Is Clovis Oncology (NASDAQ:CLVS) valuation reasonable?

CLVS
 Stock
  

USD 1.17  0.12  11.43%   

As many millenniums are excited about healthcare space, it is only fair to sum up Clovis Oncology. Why are we still confident in anticipation of a complete recovery. Is current the firm value sustainable? We will go over Clovis Oncology valuation drivers to give you a better outlook on taking a position in it.
Published over three months ago
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This firm currently holds 623.62 M in liabilities with Debt to Equity (D/E) ratio of 810.0, indicating Clovis Oncology may have difficulties to generate enough cash to satisfy its financial obligations.
We provide trade advice to complement the prevailing expert consensus on Clovis Oncology. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
We determine the current worth of Clovis Oncology using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Clovis Oncology based exclusively on its fundamental and basic technical indicators. By analyzing Clovis Oncology's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Clovis Oncology's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Clovis Oncology. We calculate exposure to Clovis Oncology's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Clovis Oncology's related companies.

Watch out for price decline

Please consider monitoring Clovis Oncology on a daily basis if you are holding a position in it. Clovis Oncology is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Clovis Oncology stock to be traded above the $1 level to remain listed. If Clovis Oncology stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

Clovis Oncology Investment Alerts

Clovis investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Clovis Oncology performance across your portfolios.Please check all investment alerts for Clovis

Clovis Oncology Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Clovis value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Clovis Oncology competition to find correlations between indicators driving the intrinsic value of Clovis.

How does Clovis utilize its cash?

To perform a cash flow analysis of Clovis Oncology, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Clovis Oncology is receiving and how much cash it distributes out in a given period. The Clovis Oncology cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Another angle On Clovis Oncology

The company reported the previous year's revenue of 156.09 M. Net Loss for the year was (299.09 M) with profit before overhead, payroll, taxes, and interest of 128.39 M.
 2019 2020 2021 2022 (projected)
Receivables22.74 M28.39 M25.56 M27.57 M
Inventories26.52 M30.71 M27.64 M26.32 M

Margins Breakdown

Clovis profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Clovis Oncology itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Clovis Oncology profit margins.
EBITDA Margin(1.61)
Gross Margin0.79
Profit Margin(1.92)


Clovis Oncology Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 8 years. Clovis Oncology Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years. Furthermore, Clovis Oncology Revenue Per Employee is relatively stable at the moment. Clovis Oncology Earnings Before Interest Taxes and Depreciation Amortization USD is relatively stable at the moment. Clovis Oncology Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years. The latest value of Clovis Oncology Earnings Before Interest Taxes and Depreciation Amortization EBITDA is -239,881,289. Furthermore, Clovis Oncology Revenue Per Employee is relatively stable at the moment.

Another 3 percent spike for Clovis Oncology

Latest mean deviation is at 5.51.
As of the 2nd of April, Clovis Oncology shows the risk adjusted performance of (0.027136), and Mean Deviation of 5.51. Clovis Oncology technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for Clovis Oncology, which can be compared to its rivals. Please confirm Clovis Oncology coefficient of variation, maximum drawdown, as well as the relationship between the Maximum Drawdown and skewness to decide if Clovis Oncology is priced correctly, providing market reflects its regular price of 2.5 per share. Please also double-check Clovis Oncology total risk alpha, which is currently at 0.2767 to validate the company can sustain itself at a future point.

While some other firms in the biotechnology industry are either recovering or due for a correction, Clovis Oncology may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 2nd of April 2022, we see that Clovis Oncology hyperactively responds to market trends. The enterprise is undervalued with high odds of financial turmoil within the next 24 months. Our actual 90 days buy-or-sell advice on the enterprise is Hold.

Editorial Staff

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 Vlad Skutelnik do not own shares of Clovis Oncology. Please refer to our Terms of Use for any information regarding our disclosure principles.

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