capital as a funding source to finance Molecular Partners AG ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Molecular Partners 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 Molecular Partners' 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 Molecular Partners' 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 Molecular Partners's total debt and its cash.
An Additional Perspective On Molecular Partners
The company reported the previous year's revenue of 7.04
M. Net Loss for the year was (61.98
M) with profit before overhead, payroll, taxes, and interest of 138.85
M.
Asset Breakdown
188.3 M
Total Current Assets
| Total Assets | 193.3 Million |
| Non Current Assets Total | 4.98 Million |
| Non Currrent Assets Other | 222,600 |
| Other Current Assets | 3.63 Million |
| Total Current Assets | 188.31 Million |
| Intangible Assets | 245,535 |
| Net Tangible Assets | 283.64 Million |
| Other Assets | 4.05 Million |
Every cloud has a silver lining, and the recent 12% dip in Molecular Partners AG stock may just be that silver lining for savvy investors.
Despite the drop, the company's strong current ratio of 14.37X and substantial end period cash flow of $186.9M indicate a robust financial position. The firm's low beta of 0.78 suggests less volatility compared to the market, making it a potentially safer bet in turbulent times. Furthermore, the company's risk-adjusted performance of 0.1548 and Treynor Ratio of 7.79 signal a decent risk-return trade-off. In conclusion, Molecular Partners AG's recent dip could be a buying opportunity for investors looking to capitalize on the company's solid financials and lower risk profile..
Molecular Partners recent price decline can leaving investors with little time to react
Molecular Partners AG's recent decrease in standard deviation to 7.46 indicates a decline in the stock's volatility. This reduced price fluctuation, paired with the company's latest price drop, may give investors limited time to respond. Consequently, investors are urged to keep a close eye on the stock and be ready for quick investment decisions. This scenario emphasizes the importance of a well-planned exit strategy when investing in volatile stocks. As of June 23, Molecular Partners reported a Risk Adjusted Performance of 0.1548, a mean deviation of 4.83, and a Downside Deviation of 6.3.
In relation to fundamental indicators, the technical analysis model allows you to examine current technical drivers of Molecular Partners and their interrelation.Despite the recent decline of over 12 percent in Molecular Partners AG stock, the analyst overall consensus remains a 'Buy'. The stock's valuation real value stands at
$8.67, which is slightly below the current market value of
$9.6. However, the potential upside price of $19.63 suggests a significant growth potential. With the fiscal year ending in December, investors should consider the analyst target price estimated value of $10.28 and the naive expected forecast value of $12. The number of analyst holds is relatively low at 2, indicating a positive sentiment towards the stock. Therefore, despite the recent dip, Molecular Partners AG presents a potentially profitable investment opportunity..
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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 Molecular Partners AG. Please refer to our
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