Chembio Diagnostics Profitability Analysis

CEMI
 Stock
  

USD 0.86  0.01  1.18%   

For Chembio Diagnostics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Chembio Diagnostics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Chembio Diagnostics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Chembio Diagnostics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Chembio Diagnostics over time as well as its relative position and ranking within its peers. Continue to Trending Equities.
  
Chembio Diagnostics Price to Sales Ratio is most likely to increase slightly in the upcoming years. The last year's value of Price to Sales Ratio was reported at 0.58. The current Sales per Share is estimated to increase to 2.04, while Return on Sales is projected to decrease to (0.67) . The current Accumulated Other Comprehensive Income is estimated to decrease to about (608 K). The current Consolidated Income is estimated to decrease to about (34.8 M).

Chembio Diagnostics Revenues

41.89 Million

Is Chembio Diagnostics' industry 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 Chembio Diagnostics. If investors know Chembio 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 Chembio Diagnostics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
26.8 M
Quarterly Revenue Growth YOY
0.42
Return On Assets
-0.3
Return On Equity
-2.06
The market value of Chembio Diagnostics is measured differently than its book value, which is the value of Chembio that is recorded on the company's balance sheet. Investors also form their own opinion of Chembio Diagnostics' value that differs from its market value or its book value, called intrinsic value, which is Chembio Diagnostics' 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 Chembio Diagnostics' market value can be influenced by many factors that don't directly affect Chembio Diagnostics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Chembio Diagnostics' value and its price as these two are different measures arrived at by different means. Investors typically determine Chembio Diagnostics value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Chembio Diagnostics' 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.

Chembio Diagnostics Current Liabilities vs. Cash per Share Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Chembio Diagnostics's current stock value. Our valuation model uses many indicators to compare Chembio Diagnostics value to that of its competitors to determine the firm's financial worth.
Chembio Diagnostics is number one stock in cash per share category among related companies. It is number one stock in current liabilities category among related companies creating about  3,894,862  of Current Liabilities per Cash per Share. Chembio Diagnostics Current Liabilities is most likely to increase significantly in the upcoming years. The last year's value of Current Liabilities was reported at 15.28 Million. Comparative valuation analysis is a catch-all model that can be used if you cannot value Chembio Diagnostics by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Chembio Diagnostics' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Chembio Diagnostics' earnings, one of the primary drivers of an investment's value.

Chembio Current Liabilities vs. Cash per Share

Cash per Share is a ratio of current cash on hands or in the banks of the company to a total number of shares outstanding. It is used to determine a firm's liquidity and is a good indicator of the overall financial health of a company. Value investors often compare this ratio to the current stock quote, and if it exceeds the stock price they would invest in it.
Chembio Diagnostics 
Cash per Share 
 = 
Total Cash 
Average Shares 
0.81 X
Companies with high Cash per Share ratio will be considered as an attractive investment by most investors. In most industries if you can single out an equity instrument trading below its cash per share value, you have a bargain and should consider buying it. Finding the stocks traded below their cash value, therefore, can be a good starting point for investors using strategies based on fundamentals.
Current Liabilities is the company's short term debt. This usually includes obligations that are due within the next 12 months or within one fiscal year. Current liabilities are very important in analyzing a company's financial health as it requires the company to convert some of its current assets into cash.
Chembio Diagnostics 
Current Liabilities 
 = 
Payables 
Accrued Debt 
3.15 M
Current liabilities appear on the company's balance sheet and include all short term debt accounts, accounts and notes payable, accrued liabilities as well as current payments due on the long-term loans. One of the most useful applications of Current Liabilities is the current ratio which is defined as current assets divided by its current liabilities. High current ratios mean that current assets are more than sufficient to pay off current liabilities.

Chembio Current Liabilities Comparison

Chembio Diagnostics is currently under evaluation in current liabilities category among related companies.

Chembio Diagnostics Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Chembio Diagnostics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Chembio Diagnostics will eventually generate negative long term returns. The profitability progress is the general direction of Chembio Diagnostics' change in net profit over the period of time. It can combine multiple indicators of Chembio Diagnostics, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-592.4 K-608 K
Consolidated Income-33.9 M-34.8 M
Net Income-33.9 M-34.8 M
Net Income Common Stock-33.9 M-34.8 M
Operating Income-31.1 M-31.9 M
Income Tax Expense-62 K-66.9 K
Net Income Per Employee-100.6 K-103.3 K
Chembio Diagnostics, Inc., together with its subsidiaries, develops, manufactures, and commercializes point-of-care diagnostic tests that are used to detect or diagnose diseases. Chembio Diagnostics, Inc. was founded in 1985 and is headquartered in Hauppauge, New York. Chembio Diagnostics operates under Diagnostics Research classification in the United States and is traded on NASDAQ Exchange. It employs 337 people.

Chembio Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Chembio Diagnostics. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Chembio Diagnostics position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Chembio Diagnostics' important profitability drivers and their relationship over time.

Chembio Diagnostics Profitability Trends

Chembio Diagnostics profitability trend refers to the progression of profit or loss within a business. An upward trend means that Chembio Diagnostics' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Chembio Diagnostics' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Chembio Diagnostics Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Chembio Diagnostics different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Chembio Diagnostics in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Chembio Diagnostics' future profitability.

Use Chembio Diagnostics in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Chembio Diagnostics position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chembio Diagnostics will appreciate offsetting losses from the drop in the long position's value.

Chembio Diagnostics Pair Trading

Chembio Diagnostics Pair Trading Analysis

The ability to find closely correlated positions to Chembio Diagnostics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Chembio Diagnostics when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Chembio Diagnostics - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Chembio Diagnostics to buy it.
The correlation of Chembio Diagnostics is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Chembio Diagnostics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Chembio Diagnostics moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Chembio Diagnostics can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Chembio Diagnostics position

In addition to having Chembio Diagnostics in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Continue to Trending Equities. Note that the Chembio Diagnostics information on this page should be used as a complementary analysis to other Chembio Diagnostics' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

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To fully project Chembio Diagnostics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Chembio Diagnostics at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Chembio Diagnostics' income statement, its balance sheet, and the statement of cash flows.
Potential Chembio Diagnostics investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Chembio Diagnostics investors may work on each financial statement separately, they are all related. The changes in Chembio Diagnostics's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Chembio Diagnostics'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.