| 2022 | 2024 | 2025 (projected) | Total Stockholder Equity | 401.9M | 528.6M | 338.4M | Total Current Liabilities | 888.6K | 1.0M | 970.8K |
Is Tekla Life (USA Stocks:HQL) low volatility a good sign for institutional investors?
 | By Vlad Skutelnik | Macroaxis Story |
Volatility is the spice of investing, and for those eyeing Tekla Life Sciences (HQL), understanding its market dynamics is crucial. With a daily balance of power at 1.56, the stock shows a significant tilt towards bullish sentiment, suggesting that buyers currently have the upper hand. However, the accumulation distribution figure of 0.01 indicates a relatively flat trend in terms of capital flow, which might raise questions about the stock's underlying strength. The day median price hovers around $12.74, closely aligning with its valuation market value of $12.81, hinting at a market consensus on its current worth. For institutional investors, these metrics provide a snapshot of stability, but the potential upside price of $15.53 also highlights room for growth. As with any investment, the key lies in balancing these indicators to gauge whether HQL is a steadfast opportunity or a more volatile play. Tekla Life Sciences is currently delivering a daily return of 0.0654%, with a volatility of 1.9552% over a 60-day period. While some investors are concerned about the broader market conditions, Tekla Life Sciences presents itself as a potential investment option. We need to evaluate whether the expected returns are sufficient to offset its volatility. Despite its low volatility, we believe Tekla Life Sciences is overvalued at present. Our analysis suggests that its true value is approximately $12.23 per share.
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Reviewed by Rifka Kats
Considering Tekla Life Sciences' modest price change of 0.28 and a downside variance of 3.74, the stock exhibits a level of volatility that may deter risk-averse institutional investors seeking stability. With a maximum drawdown of 10.67, potential buyers should weigh the risk of significant short-term losses against their long-term investment strategy.
Critical Takeaways
Tekla Life Sciences currently holds about $292,400 in cash and generates a positive cash flow from operations of $12.8 million. This translates to a cash-per-share (CPS) ratio of $0.01.Volatility is a rate at which the price of Tekla Life 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 Tekla Life may increase or decrease. In other words, similar to Tekla's beta indicator, it measures the risk of Tekla Life and helps estimate the fluctuations that may happen in a short period of time. So if prices of Tekla Life 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 Tekla Life's Liquidity
Tekla Life financial leverage refers to using borrowed capital as a funding source to finance Tekla Life Sciences ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Tekla Life 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 Tekla Life'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 Tekla Life'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 Tekla Life's total debt and its cash.
Tekla Life Gross Profit
Tekla Life Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Tekla Life 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 Tekla Life Gross Profit growth over the last 10 years. Please check Tekla Life's gross profit and other fundamental indicators for more details.
Tekla Life Volatility Drivers
Tekla Life unsystematic risk is unique to Tekla Life Sciences 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 Tekla Life you can also buy Tekla World Healthcare. You can also mitigate this risk by investing in the financials 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 Tekla Life 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 Tekla Life income statement and balance sheet. Here are more details about Tekla volatility.Click cells to compare fundamentals
A Deeper Analysis
The latest indifference towards the small price fluctuations of Tekla Life may raise some interest from institutional investors. The stock closed today at a share price of 12.81 on very low momentum in trading volume. The company directors and management did not add any value to Tekla Life Sciences investors in May. However, most investors can still diversify their portfolios with Tekla Life to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.96.The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
Warren Buffett once noted that "volatility is far from synonymous with risk," a sentiment that resonates with Tekla Life Sciences (HQL) as it navigates the complex waters of the capital markets. With a beta of 0.68, HQL exhibits lower volatility compared to the broader market, suggesting a degree of stability that might appeal to institutional investors. However, its cash per share stands at a mere 0.01X, indicating limited liquidity, which could be a point of concern for those looking for robust financial flexibility. Despite these challenges, the stock's price-to-book ratio of 0.78X may present an undervalued opportunity, especially for investors who are adept at balancing risk with potential upside..
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