Will Casi Pharmaceuticals (NASDAQ:CASI) debt increase in September

CASI
 Stock
  

USD 2.89  0.29  11.15%   

Casi Pharmaceuticals is scheduled to announce its earnings today. Casi Pharmaceuticals Enterprise Value is most likely to increase significantly in the upcoming years. The preceding year's Enterprise Value was reported at 59.8 Million. The current Invested Capital is estimated to increase to about 80.1 M, while Net Income Per Employee is projected to decrease to (224.7 K). While some baby boomers are getting worried about healthcare space, it is reasonable to concentrate on Casi Pharmaceuticals as an investment alternative.
Published over a month ago
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The company currently holds 1.88 M in liabilities with Debt to Equity (D/E) ratio of 0.02, which may suggest the firm is not taking enough advantage from borrowing. Casi Pharmaceuticals has a current ratio of 3.72, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Casi Pharmaceuticals until it has trouble settling it off, either with new capital or with free cash flow. So, Casi Pharmaceuticals' 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 Casi Pharmaceuticals sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Casi Pharmaceuticals to invest in growth at high rates of return. When we think about Casi Pharmaceuticals' use of debt, we should always consider it together with cash and equity.
Casi Pharmaceuticals financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Casi Pharmaceuticals, including all of Casi Pharmaceuticals's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Casi Pharmaceuticals assets, the company is considered highly leveraged. Understanding the composition and structure of overall Casi Pharmaceuticals debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

How important is Casi Pharmaceuticals's Liquidity

Casi Pharmaceuticals financial leverage refers to using borrowed capital as a funding source to finance Casi Pharmaceuticals ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Casi Pharmaceuticals 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. Please check the breakdown between Casi Pharmaceuticals's total debt and its cash.

How does Casi Pharmaceuticals utilize its cash?

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

Acquisition by Alexander Zukiwski of 3000 shares of Casi Pharmaceuticals subject to Rule 16b-3

Legal trades by Casi Pharmaceuticals 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:
Casi Pharmaceuticals insider trading alert for grant of employee stock option (right to buy) by Alexander Zukiwski, EVP and Chief Medical Officer, on 9th of September 2022. This event was filed by Casi Pharmaceuticals Inc with SEC on 2022-09-09. 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.

Another Deeper Perspective

The entity reported the previous year's revenue of 33.49 M. Net Loss for the year was (31.37 M) with profit before overhead, payroll, taxes, and interest of 17.61 M.

Liabilities Breakdown

14.2 M
Current Liabilities
13.6 M
Long-Term Liabilities
Total Liabilities32.73 Million
Current Liabilities14.23 Million
Long-Term Liabilities13.6 Million

Will Casi Pharmaceuticals continue to go bananas?

The downside deviation is down to 7.42 as of today. Casi Pharmaceuticals is displaying above-average volatility over the selected time horizon. Investors should scrutinize Casi Pharmaceuticals independently to ensure intended market timing strategies are aligned with expectations about Casi Pharmaceuticals volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Casi Pharmaceuticals' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Casi Pharmaceuticals' 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.

Casi Pharmaceuticals Implied Volatility

Casi Pharmaceuticals' implied volatility exposes the market's sentiment of Casi Pharmaceuticals stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Casi Pharmaceuticals' 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 Casi Pharmaceuticals stock will not fluctuate a lot when Casi Pharmaceuticals' options are near their expiration.

Our Final Takeaway

While other companies in the biotechnology industry are either recovering or due for a correction, Casi Pharmaceuticals may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Casi Pharmaceuticals valuation and our trade advice on Casi Pharmaceuticals is due to the recent market swings and your selection of investing horizon. 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 Casi Pharmaceuticals.

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 Raphi Shpitalnik do not own shares of Casi Pharmaceuticals. Please refer to our Terms of Use for any information regarding our disclosure principles.

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