Is Biofrontera Stock a Good Investment?

Biofrontera Investment Advice

  BFRI
To provide specific investment advice or recommendations on Biofrontera stock, we recommend investors consider the following general factors when evaluating Biofrontera. This will help you to make an informed decision on whether to include Biofrontera in one of your diversified portfolios:
  • Examine Biofrontera's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Biofrontera's leadership team and their track record. Good management can help Biofrontera navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Biotechnology space and any emerging trends that could impact Biofrontera's business and its evolving consumer preferences.
  • Compare Biofrontera's performance and market position to its competitors. Analyze how Biofrontera is positioned in terms of product offerings, innovation, and market share.
  • Check if Biofrontera pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Biofrontera's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Biofrontera stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Biofrontera is a good investment.
 
Sell
 
Buy
Strong Sell
We provide trade advice to complement the prevailing expert consensus on Biofrontera. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Biofrontera is not overpriced, please confirm all Biofrontera fundamentals, including its total debt, beta, and the relationship between the ebitda and short ratio . As Biofrontera appears to be a penny stock we also recommend to validate its shares owned by institutions numbers.

Market Performance

Very WeakDetails

Volatility

UnstableDetails

Hype Condition

StaleDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Very HighDetails

Economic Sensitivity

Moves completely opposite to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

FrailDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails

Examine Biofrontera Stock

Researching Biofrontera's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 32.0% of the company shares are held by company insiders. The company has price-to-book (P/B) ratio of 1.26. Some equities with similar Price to Book (P/B) outperform the market in the long run. Biofrontera had not issued any dividends in recent years. The entity had 1:20 split on the 5th of July 2023.
To determine if Biofrontera is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Biofrontera's research are outlined below:
Biofrontera generated a negative expected return over the last 90 days
Biofrontera has high historical volatility and very poor performance
Biofrontera has some characteristics of a very speculative penny stock
Biofrontera has a very high chance of going through financial distress in the upcoming years
The company reported the previous year's revenue of 34.07 M. Net Loss for the year was (20.13 M) with profit before overhead, payroll, taxes, and interest of 13.49 M.
Biofrontera currently holds about 31.91 M in cash with (24.89 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.36, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
Biofrontera has a frail financial position based on the latest SEC disclosures
Roughly 32.0% of the company shares are held by company insiders
Latest headline from MacroaxisInsider: Acquisition by Hermann Luebbert of 190840 shares of Biofrontera subject to Rule 16b-3

Biofrontera Quarterly Cash And Short Term Investments

2.88 Million

Biofrontera uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Biofrontera. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Biofrontera's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
11th of March 2024
Upcoming Quarterly Report
View
10th of May 2024
Next Financial Report
View
31st of December 2023
Next Fiscal Quarter End
View
11th of March 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
31st of December 2022
Last Financial Announcement
View
Earnings surprises can significantly impact Biofrontera's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Biofrontera's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2023-03-08
2022-12-31-0.11-0.14-0.0327 
2022-04-08
2022-03-31-0.18-0.150.0316 
2021-12-31
2021-12-31-0.18-0.150.0316 
2023-05-12
2023-03-31-0.19-0.28-0.0947 
2022-11-14
2022-09-30-0.29-0.110.1862 
2022-08-12
2022-06-30-0.34-0.050.2985 
2024-08-14
2024-06-30-0.77-0.050.7293 
2023-11-09
2023-09-30-3.78-4.64-0.8622 

Know Biofrontera's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Biofrontera is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Biofrontera backward and forwards among themselves. Biofrontera's institutional investor refers to the entity that pools money to purchase Biofrontera's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Royal Bank Of Canada2024-06-30
11.0
Renaissance Technologies Corp2024-06-30
0.0
Xtx Topco Ltd2024-06-30
0.0
Hrt Financial Llc2024-06-30
0.0
Aigh Capital Management, Llc2024-09-30
501.4 K
Rosalind Advisors, Inc.2024-09-30
495.5 K
Scotia Capital Inc2024-06-30
120 K
Geode Capital Management, Llc2024-09-30
17.1 K
Tower Research Capital Llc2024-06-30
10.5 K
Ubs Group Ag2024-06-30
10 K
Blackrock Inc2024-06-30
4.6 K
Note, although Biofrontera's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Biofrontera's market capitalization trends

The company currently falls under 'Nano-Cap' category with a current market capitalization of 7.67 M.

Market Cap

4.07 Million

Biofrontera's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets(0.80)(0.84)
Return On Capital Employed(2.30)(2.19)
Return On Assets(0.72)(0.76)
Return On Equity(4.20)(3.99)
The company has Profit Margin (PM) of (0.38) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (0.65) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.65.
Determining Biofrontera's profitability involves analyzing its financial statements and using various financial metrics to determine if Biofrontera is a good buy. For example, gross profit margin measures Biofrontera's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Biofrontera's profitability and make more informed investment decisions.

Evaluate Biofrontera's management efficiency

Biofrontera has return on total asset (ROA) of (0.4024) % which means that it has lost $0.4024 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (1.4941) %, meaning that it created substantial loss on money invested by shareholders. Biofrontera's management efficiency ratios could be used to measure how well Biofrontera manages its routine affairs as well as how well it operates its assets and liabilities. The current Return On Tangible Assets is estimated to decrease to -0.84. The Biofrontera's current Return On Capital Employed is estimated to increase to -2.19. As of now, Biofrontera's Total Current Assets are increasing as compared to previous years. The Biofrontera's current Intangible Assets is estimated to increase to about 2.8 M, while Non Currrent Assets Other are projected to decrease to under 457.9 K.
Last ReportedProjected for Next Year
Book Value Per Share 3.10  3.25 
Tangible Book Value Per Share 1.40  1.47 
Enterprise Value Over EBITDA(0.45)(0.47)
Price Book Value Ratio 0.89  0.85 
Enterprise Value Multiple(0.45)(0.47)
Price Fair Value 0.89  0.85 
Enterprise Value8.3 M7.9 M
The strategic initiatives led by Biofrontera's management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.
Beta
0.509

Basic technical analysis of Biofrontera Stock

As of the 1st of December, Biofrontera shows the Downside Deviation of 7.7, risk adjusted performance of 0.0234, and Mean Deviation of 6.21. Biofrontera technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

Biofrontera's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Biofrontera insiders, such as employees or executives, is commonly permitted as long as it does not rely on Biofrontera's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Biofrontera insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Biofrontera's Outstanding Corporate Bonds

Biofrontera issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Biofrontera uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Biofrontera bonds can be classified according to their maturity, which is the date when Biofrontera has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Biofrontera's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Biofrontera's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Biofrontera's intraday indicators

Biofrontera intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Biofrontera stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Biofrontera time-series forecasting models is one of many Biofrontera's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Biofrontera's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Biofrontera Stock media impact

Far too much social signal, news, headlines, and media speculation about Biofrontera that are available to investors today. That information is available publicly through Biofrontera media outlets and privately through word of mouth or via Biofrontera internal channels. However, regardless of the origin, that massive amount of Biofrontera data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Biofrontera news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Biofrontera relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Biofrontera's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Biofrontera alpha.

Biofrontera Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Biofrontera can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Biofrontera Corporate Management

Daniel JDGeneral ComplianceProfile
Jon MBAVice AffairsProfile
Erica CPACOO, CEOProfile
Jeff HolmHead DevelProfile
Mark BaldygaHead MarketingProfile
Alycia TorresVice AdministrationProfile
When determining whether Biofrontera offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Biofrontera's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Biofrontera Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Biofrontera Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Biofrontera. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area.
For more detail on how to invest in Biofrontera Stock please use our How to Invest in Biofrontera guide.
You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Biofrontera. If investors know Biofrontera will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Biofrontera listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
1.16
Revenue Per Share
11.573
Quarterly Revenue Growth
0.34
Return On Assets
(0.40)
Return On Equity
(1.49)
The market value of Biofrontera is measured differently than its book value, which is the value of Biofrontera that is recorded on the company's balance sheet. Investors also form their own opinion of Biofrontera's value that differs from its market value or its book value, called intrinsic value, which is Biofrontera's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Biofrontera's market value can be influenced by many factors that don't directly affect Biofrontera's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Biofrontera's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Biofrontera is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Biofrontera's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.