Asset Breakdown
Assets Non Current
59.5 M
Current Assets
| Total Assets | 63.1 Million | |
| Current Assets | 59.51 Million | |
| Assets Non Current | 3.2 Million |
Will Vyne Therapeutics (USA Stocks:VYNE) be in financial trouble before September?
 | By Ellen Johnson | Macroaxis Story |
Vyne Therapeutics, a prominent player in the Biotechnology industry, has seen a significant surge in its stock price, defying the modest market downturn. The stock has seen a 13.59% price percent change, a substantial increase that signals potential for considerable returns. However, it's important to note that Vyne's financial health presents some concerns. The company reported a loss in its operating income, amounting to $34.3M, and its free cash flow is also in the negative territory, with a loss of $29.2M. Investors should be aware of the company's risk profile. Vyne's total risk alpha stands at -0.14, indicating a potential for loss, and its mean deviation is 5.17, suggesting a higher level of volatility. Despite these risks, the significant surge in Vyne's stock price demonstrates that the company can provide substantial leverage opportunities for investors who are willing to take on a higher level of risk. However, as with any investment, it's crucial to thoroughly evaluate the company's financial health and risk profile before making an investment decision.
Further analysis
The company, Vyne Therapeutics, currently holds 349K in liabilities. The asset utilization indicator refers to the revenue earned for every dollar of assets a company presently reports. Vyne Therapeutics has an asset utilization ratio of 1.17 percent, which suggests that the company is earning $0.0117 for each dollar of assets. An increase in asset utilization signifies that Vyne Therapeutics is becoming more efficient with each dollar of assets it uses for daily operations.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Michael Smolkin
Vyne Therapeutics, a key player in the Healthcare and Biotechnology industry, recently saw its stock (USA Stocks: VYNE) surge over 13%, defying a modest market downturn. This uptick is particularly impressive considering the company's financials. Vyne's total stockholder equity stands at a modest $31.2M, with total assets amounting to $40.8M. Despite a total revenue of only $477K, the company's total operating expenses are a staggering $34.8M, leading to a net income loss of $23.2M. This financial situation is further complicated by a retained earnings loss of $662.7M. However, the company's valuation market value stands at $5.6, with a real value of $13.11, indicating a possible upside price of $12.29. This potential, coupled with the fact that all three analysts covering the stock have given it a 'Buy' rating, suggests that Vyne Therapeutics may still be a promising investment despite its financial challenges. It's worth noting that the company has a negative net debt of $31.3M, indicating a strong cash position, which could provide some financial stability in the future. The forthcoming quarterly report for Vyne Therapeutics is anticipated on August 11, 2023. The stock has been experiencing above-average trading activities. Based on the trends from the last few years of reporting, Vyne Therapeutics' Average Assets are projected to see a significant increase. The Average Assets for the previous year were reported at $51.79 million. The Average Equity for the current year is expected to grow to approximately $50.8 million, while the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) are projected to decline to -$25 million. As interest in the biotechnology sector grows, it's important to examine Vyne Therapeutics in more detail to better assess its debt utilization. We will further discuss whether this could be a much more prosperous year for Vyne Therapeutics shareholders.Vyne Therapeutics financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Vyne Therapeutics, including all of Vyne Therapeutics'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 Vyne Therapeutics assets, the company is considered highly leveraged. Understanding the composition and structure of overall Vyne Therapeutics 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 Vyne Total Liabilities
Vyne Therapeutics liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Vyne Therapeutics 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 Vyne Therapeutics balance sheet include debt obligations and money owed to different Vyne Therapeutics vendors, workers, and loan providers. Below is the chart of Vyne short long-term liabilities accounts currently reported on its balance sheet. You can use Vyne Therapeutics financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Vyne Therapeutics's Liquidity
Vyne Therapeutics financial leverage refers to using borrowed capital as a funding source to finance Vyne Therapeutics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Vyne Therapeutics 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 Vyne Therapeutics' 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 Vyne Therapeutics' 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 Vyne Therapeutics's total debt and its cash.
Breaking it down a bit more
The latest dip in stock price may raise some interest from shareholders as it is trading at a share price of 5.60 on 22,440 in trading volume. The company directors and management have failed to build on market volatilities in July. However, diversifying your overall positions with Vyne Therapeutics may protect your principal portfolio during upcoming market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 6.78. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Vyne Therapeutics partners.
Vyne Therapeutics (NASDAQ: VYNE), a key player in the biotechnology industry, has seen its stock surge over 13%, defying a modest market downturn. The company, which has a market capitalization of 16.13 million, has a high current ratio of 7.60X, indicating a strong ability to meet its short-term obligations. Despite a high probability of bankruptcy at 96.00%, the company's stock has shown resilience with a risk-adjusted performance of 0.0415.Vyne Therapeutics has a total stockholder equity of 31.2 million, with 11.00% of shares owned by institutions and 1.40% by insiders. The company's total operating expenses stand at 34.8 million, with a significant portion of this being selling, general and administrative expenses at 16.4 million. The company reported a net income loss of 23.2 million, with an operating income loss of 34.3 million. Despite these losses, Vyne Therapeutics has a healthy cash position, with cash and short-term investments amounting to 30.9 million. The company also has a net debt of -31.3 million, indicating a surplus of cash over debt. However, the company's total revenue stands at a modest 477K, reflecting the challenges faced in the biotechnology industry. In conclusion, while Vyne Therapeutics faces significant financial challenges, its strong cash position and institutional backing provide some level of assurance for investors. However, the high probability of bankruptcy and significant operating losses highlight the risks associated with investing in this stock. .
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