Is Avita Medical Stock a Good Investment?
Avita Medical Investment Advice | RCEL |
- Examine Avita Medical'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 Avita Medical's leadership team and their track record. Good management can help Avita Medical 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 Avita Medical's business and its evolving consumer preferences.
- Compare Avita Medical's performance and market position to its competitors. Analyze how Avita Medical is positioned in terms of product offerings, innovation, and market share.
- Check if Avita Medical pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Avita Medical'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 Avita Medical 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 Avita Medical is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Good | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Quite High | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Avita Medical Stock
Researching Avita Medical'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 25.0% of the company shares are owned by institutional investors. The company recorded a loss per share of 2.23. Avita Medical had not issued any dividends in recent years. The entity had 1:5 split on the 30th of June 2020.
To determine if Avita Medical 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 Avita Medical's research are outlined below:
| Avita Medical appears to be risky and price may revert if volatility continues | |
| Avita Medical has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the previous year's revenue of 50.14 M. Net Loss for the year was (35.38 M) with profit before overhead, payroll, taxes, and interest of 28.38 M. | |
| Avita Medical currently holds about 84.17 M in cash with (38.01 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.67. | |
| Avita Medical has a poor financial position based on the latest SEC disclosures | |
| Latest headline from insidermonkey.com: AVITA Medical, Inc. Q3 2024 Earnings Call Transcript |
Avita Medical Quarterly Cost Of Revenue |
|
Avita Medical 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 Avita Medical. 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 Avita Medical'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.
| 22nd of February 2024 Upcoming Quarterly Report | View | |
| 9th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 22nd of February 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 Avita Medical'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 Avita Medical's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2020-02-18 | 2019-12-31 | -0.03 | -0.0662 | -0.0362 | 120 | ||
2021-05-14 | 2021-03-31 | -0.3 | -0.26 | 0.04 | 13 | ||
2023-02-23 | 2022-12-31 | -0.29 | -0.22 | 0.07 | 24 | ||
2024-08-08 | 2024-06-30 | -0.52 | -0.6 | -0.08 | 15 | ||
2024-02-22 | 2023-12-31 | -0.37 | -0.28 | 0.09 | 24 | ||
2023-08-10 | 2023-06-30 | -0.32 | -0.41 | -0.09 | 28 | ||
2023-11-09 | 2023-09-30 | -0.44 | -0.34 | 0.1 | 22 | ||
2020-11-10 | 2020-09-30 | -0.38 | -0.48 | -0.1 | 26 |
Know Avita Medical's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Avita Medical is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Avita Medical backward and forwards among themselves. Avita Medical's institutional investor refers to the entity that pools money to purchase Avita Medical'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 | Awm Investment Company Inc | 2024-06-30 | 73.2 K | Bank Of New York Mellon Corp | 2024-06-30 | 72.7 K | Nuveen Asset Management, Llc | 2024-06-30 | 71.7 K | Charles Schwab Investment Management Inc | 2024-06-30 | 70.9 K | Jane Street Group Llc | 2024-06-30 | 67.4 K | Ameriprise Financial Inc | 2024-06-30 | 43.7 K | Curi Rmb Capital | 2024-06-30 | 43 K | Hussman Strategic Advisors Inc | 2024-06-30 | 42 K | Bank Of America Corp | 2024-06-30 | 41 K | Blackrock Inc | 2024-06-30 | 1.8 M | Vanguard Group Inc | 2024-06-30 | 1.4 M |
Avita Medical's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 329.82 M.Market Cap |
|
Avita Medical's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.31) | (0.33) | |
| Return On Capital Employed | (0.36) | (0.38) | |
| Return On Assets | (0.31) | (0.33) | |
| Return On Equity | (0.36) | (0.38) |
Determining Avita Medical's profitability involves analyzing its financial statements and using various financial metrics to determine if Avita Medical is a good buy. For example, gross profit margin measures Avita Medical'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 Avita Medical's profitability and make more informed investment decisions.
Avita Medical's Earnings Breakdown by Geography
Evaluate Avita Medical's management efficiency
Avita Medical has return on total asset (ROA) of (0.4537) % which means that it has lost $0.4537 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (1.5244) %, meaning that it created substantial loss on money invested by shareholders. Avita Medical's management efficiency ratios could be used to measure how well Avita Medical manages its routine affairs as well as how well it operates its assets and liabilities. The value of Return On Tangible Assets is estimated to slide to -0.33. The value of Return On Capital Employed is expected to slide to -0.38. At this time, Avita Medical's Net Current Asset Value is quite stable compared to the past year. Tangible Asset Value is expected to rise to about 4.1 M this year, although the value of Intangible Assets will most likely fall to about 462.6 K.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 5.73 | 5.44 | |
| Net Current Asset Value | 2.2 M | 2.9 M | |
| Tangible Asset Value | 2.4 M | 4.1 M | |
| Tangible Book Value Per Share | 5.69 | 5.41 | |
| Enterprise Value Over EBITDA | (4.03) | (4.23) | |
| Price Book Value Ratio | 1.19 | 1.13 | |
| Enterprise Value Multiple | (4.03) | (4.23) | |
| Price Fair Value | 1.19 | 1.13 | |
| Enterprise Value | 124.9 M | 131.1 M |
Avita Medical benefits from a proactive management team that anticipates market trends. Our analysis delves into how this proactive stance influences financial metrics and stock valuation.
Beta 1.543 |
Basic technical analysis of Avita Stock
As of the 15th of November 2024, Avita Medical shows the Risk Adjusted Performance of 0.1489, downside deviation of 2.9, and Mean Deviation of 2.33. In respect to fundamental indicators, the technical analysis model gives you tools to check existing technical drivers of Avita Medical, as well as the relationship between them. Please confirm Avita Medical jensen alpha, as well as the relationship between the potential upside and skewness to decide if Avita Medical is priced correctly, providing market reflects its regular price of 11.95 per share. Given that Avita Medical has jensen alpha of 0.2718, we suggest you to validate Avita Medical's prevailing market performance to make sure the company can sustain itself at a future point.Avita Medical'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 Avita Medical insiders, such as employees or executives, is commonly permitted as long as it does not rely on Avita Medical'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 Avita Medical 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.
Avita Medical's Outstanding Corporate Bonds
Avita Medical 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. Avita Medical 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 Avita bonds can be classified according to their maturity, which is the date when Avita Medical 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.
| AVNET INC 4625 Corp BondUS053807AS28 | View | |
| AVT 55 01 JUN 32 Corp BondUS053807AV56 | View | |
| AVT 3 15 MAY 31 Corp BondUS053807AU73 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View |
Understand Avita Medical's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Avita Medical'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.
| Risk Adjusted Performance | 0.1489 | |||
| Market Risk Adjusted Performance | 0.2666 | |||
| Mean Deviation | 2.33 | |||
| Semi Deviation | 2.28 | |||
| Downside Deviation | 2.9 | |||
| Coefficient Of Variation | 539.52 | |||
| Standard Deviation | 2.99 | |||
| Variance | 8.94 | |||
| Information Ratio | 0.139 | |||
| Jensen Alpha | 0.2718 | |||
| Total Risk Alpha | 0.0412 | |||
| Sortino Ratio | 0.1436 | |||
| Treynor Ratio | 0.2566 | |||
| Maximum Drawdown | 14.73 | |||
| Value At Risk | (3.33) | |||
| Potential Upside | 5.77 | |||
| Downside Variance | 8.38 | |||
| Semi Variance | 5.19 | |||
| Expected Short fall | (2.71) | |||
| Skewness | 0.1097 | |||
| Kurtosis | 0.57 |
| Risk Adjusted Performance | 0.1489 | |||
| Market Risk Adjusted Performance | 0.2666 | |||
| Mean Deviation | 2.33 | |||
| Semi Deviation | 2.28 | |||
| Downside Deviation | 2.9 | |||
| Coefficient Of Variation | 539.52 | |||
| Standard Deviation | 2.99 | |||
| Variance | 8.94 | |||
| Information Ratio | 0.139 | |||
| Jensen Alpha | 0.2718 | |||
| Total Risk Alpha | 0.0412 | |||
| Sortino Ratio | 0.1436 | |||
| Treynor Ratio | 0.2566 | |||
| Maximum Drawdown | 14.73 | |||
| Value At Risk | (3.33) | |||
| Potential Upside | 5.77 | |||
| Downside Variance | 8.38 | |||
| Semi Variance | 5.19 | |||
| Expected Short fall | (2.71) | |||
| Skewness | 0.1097 | |||
| Kurtosis | 0.57 |
Consider Avita Medical's intraday indicators
Avita Medical 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 Avita Medical 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.
| Accumulation Distribution | 6802.01 | |||
| Daily Balance Of Power | (0.68) | |||
| Rate Of Daily Change | 0.95 | |||
| Day Median Price | 12.12 | |||
| Day Typical Price | 12.06 | |||
| Price Action Indicator | (0.48) | |||
| Period Momentum Indicator | (0.63) |
Avita Medical Corporate Filings
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 20th of August 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F3 | 3rd of July 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
| 23rd of April 2024 Other Reports | ViewVerify |
Avita Stock media impact
Far too much social signal, news, headlines, and media speculation about Avita Medical that are available to investors today. That information is available publicly through Avita media outlets and privately through word of mouth or via Avita internal channels. However, regardless of the origin, that massive amount of Avita 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 Avita Medical 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 Avita Medical 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 Avita Medical's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Avita Medical alpha.
Avita Medical Corporate Management
| Rob Hall | Senior Resources | Profile | |
| Michael MBA | Chief Officer | Profile | |
| Jessica Ekeberg | Investor Executive | Profile | |
| David OToole | Chief Officer | Profile | |
| Kathy McGee | Chief Officer | Profile | |
| Terry Bromley | Senior Sales | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Avita Medical. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. For more information on how to buy Avita Stock please use our How to buy in Avita Stock guide.You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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 Avita Medical. If investors know Avita 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 Avita Medical listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (2.23) | Revenue Per Share 2.335 | Quarterly Revenue Growth 0.432 | Return On Assets (0.45) | Return On Equity (1.52) |
The market value of Avita Medical is measured differently than its book value, which is the value of Avita that is recorded on the company's balance sheet. Investors also form their own opinion of Avita Medical's value that differs from its market value or its book value, called intrinsic value, which is Avita Medical'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 Avita Medical's market value can be influenced by many factors that don't directly affect Avita Medical'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 Avita Medical's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Avita Medical is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Avita Medical'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.