Our prognosis on Eyenovia (NASDAQ:EYEN) to bounce back in April


USD 1.69  0.07  3.98%   

As many millenniums are trying to avoid healthcare space, it makes sense to outline Eyenovia a little further and try to understand its current market patterns. We will analyze why it could be a much better year for Eyenovia shareholders. Is the firm valuation justified? Here we go over Eyenovia perspective on valuation to give you a better outlook on taking a position in this stock.
Published over six months ago
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Eyenovia currently holds 7.28 M in liabilities with Debt to Equity (D/E) ratio of 1.72, which is about average as compared to similar companies. This firm has a current ratio of 1.11, suggesting that it is not liquid enough and may have problems paying out its financial obligations when due. Debt can assist Eyenovia until it has trouble settling it off, either with new capital or with free cash flow. So, Eyenovia's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Eyenovia sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Eyenovia to invest in growth at high rates of return. When we think about Eyenovia's use of debt, we should always consider it together with cash and equity.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Eyenovia has an asset utilization ratio of 94.87 percent. This suggests that the company is making $0.95 for each dollar of assets. An increasing asset utilization means that Eyenovia is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Eyenovia 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 Eyenovia based exclusively on its fundamental and basic technical indicators. By analyzing Eyenovia'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 Eyenovia'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 Eyenovia. We calculate exposure to Eyenovia's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Eyenovia's related companies.

Eyenovia Investment Alerts

Eyenovia 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 Eyenovia performance across your portfolios.Please check all investment alerts for Eyenovia

Eyenovia Valuation Ratios as Compared to Competition

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

How does Eyenovia utilize its cash?

To perform a cash flow analysis of Eyenovia, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Eyenovia is receiving and how much cash it distributes out in a given period. The Eyenovia cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Eyenovia Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (22.52 Million)

Purchase by Strahlman Ellen R of 6686 shares of Eyenovia

Legal trades by Eyenovia insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Eyenovia insider trading alert for perchase of common stock par value $.0001 by Strahlman Ellen R, the corporate stakeholder, on 31st of August 2022. This event was filed by Eyenovia Inc with SEC on 2022-08-31. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Eyenovia Investor Appetite?

The latest slide in stock price could raise concerns from institutional investors as the firm is trading at a share price of 3.00 on 89,298 in volume. The company directors and management have failed to build on market volatilities in February. However, diversifying your overall positions with Eyenovia may protect your principal portfolio during upcoming market swings. The stock standard deviation of daily returns for 90 days investing horizon is currently 3.38. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Eyenovia partners.

Margins Breakdown

Eyenovia profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Eyenovia itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Eyenovia profit margins.
EBITDA Margin(9.55)
Gross Margin0.54
Profit Margin(9.6)

Eyenovia Average Equity is quite stable at the moment. Moreover, Eyenovia Earnings before Tax is quite stable at the moment.

Are Eyenovia technical ratios showing a bounce back?

Latest mean deviation is at 2.51. Eyenovia exhibits very low volatility with skewness of 0.27 and kurtosis of 0.7. However, we advise investors to further study Eyenovia technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Eyenovia's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Eyenovia's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Eyenovia Implied Volatility

Eyenovia's implied volatility exposes the market's sentiment of Eyenovia stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Eyenovia's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Eyenovia stock will not fluctuate a lot when Eyenovia's options are near their expiration.

Whereas some firms in the biotechnology industry are either recovering or due for a correction, Eyenovia may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Eyenovia as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Eyenovia.

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 Gabriel Shpitalnik do not own shares of Eyenovia. Please refer to our Terms of Use for any information regarding our disclosure principles.

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