Olink Holding AB (Ticker: OLK), a key player in the Diagnostics & Research industry, has shown some concerning signs from a fundamental perspective. With a high Price to Sales ratio of
18.50X and a Price to Book ratio of
6.23X, the company appears to be significantly overvalued, indicating that the stock may be priced higher than its intrinsic value. Furthermore, with a change in working capital reported as a loss of
27.7M, it suggests potential liquidity issues, which could affect the company's ability to cover short-term obligations. Investors should exercise caution and monitor these mixed performance indicators closely in April.
Main Takeaways
Our recommendation module supplements current analyst and expert consensus on Olink Holding, analyzing the company's growth potential using all available fundamental, technical, and market data. Olink Holding is not expected to issue dividends this year, as it aims to preserve or reinvest any distributable funds. However, investing in non-dividend stocks can still offer capital appreciation potential. Investors in such stocks depend on the stock's price increase over time for returns. If the company performs well and its stock price rises, investors can sell their shares at a profit.
How important is Olink Holding's Liquidity
Olink Holding
financial leverage refers to using borrowed capital as a funding source to finance Olink Holding AB ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Olink Holding 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 Olink Holding'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 Olink Holding'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 Olink Holding's total debt and its cash.
An Additional Perspective On Olink Holding AB
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 Olink Holding is not uncomon. Institutional investors typically avoid acquiring a high percentage of Olink Holding stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Olink is distributed among investors.
Ownership Allocation
Olink Holding owns a total of 124.34 Million
outstanding shares. Olink Holding holds majority of its outstanding shares owned by
insiders. An
insider is usually defined as a corporate executive, director, member of the board or
institutional investor who own at least 10% of the company's outstanding shares. 68.16 pct. of Olink Holding AB
outstanding shares that are owned by
insiders implies they have been buying or selling the stock in recent months in anticipation of some upcoming event. Also note that almost three million seven hundred thirty thousand two hundred ninety invesors are currently shorting Olink Holding expressing very little confidence in its
future performance.
| Insiders68.16% | Institutions35.23% |
| Retail Investors | -3.39 |
| Insiders | 68.16 |
| Institutions | 35.23 |
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 Olink Holding's 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 Olink Holding's decisions due to their larger holdings.
| 2021 | 2022 | 2023 | 2024 (projected) |
Interest Expense | 2.0M | 531K | 663K | 629.9K | Depreciation And Amortization | 14.1M | 19.0M | 21.8M | 14.7M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Olink Holding has an asset utilization ratio of 33.37 percent. This suggests that the Company is making $0.33 for each dollar of assets. An increasing asset utilization means that Olink Holding AB is more efficient with each dollar of assets it utilizes for everyday operations.
| Net Tangible Assets195.6 M | Non Current Assets Total260.2 M | | | | | |
| Net Tangible Assets | 195.56 Million | 26.63 |
| Non Current Assets Total | 260.21 Million | 35.43 |
| Non Currrent Assets Other | 28.98 | 4.0E-6 |
| Other Assets | 24.35 Million | 3.32 |
| Other Current Assets | 9.4 Million | 1.28 |
| Total Current Assets | 134 Million | 18.25 |
| Intangible Assets | 110.83 Million | 15.09 |
Every cloud has a silver lining, and this seems to be the case for Olink Holding AB (OLK). Despite reporting operating losses of $35.8M and earnings per share of -$0.15, the company has shown strong liquidity with a current ratio of 5.33X and net working capital of $146.4M. Furthermore, the company's end period cash flow stands at a robust $126.9M, indicating a healthy cash position. However, with a beta of 0.49, the stock exhibits lower volatility compared to the market, which could mean slower price movements. Therefore, while the company's
financial health appears solid, its stock performance may continue to show mixed indicators in April.
Possible April reversion of Olink?
The coefficient of variation indicator for Olink Holding AB has notably decreased to -1024.68, hinting at a potential price rise soon. This statistical measure suggests the stock's price volatility is low, indicating less risk and potentially attracting stability-seeking investors. This could boost the stock's demand, leading to a price increase. Therefore, investors should monitor Olink closely in April for a possible shift to a bullish trend. Olink Holding AB shows minimal volatility with a skewness of -3.47 and kurtosis of 21.28. However, investors are advised to further examine Olink's technical indicators to ensure all market information is accurate and reliable. Understanding
market volatility trends can help investors time the market. Proper use of volatility indicators can measure Olink's stock risk against market volatility during both bullish and bearish trends.
The increased volatility of bear markets can impact Olink's stock price and stress investors as they see their share value decrease, often prompting portfolio rebalancing. In light of the recent slow surge of Olink Holding AB (USA Stocks:OLK), the question arises whether we can anticipate a significant upsurge. The stock holds a valuation market value of
23.65 and a real value of
29.11. There is a potential upside price of 26.25 and a possible downside of 23.57. The analyst overall consensus leans towards a 'Buy' recommendation with 2 strong buys and 2 holds. The estimated target price ranges from a low of 34.81 to a high of 42.46, with an average target price of 38.25. Therefore, based on the current valuation and analyst expectations, investors might consider Olink a viable investment opportunity with potential for future growth. However, as always, investors are advised to conduct their due diligence and consider their risk tolerance before investing. .
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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 Aina Ster do not own shares of Olink Holding AB. Please refer to our
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