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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Heska Corporation (XNAS:HSKA) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
HSKA
Name:
HESKA CORPORATION (XNAS:HSKA)
Sector:
- 17999.00K
Industry:
Medical Devices
CEO:
Mr. Kevin Wilson
Total Employees:
655
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -46.33% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF HESKA CORPORATION(HSKA) 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 ($) :
86.1
One Month Price Target:
$86.81
Six Month Price Target :
$90.37
Likely Price in One Year's Time:
Ticker:
$94.65
Likely Trading Range Today Under (Normal Volatility)
$85.64
Price Upper limit ($) :
$86.63
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$80.17
This week:
$72.83
This month :
$59.56
Other Primary facts
Market Cap:
931.51M
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
10.82M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
16.17%
-24.34%
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:
$113.64
$101.04
$58.56
$71.16
Medium risk (<10%) entry points
Buy Call
Sell Call
$96.94
Buy Put:
Sell Put:
$94.25
$75.23
$77.95
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
HSKA
Sharpe Ratio:
1.02%
Comparison:
HSKA, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is -32.88% lower than the industry
& is -55.40% lower than the market/S&P 500 average
Average Returns/Yield of
HSKA
Daily returns:
0.04%
Weekly returns:
0.22%
Monthly returns:
0.86%
Yearly returns:
15.36%
Comparison of returns:
Average annual returns/yield (last 3 years) is -32.52% below industry average
Classification:
HSKA, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.81
Statistical test of Returns:
HSKA has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
3.38%
Weekly Volatility:
7.55%
Monthly Volatility:
15.10%
Yearly Volatility:
52.32%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.74%
Volatility in last five trading days has been -48.62% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-6.89%
Weekly VaR:
-15.41%
Monthly VaR:
-30.83%
How Much Can the price of
HSKA
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-27%
Worst case (decline):
>85%
This translates to price declining to:
$63.05
This translates to price declining to:
$12.92
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
HSKA is a 117.56% riskier investment compared to the market/S&P 500 & is 86.39% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 7.57% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
HSKA
Beta in relation to market/S&P 500--1.48
Expected beta in 1 year's time:
1.05
Expected beta in 3 year's time:
1.485
Unlevered (debt free) Beta:
1.25
Beta in relation to Nasdaq (XNAS):
0.95
Beta in relation to all global stocks::
0.73
Beta Comparison & Analysis
Beta of competitors/peers::
1.333
Beta is 10.77% higher than peers
Average Industry Beta:
1.065
Beta is 38.71% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
0.47%
Sustainable growth rate is -96.37% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.029
Alpha is -159.10% below industry average alpha yield
Alpha is -185% below the market average
Analysis of Cost of Capital of
HSKA
Equity cost of capital:
0.133
Equity cost of capital is 27.03% above industry mean WACC
Unlevered (without debt) cost of capital:
11.23%
Before-tax cost of debt:
2.23%
After-tax cost of debt:
1.76%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
1.76%
WACC is 44.14% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$23.85
Revenue growth rate per share of (3Y):
2.17
Annual revenue growth rate is -88.33% below industry average
EPS:
-$1.27
Expected Annual growth rate of EPS (3Y):
-18.07%
Expected future EPS growth rate is -256.02% lower than the Medical Devices industry
Free cash flow (FCF) per share:
-
-
-
Debt per share
$9.82
EBITDA per share
-$0.14
Valuation Analysis Today of
HSKA
P/E Ratio:
667.36
P/E Ratio of Competitors/Peers:
36.94
P/E ratio is 1706.40% higher than main peers & is 174.02% higher than the industry
-
HSKA is -127.84% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
3.61
Price to sales ratio is -61.22% below the industry mean
P/B (Price to book value ratio):
2.17
-
-
Net income growth rate (3Y):
-114.15%
Net income growth rate is -217.52% 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:
24.79%
Net debt to equity ratio:
-14.93%
Debt to assets ratio:
17.66%
Net debt to assets ratio:
-10.64%
Debt-to-asset ratio is -54.42% below industry average
Ability to repay debt:
Interest coverage ratio:
-0.62
Interest coverage ratio is -104.68% less than industry average
Looking forward:
Debt growth rate:
92.27%
Annual debt growth is -62% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.06%
Analysis of Key Statistics
Correlation of price movement with the market:
0.506
Statistical significance of correlation:
HSKA has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.468
Stock price is 8.20% more 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):
-0.025
Covariance of price movement with the market:
-0.05
Kurtosis
6.169
Returns have a significant 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:
-0.366
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
HSKA
Gross Profit Margin Ratio:
170%
Operating Profit Margin Ratio:
-5.22%
Operating profit margin is -69.44% lower than the industry
Net Profit Margin Ratio:
170%
Effective Tax Rate:
26.78%
Effective tax rate is -51.25% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
-3.03%
Return on equity (ROE) is -69.05% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
-2.16%
Return on assets (ROA) is -35.88% lower than the industry
Financial Leverage:
1.2x
Current Ratio:
6.73
Current ratio is 4.09% above industry average
Cash Conversion Cycle (days):
32.4
Cash conversion cycle is -41.98% below industry average
The remaining useful life of property plant & equipment is: 15.2 years
Stock based compensation to net income ratio:
-39.29%
In-depth Efficiency Analysis
Revenue generated per employee:
393.9K
Each employee generates 5% more revenue than industry average revenue per employee
EBITDA generated per employee:
- 2.3K
Each employee generates -137% less EBITDA than industry average revenue per employee
Profit generated per employee:
- 19.9K
Each employee generates -33% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 27.5K
Each employee generates 93% more free cash flow than industry average revenue per employee
Assets/Capital per employee
502.2K
Each employee generates 93% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- -20.41%
Growth rate in R&D investment/expenditure is 15461.91% higher than the industry
Competitors/Peer firms of
HSKA
SORRENTO THERAPEUTICS, INC. (XNAS:SRNE)
NGM BIOPHARMACEUTICALS, INC. (XNAS:NGM)
MODIVCARE INC. (XNAS:MODV)
QUANTERIX CORPORATION (XNAS:QTRX)
REVANCE THERAPEUTICS, INC. (XNAS:RVNC)
AXSOME THERAPEUTICS, INC. (XNAS:AXSM)
IGM BIOSCIENCES, INC. (XNAS:IGMS)
MADRIGAL PHARMACEUTICALS, INC. (XNAS:MDGL)
FULGENT GENETICS, INC. (XNAS:FLGT)
Current Analyst Ratings
Strong buy�4%
Buy�13%
Hold�17%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
258.04M
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:
148.57M
109.47M
18.25M
58.31M
104.68M
46.37M
-
122.93M
964.00K
2.42M
13.28M
- 1513.00K
- 13463.00K
- 13005.00K
- 15746.00K
- 4216.00K
- 13005.00K
Statement of Cash Flow
Date:
Period:
3.30M
Differed Income Tax :
- 2366.00K
Stock Based Compensation :
5.11M
Change in Working Capital :
- 14079.00K
Accounts Receivables:
2.06M
Other Working Capital:
-
Other Non-Cash Items:
356.00K
Net Cash Provided by Operating Activities:
- 17665.00K
Investments in PP&E:
-
Net Acquisitions:
- 29509.00K
Purchases of Investments:
-
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
172.74M
-
172.74M
33.09M
55.22M
11.70M
272.75M
41.97M
139.99M
71.84M
5.04M
21.50M
48.58M
328.92M
-
601.67M
12.38M
2.50M
4.06M
5.88M
19.77M
40.53M
106.25M
5.12M
132.55M
-
173.08M
108.00K
- 158630.00K
2.0M
585.12M
March 31, 2022 at 6:00:00 AM
271.50M
428.60M
601.67M
-
108.76M
- 63989.0K
-
- 334.00K
- 29843.00K
- 62.00K
1.76M
-
-
- 4961.00K
- 3262.00K
- 60.00K
- 50830.00K
172.74M
223.57M
- 17665.00K
- 334.00K
- 17999.00K
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
HSKA
2023
2024
2025
2026
2027
$94.95
$104.37
$114.73
$126.12
$138.64