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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Cutera, Inc. (XNAS:CUTR) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
CUTR
Name:
CUTERA, INC. (XNAS:CUTR)
Sector:
- 29925.00K
Industry:
Medical Devices
CEO:
Mr. David Mowry
Total Employees:
461
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -339.10% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF CUTERA, INC.(CUTR) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND MEDICAL DEVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
46.61
One Month Price Target:
$47.09
Six Month Price Target :
$49.49
Likely Price in One Year's Time:
Ticker:
$52.37
Likely Trading Range Today Under (Normal Volatility)
$46.33
Price Upper limit ($) :
$47.01
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$42.54
This week:
$37.51
This month :
$28.41
Other Primary facts
Market Cap:
894.40M
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
19.58M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
20.41%
-24.93%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$65.49
$56.77
$27.73
$36.45
Medium risk (<10%) entry points
Buy Call
Sell Call
$53.93
Buy Put:
Sell Put:
$52.07
$39.27
$41.15
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
CUTR
Sharpe Ratio:
2.85%
Comparison:
CUTR, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 88.17% higher than the industry
& ratio is 25.05% higher than the market/S&P 500 average
Average Returns/Yield of
CUTR
Daily returns:
0.13%
Weekly returns:
0.66%
Monthly returns:
2.64%
Yearly returns:
15.36%
Comparison of returns:
Average annual returns/yield (last 3 years) is 106.08% above industry average
Classification:
CUTR, is amongst the top 20% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.47
Statistical test of Returns:
CUTR has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
4.32%
Weekly Volatility:
9.65%
Monthly Volatility:
19.30%
Yearly Volatility:
66.87%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.28%
Volatility in last five trading days has been -70.33% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-8.73%
Weekly VaR:
-19.53%
Monthly VaR:
-39.05%
How Much Can the price of
CUTR
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-33%
Worst case (decline):
>85%
This translates to price declining to:
$31.22
This translates to price declining to:
$6.99
Severe Crash Probability
Risk of crash in next 6/12 months: Very high (>70%)
What is Value at Risk (VaR)?
Risk Fundamentals
CUTR is a 175.63% riskier investment compared to the market/S&P 500 & is 136.14% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 37.48% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
CUTR
Beta in relation to market/S&P 500--1.84
Expected beta in 1 year's time:
0.962
Expected beta in 3 year's time:
1.36
Unlevered (debt free) Beta:
0.383
Beta in relation to Nasdaq (XNAS):
0.563
Beta in relation to all global stocks::
0.679
Beta Comparison & Analysis
Beta of competitors/peers::
1.161
Beta is 58.46% higher than peers
Average Industry Beta:
1.065
Beta is 72.84% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
15.80%
Sustainable growth rate is 21.32% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.159
Alpha is 223.42% above industry average alpha yield
Alpha is 1012% higher than market/& is unsustainably high
Analysis of Cost of Capital of
CUTR
Equity cost of capital:
0.158
Equity cost of capital is 50.87% above industry mean WACC
Unlevered (without debt) cost of capital:
3.28%
Before-tax cost of debt:
2.07%
After-tax cost of debt:
1.63%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
1.63%
WACC is 0.59% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$12.24
Revenue growth rate per share of (3Y):
21.14
Annual revenue growth rate is -97.57% below industry average
EPS:
-$0.79
Expected Annual growth rate of EPS (3Y):
0.00%
-
Free cash flow (FCF) per share:
-
-
-
Debt per share
$7.53
EBITDA per share
-$0.35
Valuation Analysis Today of
CUTR
P/E Ratio:
1661.64
P/E Ratio of Competitors/Peers:
102.45
P/E ratio is 1521.83% higher than main peers & is 582.27% higher than the industry
-
CUTR is -124.23% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
3.81
Price to sales ratio is -59.09% below the industry mean
P/B (Price to book value ratio):
21.14
-
-
Net income growth rate (3Y):
-105.14%
Net income growth rate is -208.25% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
341.68%
Net debt to equity ratio:
214.01%
Debt to assets ratio:
55.30%
Net debt to assets ratio:
34.63%
Debt-to-asset ratio is 42.72% above industry average
Ability to repay debt:
Interest coverage ratio:
-2.23
Interest coverage ratio is -116.71% less than industry average
Looking forward:
Debt growth rate:
1489.68%
Annual debt growth is 516% higher than industry average debt growth rate
Debt repayment rate in last quarter: 0.10%
Analysis of Key Statistics
Correlation of price movement with the market:
0.268
Statistical significance of correlation:
CUTR has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.468
Stock price is -42.72% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.468
Correlation of price movement with Nasdaq (^IXIC):
0.044
Covariance of price movement with the market:
0.11
Kurtosis
5.416
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.269
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
CUTR
Gross Profit Margin Ratio:
229%
Operating Profit Margin Ratio:
-5.21%
Operating profit margin is -69.47% lower than the industry
Net Profit Margin Ratio:
229%
Effective Tax Rate:
-11.36%
Effective tax rate is -120.69% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
-29.47%
Return on equity (ROE) is 200.62% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
-4.77%
Return on assets (ROA) is 41.49% higher than the industry
Financial Leverage:
2.2x
Current Ratio:
3.2
Current ratio is -50.53% below industry average
Cash Conversion Cycle (days):
56.5
Cash conversion cycle is 1.30% above industry average
The remaining useful life of property plant & equipment is: 0.0 years
Stock based compensation to net income ratio:
-31.78%
In-depth Efficiency Analysis
Revenue generated per employee:
519.8K
Each employee generates 38% more revenue than industry average revenue per employee
EBITDA generated per employee:
- 15.0K
Each employee generates -340% less EBITDA than industry average revenue per employee
Profit generated per employee:
- 27.6K
Each employee generates -7% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 64.9K
Each employee generates 357% more free cash flow than industry average revenue per employee
Assets/Capital per employee
64.9K
Each employee generates 357% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 50.59%
Growth rate in R&D investment/expenditure is -38683.63% lower than the industry
Competitors/Peer firms of
CUTR
Collegium Pharmaceutical, Inc. (XNAS:COLL)
IMAGO BIOSCIENCES, INC. (XNAS:IMGO)
ABSCI CORPORATION (XNAS:ABSI)
BLUEBIRD BIO, INC. (XNAS:BLUE)
CAREMAX, INC. (XNAS:CMAX)
Precigen, Inc. (XNAS:PGEN)
Surmodics, Inc. (XNAS:SRDX)
EAGLE PHARMACEUTICALS, INC. (XNAS:EGRX)
CATALYST PHARMACEUTICALS, INC. (XNAS:CPRX)
Current Analyst Ratings
Strong buy�4%
Buy�8%
Hold�4%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
239.62M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
102.43M
137.18M
23.96M
39.08M
125.72M
86.64M
-
149.68M
-
3.10M
1.41M
- 6912.00K
- 12492.00K
- 12721.00K
- 11423.00K
1.30M
- 12721.00K
Statement of Cash Flow
Date:
Period:
427.00K
Differed Income Tax :
41.00K
Stock Based Compensation :
4.04M
Change in Working Capital :
- 20408.00K
Accounts Receivables:
- 1912.00K
Other Working Capital:
239.00K
Other Non-Cash Items:
1.44M
Net Cash Provided by Operating Activities:
- 29604.00K
Investments in PP&E:
- 321.00K
Net Acquisitions:
-
Purchases of Investments:
- 74058.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
57.73M
74.05M
131.78M
33.17M
51.68M
20.16M
236.78M
17.34M
1.34M
-
-
737.00K
10.49M
29.91M
-
266.69M
13.65M
2.63M
9.85M
9.72M
48.04M
74.04M
147.47M
680.00K
149.49M
-
223.53M
18.00K
- 73315.00K
- 11.0K
-
March 31, 2022 at 6:00:00 AM
252.11M
43.16M
266.69M
-
150.10M
92.4M
-
-
- 74379.00K
- 150.00K
-
-
-
- 2299.00K
- 2449.00K
-
- 106432.00K
58.43M
164.86M
- 29604.00K
- 321.00K
- 29925.00K
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
CUTR
2023
2024
2025
2026
2027
$52.53
$59.03
$66.33
$74.54
$83.75