Given its current valuation of
$22.08 million and a net asset value of
$8.25 million, Intelligent Bio Solutions shows some potential, but the negative EBITDA of
-$9.5 million and a high short ratio of
6.38X suggest significant operational challenges that warrant caution before considering a buy. With a substantial short interest and a probability of bankruptcy at
30.46%, investors should carefully weigh the risks against the company's modest revenue of
$3.05 million and improving cash flow from financing activities.
Key Points
Investing in Intelligent Bio Solutions over a three-month period carries significant risk. The company’s Efficiency (Sharpe) Ratio stands at just 0.1, indicating a minimal return of 0.1% for each unit of risk taken in the past quarter. Our analysis of twenty-eight technical indicators suggests that the expected 1.99% return may not fully justify the level of risk involved. Key metrics like a Market Risk-Adjusted Performance of 2.55, a risk-adjusted score of 0.0835, and a Downside Deviation of 6.77 highlight the company’s specific risks that can’t be diversified away. Overall, this setup points to a cautious approach, especially if you’re aiming for short-term gains.
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 Intelligent Bio income statement, its balance sheet, and the statement of cash flows. Potential Intelligent Bio investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Intelligent Bio investors may use each financial statement separately, they are all related. The changes in Intelligent Bio's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Intelligent Bio'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 Intelligent Bio
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Intelligent Bio performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Intelligent Bio shares is the value that is considered the true value of the share. If
the intrinsic value of Intelligent 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 Intelligent Bio. Please read more on our
fundamental analysis page.
How effective is Intelligent Bio in utilizing its assets?
Intelligent Bio Solutions reports assets on its Balance Sheet. It represents the amount of Intelligent resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Intelligent Bio 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 Health Care Equipment & Supplies space. To get a better handle on how balance sheet or income statements item affect Intelligent volatility, please check the breakdown of all its
fundamentals.
Are Intelligent Bio Earnings Expected to grow?
The
future earnings power of Intelligent Bio involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Intelligent Bio factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Intelligent Bio
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 Intelligent
expected earnings.
Intelligent Bio Gross Profit
Intelligent Bio Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Intelligent Bio 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 Intelligent Bio Gross Profit growth over the last 10 years. Please check Intelligent Bio's
gross profit and other
fundamental indicators for more details.
Breaking down Intelligent Bio Further
The company reported the previous year's revenue of 3.05
M. Net Loss for the year was (10.6
M) with profit before overhead, payroll, taxes, and interest of 1.42
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 Intelligent Bio's 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 Intelligent Bio's decisions due to their larger holdings.
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Intelligent Bio has an asset utilization ratio of 37.0 percent. This implies that the Company is making $0.37 for each dollar of assets. An increasing asset utilization means that Intelligent Bio Solutions is more efficient with each dollar of assets it utilizes for everyday operations.
| Non Current Assets Total3.4 M | | | | Total Current Assets6.3 M | | Intangible Assets3.6 M |
| Non Current Assets Total | 3.37 Million | 21.76 |
| Non Currrent Assets Other | 1.93 Million | 12.46 |
| Other Assets | 1.32 Million | 8.52 |
| Other Current Assets | 738,134 | 4.77 |
| Total Current Assets | 6.3 Million | 40.73 |
| Net Tangible Assets | (1.76 Million) | -11.36 |
| Intangible Assets | 3.58 Million | 23.12 |
A rising tide lifts all boats, and Intelligent Bio Solutions (NASDAQ:INBS) shows signs of improving fundamentals despite its current challenges. The company’s revenue of $3.1 million and gross profit of $1.42 million indicate some operational stability, but its net income of -$10.6 million highlights ongoing losses. With a market valuation of $22.08 million and a price-to-sales ratio of 6.62X, INBS is trading at a premium relative to its sales, reflecting growth expectations. The company’s high beta of 4.46 suggests significant volatility, and its risk-adjusted performance metrics point to considerable uncertainty, yet its recent financing activities and cash position of $1 million provide some liquidity cushion. Overall, while there are growth signals, investors should weigh the substantial losses and market risks before considering a position.
Intelligent Bio implied volatility may change after the gain
Intelligent Bio Solutions is showing some intriguing signals in its options market, with the latest skewness reaching 5.6. This indicates traders are beginning to price in more uncertainty or potential shifts in future volatility. After recent gains, implied volatility might fluctuate, so keeping an eye on how market sentiment develops could be helpful. If you're thinking about buying or selling, watch how this skewness evolves—it may hint at upcoming changes in the stock’s risk level.
The stock has been more volatile than usual over recent periods, and understanding these trends can help in timing trades. During downturns, increased volatility often impacts the stock’s price and can lead investors to rebalance their portfolios as share values dip.Investing in Intelligent Bio Solutions presents a compelling opportunity, especially with analysts showing a strong buy consensus and a target price estimated around $12. While the stock's valuation market value stands at approximately $17.92, the potential upside of up to $41.56 suggests significant room for growth. However, investors should remain mindful of the possible downside risk, which could bring the price down to around $3.24. Given the current momentum and the optimistic forecasts, this stock could continue to attract attention in February, but due diligence and careful risk assessment are essential before jumping in..
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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 Intelligent Bio Solutions. Please refer to our
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