Editas Medicine, Inc. (XNAS:EDIT) In-Depth Stock/Fundamental/Options Analysis Today

Primary Facts

EDIT

Name:

EDITAS MEDICINE, INC. (XNAS:EDIT)

Sector:

- 51475.00K

Industry:

Biotechnology

CEO:

Ms. Cynthia Collins

Total Employees:

264

Our Technological Advancement Rating

Our Rating:

Technological advancement compared to industry is 29.06% higher

ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF EDITAS MEDICINE, INC.(EDIT) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND BIOTECHNOLOGY INDUSTRY. DATE: 07/09/2022

Primary Targets/Price Insights

Previous Close ($) :

14.83

One Month Price Target:

$15.

Six Month Price Target :

$15.84

Likely Price in One Year's Time:

Ticker:

$16.85

Likely Trading Range Today Under (Normal Volatility)

$14.7

Price Upper limit ($) :

$14.97

Price Lower limit ($) :

Crash Risk Prep/Key Price Levels (High Volatility/Risk)

Price, as per data analysis, isn't likely to fall below:

Today:

$13.2

This week:

$11.18

This month :

$7.53

Other Primary facts

Market Cap:

1.02B

Market Cap Classification:

Small Cap

Number of Shares

IPO Date:

68.74M

Best/Worst Daily Performance (Last 3+ Years)

Highest Daily Appreciation:

32.15%

-23.1%

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:

$22.40

$18.95

$7.26

$10.71

Medium risk (<10%) entry points

Buy Call

Sell Call

$17.82

Buy Put:

Sell Put:

$17.08

$11.83

$12.58

These entry points can be used for other strategies, such as butterflies, straddles, etc.

Risk-Adjusted returns (Sharpe Ratio) of

EDIT

Sharpe Ratio:

0.62%

Comparison:

EDIT, is amongst the top 60% stocks with highest risk-adjusted returns

Sharpe ratio is -68.19% lower than the industry

& is -72.86% lower than the market/S&P 500 average

Average Returns/Yield of

EDIT

Daily returns:

0.04%

Weekly returns:

0.21%

Monthly returns:

0.84%

Yearly returns:

25.22%

Comparison of returns:

Average annual returns/yield (last 3 years) is -59.94% below industry average

Classification:

EDIT, is amongst the top 60% highest yielding stocks in terms of daily returns

Results of T-Test of Returns:

0.92

Statistical test of Returns:

EDIT has yielded returns statistically similar to the market

Volatility (measured by Standard Deviation)

Daily Volatility:

5.38%

Weekly Volatility:

12.02%

Monthly Volatility:

24.04%

Yearly Volatility:

83.29%

Volitlilty of last five days (Measured by Standard Deviation)

Average Volatility of this Week:

4.04%

Volatility in last five trading days has been -24.87% below long-term volatility

Value at Risk Analysis (VaR)

Daily VaR:

-11.00%

Weekly VaR:

-24.60%

Monthly VaR:

-49.19%

How Much Can the price of

EDIT

Decline in a Recession?

Likely price decline in a recession:

Base case (decline):

-43%

Worst case (decline):

>85%

This translates to price declining to:

$8.45

This translates to price declining to:

$2.22

Severe Crash Probability

Risk of crash in next 6/12 months: Low (<25%)

What is Value at Risk (VaR)?

Risk Fundamentals

EDIT is a 247.20% riskier investment compared to the market/S&P 500 & is 197.44% riskier than Nasdaq (IXIC)

Risk (measured by volatility) is 13.08% above industry average

Overall, it is amongst the top 50% most risky stocks

Beta Examination of

EDIT

Beta in relation to market/S&P 500--2.03

Expected beta in 1 year's time:

1.084

Expected beta in 3 year's time:

1.532

Unlevered (debt free) Beta:

Beta in relation to Nasdaq (XNAS):

1.6

Beta in relation to all global stocks::

0.986

Beta Comparison & Analysis

Beta of competitors/peers::

1.233

Beta is 64.37% higher than peers

Average Industry Beta:

1.152

Beta is 76.00% above industry average

Sustainable Growth Rate Analysis

Sustainable growth rate for this stock/firm:

Alpha provided | Alpha Analysis

Alpha provided:

-0.069

Alpha is -148.86% below industry average alpha yield

Alpha is -441% below the market average

Analysis of Cost of Capital of

EDIT

Equity cost of capital:

0.170

Equity cost of capital is 54.32% above industry mean WACC

Unlevered (without debt) cost of capital:

Before-tax cost of debt:

2.02%

After-tax cost of debt:

1.60%

Overall debt rating:

Highest AAA investment grade

Weighted average cost of capital (WACC):

1.60%

WACC is 81.51% above industry mean WACC

Key Per-Share Metrics & Analysis

Revenue per share:

$0.38

Revenue growth rate per share of (3Y):

1.99

Annual revenue growth rate is -107.73% below industry average

EPS:

-$2.73

Expected Annual growth rate of EPS (3Y):

2.07%

Expected future EPS growth rate is -79.25% lower than the Biotechnology industry

Free cash flow (FCF) per share:

Debt per share

$0.19

EBITDA per share

-$2.62

Valuation Analysis Today of

EDIT

P/E Ratio:

P/E Ratio of Competitors/Peers:

44.39

EDIT is -106.05% undervalued if valued using industry average P/E ratio

P/S (Price to Sales ratio):

39.49

Price to sales ratio is -2.51% below the industry mean

P/B (Price to book value ratio):

1.99

Net income growth rate (3Y):

21.94%

Net income growth rate is -68.91% lower than the industry average net income growth rate

Dividend Analysis

Dividend History:

--$0.00

In-depth Debt & Leverage Analysis

Debt to equity ratio:

2.53%

Net debt to equity ratio:

-36.61%

Debt to assets ratio:

2.08%

Net debt to assets ratio:

-30.13%

Debt-to-asset ratio is -95.07% below industry average

Ability to repay debt:

Interest coverage ratio:

-384.59

Interest coverage ratio is 224.98% more than industry average

Looking forward:

Debt growth rate:

0.93%

Annual debt growth is -99% lower than industry average debt growth rate

Debt repayment rate in last quarter: 0.00%

Analysis of Key Statistics

Correlation of price movement with the market:

0.448

Statistical significance of correlation:

EDIT has a statistically significant correlation with the market

Average Correlation of the industry with the market:

0.34

Stock price is 31.64% more correlated with the market, compared to the industry average correlation

R Squared (percentage of price movement explained by movement of the market):

0.34

Correlation of price movement with Nasdaq (^IXIC):

-0.042

Covariance of price movement with the market:

-0.131

Kurtosis

4.136

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:

0.575

Returns are right (positive) skewed; mean returns are greater than median and mode returns

Fundamental Analysis & Dupont Analysis of

EDIT

Gross Profit Margin Ratio:

Operating Profit Margin Ratio:

-724.41%

Operating profit margin is 68.99% higher than the industry

Net Profit Margin Ratio:

Effective Tax Rate:

Dupont Method

Net Profit Margin

Return on Equity Ratio (ROE):

ROA

-36.33%

Return on equity (ROE) is -36.63% lower than the industry

Financial Leverage

Asset Turnover Ratio (ROA):

-29.90%

Return on assets (ROA) is 46.53% higher than the industry

Financial Leverage:

1.0x

Current Ratio:

13.62

Current ratio is 68.20% above industry average

Cash Conversion Cycle (days):

The remaining useful life of property plant & equipment is: 4.8 years

Stock based compensation to net income ratio:

-6.14%

In-depth Efficiency Analysis

Revenue generated per employee:

97.8K

Each employee generates -94% less revenue than industry average revenue per employee

EBITDA generated per employee:

- 683.2K

Each employee generates -277% less EBITDA than industry average revenue per employee

Profit generated per employee:

- 705.6K

Each employee generates -651% less net income/profit than industry average revenue per employee

Free cash flow (FCF) generated per employee:

- 195.0K

Each employee generates -232% less free cash flow than industry average revenue per employee

Assets/Capital per employee

477.6K

Each employee generates -232% less free cash flow than industry average revenue per employee

Research & Development (R&D) Analysis

Research & development (R&D) investment growth rate-- -9.80%

Growth rate in R&D investment/expenditure is 173.25% higher than the industry

Competitors/Peer firms of

EDIT

XENCOR, INC. (XNAS:XNCR)

RUBIUS THERAPEUTICS, INC. (XNAS:RUBY)

ALLSCRIPTS HEALTHCARE SOLUTIONS, INC. (XNAS:MDRX)

SEER, INC. (XNAS:SEER)

IRHYTHM TECHNOLOGIES, INC. (XNAS:IRTC)

HEALTHCARE SERVICES GROUP, INC. (XNAS:HCSG)

HEALTH CATALYST, INC. (XNAS:HCAT)

AXONICS, INC. (XNAS:AXNX)

Outset Medical, Inc. (XNAS:OM)

Current Analyst Ratings

Strong buy�0%

Buy�17%

Hold�17%

Sell�0%

Strong sell�0%

Overall analyst sentiment is: Buy

Income Statement

Period:

TTM

Date:

3/31/22

Revenue:

25.82M

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:

138.55M

74.28M

212.83M

2.68M

469.00K

5.45M

- 180372.00K

- 187014.00K

- 186289.00K

Statement of Cash Flow

Date:

Period:

1.56M

Differed Income Tax :

Stock Based Compensation :

11.43M

Change in Working Capital :

- 11935.00K

Accounts Receivables:

- 1105.00K

Other Working Capital:

- 5516.00K

Other Non-Cash Items:

234.00K

Net Cash Provided by Operating Activities:

- 49227.00K

Investments in PP&E:

- 2248.00K

Net Acquisitions:

Purchases of Investments:

- 60381.00K

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

210.88M

277.48M

488.36M

1.37M

7.30M

497.03M

40.72M

78.05M

7.32M

126.08M

623.11M

4.69M

10.21M

5.82M

15.79M

36.50M

12.96M

73.85M

110.35M

7.00K

- 908214.00K

- 2509.0K

1.42B

March 31, 2022 at 6:00:00 AM

212.83M

512.76M

623.11M

355.53M

23.16M

- 187718.0K

119.00M

56.37M

218.00K

7.36M

214.76M

207.40M

- 49227.00K

- 2248.00K

- 51475.00K

Our Proprietary Portfolio Rating

Our Rating:

A+

Price Forecast/Expected Price in Next 5 Years of

EDIT

2023

2024

2025

2026

2027

$16.90

$19.21

$21.82

$24.79

$28.17

RISK CONCERN

​Investment Strategy, Risk Analysis, and Insights by Chartered Professionals

Editas Medicine, Inc. (XNAS:EDIT) In-Depth Stock/Fundamental/Options Analysis Today

Primary Facts

Our Technological Advancement Rating

Primary Targets/Price Insights

Likely Trading Range Today Under (Normal Volatility)

Crash Risk Prep/Key Price Levels (High Volatility/Risk)

Other Primary facts

Best/Worst Daily Performance (Last 3+ Years)

Our Options Trading Entry Points

Risk-Adjusted returns (Sharpe Ratio) of

EDIT

Average Returns/Yield of

EDIT

Volatility (measured by Standard Deviation)

Volitlilty of last five days (Measured by Standard Deviation)

Value at Risk Analysis (VaR)

How Much Can the price of

EDIT

Decline in a Recession?

Severe Crash Probability

What is Value at Risk (VaR)?

Risk Fundamentals

Beta Examination of

EDIT

Beta Comparison & Analysis

Sustainable Growth Rate Analysis

Alpha provided | Alpha Analysis

Analysis of Cost of Capital of

EDIT

Key Per-Share Metrics & Analysis

Valuation Analysis Today of

EDIT

Dividend Analysis

In-depth Debt & Leverage Analysis

Analysis of Key Statistics

Fundamental Analysis & Dupont Analysis of

EDIT

In-depth Efficiency Analysis

Research & Development (R&D) Analysis

Competitors/Peer firms of

EDIT

Current Analyst Ratings

Income Statement

Balance Sheet

Statement of Cash Flow

Our Proprietary Portfolio Rating

Price Forecast/Expected Price in Next 5 Years of

EDIT

Back to Top

SUPPORT US ON PATREON!

Investment Strategy, Risk Analysis, and Insights by Chartered Professionals