Orthofix Medical currently holds roughly 59.54
M in cash with 18.48
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.98.
Orthofix Medical has a
performance score of 2 on a scale of 0 to 100. The company holds a Beta of 0.7892, which implies possible diversification benefits within a given portfolio. Let's try to break down what Orthofix's beta means in this case. As returns on the market increase, Orthofix Medical returns are expected to increase less than the market. However, during the bear market, the loss on holding Orthofix Medical will be expected to be smaller as well. Although it is important to respect
Orthofix Medical current trending patterns, it is better to be realistic regarding the information on the equity's existing
price patterns. The philosophy towards forecasting
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
Orthofix Medical technical indicators, you can presently evaluate if the expected return of 0.0989% will be sustainable into the future.
Orthofix Medical right now holds a risk of 2.59%. Please check Orthofix Medical
information ratio and
downside variance to decide if Orthofix Medical will be following its historical
price patterns.
Investing in Orthofix Medical, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Orthofix Medical along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
How important is Orthofix Medical's Liquidity
Orthofix Medical
financial leverage refers to using borrowed capital as a funding source to finance Orthofix Medical ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Orthofix Medical 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 Orthofix Medical'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 Orthofix Medical'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 Orthofix Medical's total debt and its cash.
Orthofix Medical Gross Profit
Orthofix Medical Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Orthofix Medical 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 Orthofix Medical Gross Profit growth over the last 10 years. Please check Orthofix Medical's
gross profit and other
fundamental indicators for more details.
Orthofix Medical Correlation with Peers
Investors in Orthofix can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Orthofix Medical. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Orthofix Medical and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Orthofix is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Orthofix for more details
Breaking down the case for Orthofix Medical
We consider Orthofix Medical very steady.
Orthofix Medical maintains Sharpe Ratio (i.e., Efficiency) of 0.0381, which implies the firm had 0.0381% of return per unit of risk over the last 3 months. Our standpoint towards forecasting the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-one
technical indicators for Orthofix Medical, which you can use to evaluate the future volatility of the company. Please check Orthofix Medical Coefficient Of Variation of 930.04,
risk adjusted performance of 0.1051, and Semi Deviation of 2.45 to confirm if the risk estimate we provide is consistent with the expected return of 0.0989%.
Possible April bounce back of Orthofix?
The market risk adjusted performance is down to 0.39 as of today. Orthofix Medical currently demonstrates below-average downside deviation. It has Information Ratio of 0.11 and Jensen Alpha of 0.32. However, we advise investors to further question Orthofix Medical expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Orthofix Medical's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Orthofix Medical'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.
Our Final Take On Orthofix Medical
While some firms within the medical devices industry are still a little expensive, even after the recent corrections, Orthofix Medical may offer a potential longer-term growth to investors. While some investors may not share our view, we believe it may be a good time to increase your existing holdings in Orthofix. 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 Orthofix Medical.
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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 Orthofix Medical. Please refer to our
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