Macroaxis Stories

Should we be purchasing So Young or AccoladeInc?

January 8, 2024  By Raphi Shpitalnik
Macroaxis Story
By examining the existing fundamental indicators between Accolade Inc. and So Young, we can compare the impact of market volatilities on the prices of both companies. This comparison can help determine if they can diversify away from market risk when combined in one of your portfolios. Pair trading strategies can also be utilized, such as matching a long position in So Young with a short position in Accolade Inc. For more information, please refer to our pair correlation module. Now, let's begin by analyzing the assets. The asset utilization indicator refers to the revenue generated for every dollar of assets a company currently reports. Accolade Inc. has an asset utilization ratio of 40.21 percent. This suggests that the company is generating $0.40 for each dollar of assets. An increasing asset utilization ratio implies that Accolade Inc. is becoming more efficient with each dollar of assets it uses for its daily operations.

Main Ideas

AccoladeInc, a prominent player in the Health Information Services industry, presents a potential buying opportunity as its shares take a dip today. Despite reporting a loss with an income before tax of $463.3M, the company's robust current ratio of 3.33X and a healthy cash and equivalents position of $330.63M indicate strong liquidity and financial health. Furthermore, the company's debt to equity ratio is a mere 0.63%, demonstrating a conservative approach to leverage. Given these factors, coupled with the fact that 84.95% of its shares are owned by institutions, the current dip in AccoladeInc's stock price may present an attractive entry point for discerning investors.
Published over six months ago
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Reviewed by Rifka Kats

Every cloud has a silver lining, and the recent dip in AccoladeInc's shares may just be the opportunity investors have been waiting for. Despite a net income loss of $459.6M, the healthcare technology company has shown resilience with a current ratio of 3.33X, indicating a strong ability to cover its short-term liabilities. The company's cash position is also robust, with cash and equivalents standing at $330.63M, translating to a cash per share ratio of 4.60X. This, coupled with a book value per share of 5.75X, suggests that the company is undervalued at its current market capitalization of $849.2M. Furthermore, the company's shares are trading below their 52-week high of $17.005 and 200-day moving average of $11.6178, presenting a potential buying opportunity. However, investors should be aware of the company's high beta of 2.152, indicating higher volatility compared to the market. Despite the challenges, AccoladeInc's position in the health information services industry and its gross profit of $165.3M signal potential for growth and recovery. It appears that So Young is poised for a quicker recovery as its stock price declined by 3.42% today, compared to Accolade Inc.'s decrease of 0.36%. Given that many prudent traders are steering clear of the healthcare technology sector, it is logical to delve deeper into Accolade Inc. to understand how it measures up against So Young and other comparable companies. We will discuss some of the competitive aspects of both Accolade Inc. and So Young.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Accolade. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its performance over time. Several factors influence the investment perspective on Accolade, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.

How important is Accolade's Liquidity

Accolade financial leverage refers to using borrowed capital as a funding source to finance Accolade ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Accolade 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 Accolade'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 Accolade'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 Accolade's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Accolade, but it might be worth checking our own buy vs. sell analysis

Accolade Gross Profit

Accolade Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Accolade 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 Accolade Gross Profit growth over the last 10 years. Please check Accolade's gross profit and other fundamental indicators for more details.

Is Accolade valued correctly by the market?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check AccoladeInc revenue. Based on the latest financial disclosure, AccoladeInc reported 363.14 M of revenue. This is 95.24% lower than that of the Health Care Technology sector and significantly higher than that of the Health Care industry.
The revenue for all United States stocks is 96.15% higher than that of AccoladeInc. As for So Young we see revenue of 1.26 B, which is much higher than that of the Health Care
AccoladeInc363.14 Million
Sector0.0
So Young1.26 Billion
363.1 M
AccoladeInc
Sector
1.3 B
So Young
"Buy when others are fearful" is a time-tested investing wisdom that seems apt for AccoladeInc's current situation. The NASDAQ-listed healthcare company's shares have taken a dip today, presenting a potential buying opportunity for discerning investors. Despite a net income loss of $459.6 million, the company has a robust current ratio of 3.33X and a healthy net asset position of $903.07 million, suggesting it has the resources to weather short-term financial storms. The company's beta of 2.15 indicates a higher volatility compared to the market, but this could mean greater potential for returns in a bullish market scenario. Moreover, the company's shares are largely owned by institutions (84.95%), a sign of confidence from the professional investing community. However, investors should be aware of the high probability of bankruptcy at 68.18% and make a balanced decision considering the risk-reward ratio. .

AccoladeInc has a small chance to finish above $11.36 in 2 months

Accolade Inc.'s stock, with a recent kurtosis measure of 3.02, indicates a relatively normal distribution of returns. This suggests a lower probability of extreme price swings, implying a reduced likelihood of the stock breaching the $11.36 mark in the next two months. While it's always crucial to consider other market factors, this statistical insight provides a glimpse into the potential stability of Accolade Inc.'s future performance. Accolade Inc. exhibits an above-average semi-deviation for the current time horizon. We encourage investors to investigate Accolade Inc. individually to ensure that intended market timing strategies and available technical indicators are consistent with their estimates about Accolade Inc.'s future systematic risk. Understanding different market volatility trends often helps investors to time the market. Properly using volatility indicators enables traders to measure Accolade Inc.'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 Accolade Inc.'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. Despite the recent dip in AccoladeInc's stock price, the overall analyst consensus remains a 'Buy'. Out of 14 estimates, there are 9 strong buys and 2 buys, indicating a positive outlook. The analyst target price estimated value is at $14.5, presenting a possible upside price of $14.28. However, investors should also be aware of the potential downside price of $6.46. The company's valuation real value stands at $11.62, slightly higher than its current market value of $11.14. Given these factors, the dip in AccoladeInc's stock may present a buying opportunity for investors, but it's essential to consider the risk associated with the EPS estimate for the next fiscal year ending in February, which is projected to be -$1.31. .

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Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. 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 Raphi Shpitalnik do not own shares of Accolade. Please refer to our Terms of Use for any information regarding our disclosure principles.

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