Windtree Therapeutics (NASDAQ: WINT) has recently generated buzz among investors following some promising developments in its biotechnology pipeline. However, the company is facing challenges, with a current valuation of just
4.98M and a free cash flow loss of
13.5M, raising concerns about its financial health. Despite a solid current ratio of 2.47X, indicating adequate liquidity, the substantial selling and marketing expenses of
9.2M could weigh heavily on future profitability. Investors should weigh these factors carefully as they consider the potential upside of this stock amidst its ongoing financial struggles.
Major Takeaways
Our recommendation tool evaluates the current analyst consensus on Windtree Therapeutics and examines the company's growth potential in today's economic climate. Since Windtree Therapeutics is not expected to pay dividends this year, it’s focusing on preserving and reinvesting its funds. While investing in stocks without dividends might seem risky, these investments can still yield significant returns through capital appreciation. As the company thrives and its stock price increases, investors have the opportunity to sell their shares for a profit. In this case, the potential for growth could be more rewarding than immediate cash payouts.
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 Windtree Therapeutics income statement, its balance sheet, and the statement of cash flows. Potential Windtree Therapeutics investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Windtree Therapeutics investors may use each financial statement separately, they are all related. The changes in Windtree Therapeutics's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Windtree Therapeutics'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 Windtree Therapeutics
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Windtree Therapeutics performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Windtree Therapeutics shares is the value that is considered the true value of the share. If
the intrinsic value of Windtree 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 Windtree Therapeutics. Please read more on our
fundamental analysis page.
Watch out for price decline
Please consider monitoring Windtree Therapeutics on a daily basis if you are holding a position in it. Windtree Therapeutics is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Windtree Therapeutics stock to be traded above the $1 level to remain listed. If Windtree Therapeutics stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How effective is Windtree Therapeutics in utilizing its assets?
Windtree Therapeutics reports assets on its Balance Sheet. It represents the amount of Windtree resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Windtree Therapeutics aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Biotechnology space. To get a better handle on how balance sheet or income statements item affect Windtree volatility, please check the breakdown of all its
fundamentals.
Are Windtree Therapeutics Earnings Expected to grow?
The
future earnings power of Windtree Therapeutics involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Windtree Therapeutics factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Windtree Therapeutics
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Windtree
expected earnings.
Windtree Therapeutics Gross Profit
Windtree Therapeutics Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Windtree Therapeutics 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 Windtree Therapeutics Gross Profit growth over the last 10 years. Please check Windtree Therapeutics'
gross profit and other
fundamental indicators for more details.
Breaking it down a bit more
Net Loss for the year was (20.29
M) with loss before overhead, payroll, taxes, and interest of (17.79
M).
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 Windtree Therapeutics' 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 Windtree Therapeutics' decisions due to their larger holdings.
| 2021 | 2022 | 2023 | 2024 (projected) |
Short Long Term Debt Total | 2.9M | 2.3M | 16.8M | 9.8M | Total Assets | 74.8M | 38.0M | 32.4M | 42.3M |
Asset Utilization
One of the ways to look at asset utilization of Windtree is to check how much profit was generated for every dollar of assets it reports. Windtree Therapeutics maintains a negative usage of resources of -0.34 (%), losing $0.003358 for each dollar of resources held by the company. Inadequate asset utilization attests that the company is being less effective with each dollar of resources it maintains. Specifically, asset utilization of Windtree Therapeutics shows how discouraging it operates for each dollar spent on its resources.
| Non Current Assets Total18 M | | | | | Intangible Assets41.8 M |
| Total Current Assets | 5.11 Million | 8.38 |
| Non Current Assets Total | 18 Million | 29.53 |
| Other Current Assets | 889,514 | 1.46 |
| Non Currrent Assets Other | 142,500 | 0.23 |
| Other Assets | 0.0 | 0.0 |
| Net Tangible Assets | (5.02 Million) | -8.23 |
| Intangible Assets | 41.85 Million | 68.63 |
In the world of investing, opportunity often comes wrapped in uncertainty. Windtree Therapeutics (NASDAQ: WINT) has recently made headlines with promising developments, but its financials raise red flags for potential investors. The company reported a staggering loss of 20.3 million, driven by total operating expenses of 17.5 million, while its current ratio stands at a healthy 2.47X, indicating liquidity. However, with a probability of bankruptcy at 95.44% and a trailing P/E ratio of just 0.77, investors must weigh the risks against the potential upside of 16.39%. As Windtree navigates the volatile biotechnology landscape, those considering a stake should proceed with caution, keeping an eye on both the promising news and the underlying fundamentals.
Will Windtree Therapeutics newest gain continue?
Windtree Therapeutics has recently experienced a remarkable surge, with its stock volatility soaring by over 460.67%. This dramatic increase raises questions about whether this momentum can be sustained. Investors are closely monitoring the situation to see if the upward trend continues, especially in light of the company's ongoing developments in the therapeutic field. As excitement grows, the market's reaction will be key in determining if Windtree can hold onto its gains or if a correction is on the horizon. The stock's above-average volatility means that understanding market trends is crucial for investors. High volatility, especially during bear markets, can significantly affect Windtree's stock price, often leading investors to adjust their portfolios as they navigate fluctuating values.
Our Final Take On Windtree Therapeutics
Whereas other companies within the biotechnology industry are still a little expensive, even after the recent corrections, Windtree Therapeutics may offer a potential longer-term growth to private investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor drop any shares of Windtree Therapeutics at this time. The Windtree Therapeutics risk-reward trade off is not appealing enough to do any trading. 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 Windtree Therapeutics.
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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 Windtree Therapeutics. Please refer to our
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