Will Monte Rosa continue to dip in December?
 | By Vlad Skutelnik | Macroaxis Story |
Monte Rosa Therapeutics has $46.04 million in liabilities and a Debt to Equity (D/E) ratio of 0.16, indicating limited use of borrowing. With a current ratio of 19.71, the company is well-positioned to meet its financial obligations. When evaluating Monte Rosa's debt, it's important to consider its cash and equity positions. The company has a performance score of 11 out of 100 and a Beta of 5.01, suggesting high market risk. This means it could outperform in a rising market but may underperform if the market declines. To assess potential returns, consider using metrics like the Sortino ratio, skewness, period momentum indicator, and the relationship between potential upside and rate of daily change.
Key Discoveries
Monte Rosa Therapeutics' stock exhibits significant volatility, as highlighted by its Coefficient of Variation of 771.99, suggesting that price swings are substantial and could lead to unpredictable movements. With a Maximum Drawdown of 95.03, the stock has experienced severe declines, indicating that while a rebound is possible, investors should brace for potential further declines in December.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
In the ever-evolving landscape of biotechnology, change is the only constant. Monte Rosa Therapeutics, a player in the healthcare sector, has been experiencing notable stock volatility, leaving investors pondering its future trajectory. With a fiscal year ending in December, the company has caught the attention of analysts, who have issued a strong buy consensus. Despite this optimistic outlook, the stock's recent performance has been less than stellar, with a period momentum indicator of -0.15 and a daily balance of power at -0.19, suggesting bearish sentiment. However, the analyst's highest estimated target price of $20.54 offers a glimmer of hope for those considering a rebound. As December unfolds, investors are keenly watching to see if Monte Rosa Therapeutics can overcome its current challenges and capitalize on its potential upside. Monte Rosa Therapeutics is currently offering a daily expected return of 1.96% with a risk level, or volatility, of 13.40% over the next 90 days. As interest in the biotechnology sector grows, it's important for investors to consider Monte Rosa's volatility. Here are a few key points for shareholders to keep in mind about this stock's fluctuations.Volatility is a rate at which the price of Monte Rosa or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Monte Rosa may increase or decrease. In other words, similar to Monte's beta indicator, it measures the risk of Monte Rosa and helps estimate the fluctuations that may happen in a short period of time. So if prices of Monte Rosa fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Monte Rosa's Liquidity
Monte Rosa financial leverage refers to using borrowed capital as a funding source to finance Monte Rosa Therapeutics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Monte Rosa 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 Monte Rosa'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 Monte Rosa'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 Monte Rosa's total debt and its cash.
Monte Rosa Gross Profit
Monte Rosa Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Monte Rosa 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 Monte Rosa Gross Profit growth over the last 10 years. Please check Monte Rosa's gross profit and other fundamental indicators for more details.
Monte Rosa Volatility Drivers
Monte Rosa unsystematic risk is unique to Monte Rosa Therapeutics and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in Monte Rosa you can also buy Lyell Immunopharma. You can also mitigate this risk by investing in the health care sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing Monte Rosa important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in Monte Rosa income statement and balance sheet. Here are more details about Monte volatility.Click cells to compare fundamentals
Detailed Outlook On Monte Rosa
The latest price surge of Monte Rosa Therapeutics may raise some interest from shareholders. The stock closed today at a share price of 9.22 on 1,848,447 in trading volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in December. The stock standard deviation of daily returns for 90 days investing horizon is currently 13.4. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Monte Rosa Therapeutics partners.In the stock market, volatility is the price of admission for the potential of high returns. Monte Rosa Therapeutics, trading on the NASDAQ, is currently experiencing significant fluctuations, with a beta of 1.42 indicating higher volatility compared to the broader market. The company's financial health shows a robust current ratio of 20.11, suggesting it has ample liquidity to cover short-term obligations. However, with a probability of bankruptcy at 36.91%, investors should weigh the risks carefully. As December approaches, the biotech firm faces a critical juncture, with its market capitalization standing at $575.06 million and a potential upside of 12.43. Whether Monte Rosa will rebound or continue its decline remains uncertain, but the high standard deviation of 13.17 underscores the potential for significant price swings..
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