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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Iradimed Corporation (XNAS:IRMD) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
IRMD
Name:
IRADIMED CORPORATION (XNAS:IRMD)
Sector:
1.00M
Industry:
Medical Devices
CEO:
Ms. Leslie McDonnell
Total Employees:
110
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -151.96% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF IRADIMED CORPORATION(IRMD) 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 ($) :
32.37
One Month Price Target:
$32.56
Six Month Price Target :
$33.53
Likely Price in One Year's Time:
Ticker:
$34.69
Likely Trading Range Today Under (Normal Volatility)
$32.22
Price Upper limit ($) :
$32.59
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$30.18
This week:
$27.47
This month :
$22.57
Other Primary facts
Market Cap:
407.86M
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
12.57M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
23.66%
-20.08%
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:
$42.53
$37.84
$22.21
$26.90
Medium risk (<10%) entry points
Buy Call
Sell Call
$36.31
Buy Put:
Sell Put:
$35.31
$28.41
$29.43
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
IRMD
Sharpe Ratio:
2.72%
Comparison:
IRMD, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is 79.65% higher than the industry
& ratio is 19.38% higher than the market/S&P 500 average
Average Returns/Yield of
IRMD
Daily returns:
0.10%
Weekly returns:
0.50%
Monthly returns:
2.00%
Yearly returns:
15.36%
Comparison of returns:
Average annual returns/yield (last 3 years) is 56.03% above industry average
Classification:
IRMD, is amongst the top 40% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.62
Statistical test of Returns:
IRMD has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
3.34%
Weekly Volatility:
7.48%
Monthly Volatility:
14.96%
Yearly Volatility:
51.81%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
2.26%
Volatility in last five trading days has been -32.29% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-6.77%
Weekly VaR:
-15.13%
Monthly VaR:
-30.27%
How Much Can the price of
IRMD
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-26%
Worst case (decline):
>85%
This translates to price declining to:
$24.08
This translates to price declining to:
$4.86
Severe Crash Probability
Risk of crash in next 6/12 months: Very high (>70%)
What is Value at Risk (VaR)?
Risk Fundamentals
IRMD is a 113.63% riskier investment compared to the market/S&P 500 & is 83.02% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 6.52% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
IRMD
Beta in relation to market/S&P 500--1.07
Expected beta in 1 year's time:
0.555
Expected beta in 3 year's time:
0.785
Unlevered (debt free) Beta:
1.032
Beta in relation to Nasdaq (XNAS):
0.337
Beta in relation to all global stocks::
0.693
Beta Comparison & Analysis
Beta of competitors/peers::
1.23
Beta is -13.38% lower than peers
Average Industry Beta:
1.065
Beta is 0.03% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
-
Alpha provided | Alpha Analysis
Alpha provided:
0.135
Alpha is 175.08% above industry average alpha yield
Alpha is 860% higher than market/& is unsustainably high
Analysis of Cost of Capital of
IRMD
Equity cost of capital:
0.104
Equity cost of capital is 0.02% above industry mean WACC
Unlevered (without debt) cost of capital:
10.12%
Before-tax cost of debt:
-
After-tax cost of debt:
-
Overall debt rating:
-
Weighted average cost of capital (WACC):
-
-
Key Per-Share Metrics & Analysis
Revenue per share:
$3.57
Revenue growth rate per share of (3Y):
6.5
Annual revenue growth rate is -94.72% below industry average
EPS:
$0.83
Expected Annual growth rate of EPS (3Y):
-4.51%
Expected future EPS growth rate is -138.98% lower than the Medical Devices industry
Free cash flow (FCF) per share:
$0.87
-
-
Debt per share
$0.17
EBITDA per share
$1.01
Valuation Analysis Today of
IRMD
P/E Ratio:
33.54
P/E Ratio of Competitors/Peers:
50.31
P/E ratio is -33.33% lower than main peers & is -86.23% lower than the industry
Stock price/value with industry average P/E ratio: $202.14
IRMD is -83.99% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
9.06
Price to sales ratio is -2.69% below the industry mean
P/B (Price to book value ratio):
6.5
Price to free cash flow: 37.32
Price to free cash flow ratio is -19.05% lower than the industry
Net income growth rate (3Y):
28.92%
Net income growth rate is -70.22% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 120.47%
Dividend yeild: 3.09%
Previous Dividend: $1.00
Previous adjusted dividend: $1.00
Previous Dividend: $1.00
-
-
Average dividend payment (long-term): $1.00
-
Expected next dividend payment date: 25/05/2022
Expected next dividend record date: 18/05/2022
Expected next dividend declaration date: 05/09/2022
Previous dividend payment date: 24/02/2022
Previous dividend record date: 17/02/2022
Previous dividend declaration date: 02/07/2022
Dividend History:
2022-02-16--$1.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
3.41%
Net debt to equity ratio:
-76.79%
Debt to assets ratio:
2.95%
Net debt to assets ratio:
-66.35%
Debt-to-asset ratio is -92.39% below industry average
Ability to repay debt:
Interest coverage ratio:
-
-
Looking forward:
Debt growth rate:
-8.58%
Annual debt growth is -104% 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:
0.219
Statistical significance of correlation:
IRMD has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.468
Stock price is -53.24% 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):
0.011
Covariance of price movement with the market:
0.021
Kurtosis
8.292
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:
0.354
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
IRMD
Gross Profit Margin Ratio:
306%
Operating Profit Margin Ratio:
24.76%
Operating profit margin is -244.99% lower than the industry
Net Profit Margin Ratio:
306%
Effective Tax Rate:
6.29%
Effective tax rate is -88.55% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
16.67%
Return on equity (ROE) is -270.00% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
14.40%
Return on assets (ROA) is -527.17% lower than the industry
Financial Leverage:
1.0x
Current Ratio:
10.48
Current ratio is 62.17% above industry average
Cash Conversion Cycle (days):
55.2
Cash conversion cycle is -1.05% below industry average
The remaining useful life of property plant & equipment is: 2.9 years
Stock based compensation to net income ratio:
4.35%
In-depth Efficiency Analysis
Revenue generated per employee:
408.2K
Each employee generates 8% more revenue than industry average revenue per employee
EBITDA generated per employee:
114.9K
Each employee generates 1736% more EBITDA than industry average revenue per employee
Profit generated per employee:
94.8K
Each employee generates -419% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
9.1K
Each employee generates -164% less free cash flow than industry average revenue per employee
Assets/Capital per employee
62.5K
Each employee generates -164% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 0.13%
Growth rate in R&D investment/expenditure is -200.73% lower than the industry
Competitors/Peer firms of
IRMD
XOMA CORPORATION (XNAS:XOMA)
NEURONETICS, INC. (XNAS:STIM)
CARDIFF ONCOLOGY, INC. (XNAS:CRDF)
AVROBIO, INC. (XNAS:AVRO)
FREQUENCY THERAPEUTICS, INC. (XNAS:FREQ)
AEGLEA BIOTHERAPEUTICS, INC. (XNAS:AGLE)
VERONA PHARMA PLC. (XNAS:VRNA)
ATRECA, INC. (XNAS:BCEL)
Reneo Pharmaceuticals Inc (XNAS:RPHM)
Current Analyst Ratings
Strong buy�0%
Buy�4%
Hold�4%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
44.90M
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:
10.53M
34.37M
1.95M
10.06M
21.30M
11.25M
-
23.25M
-
-
1.51M
12.63M
11.12M
10.43M
11.12M
699.62K
10.43M
Statement of Cash Flow
Date:
Period:
433.93K
Differed Income Tax :
- 52.04K
Stock Based Compensation :
453.36K
Change in Working Capital :
- 1907.35K
Accounts Receivables:
- 1380.68K
Other Working Capital:
- 119.87K
Other Non-Cash Items:
11.58K
Net Cash Provided by Operating Activities:
1.43M
Investments in PP&E:
- 183.35K
Net Acquisitions:
-
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
50.45M
500.09K
50.95M
6.51M
4.35M
3.71M
65.51M
4.56M
-
1.33M
-
808.02K
172.27K
6.88M
-
72.39M
1.14M
280.70K
122.46K
2.59M
2.25M
6.25M
2.13M
-
3.60M
-
9.85M
1.26K
36.92M
6.1K
-
March 31, 2022 at 6:00:00 AM
33.79M
62.55M
72.39M
-
2.41M
- 48032.0K
-
- 241.34K
- 424.69K
-
-
-
- 12559.13K
4.57K
- 12554.56K
-
- 11553.07K
50.45M
62.00M
1.43M
- 424.69K
1.00M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
IRMD
2023
2024
2025
2026
2027
$38.29
$41.03
$43.97
$47.12
$50.49