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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Radnet, Inc. (XNAS:RDNT) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
RDNT
Name:
RADNET, INC. (XNAS:RDNT)
Sector:
- 35657.00K
Industry:
Diagnostics & Research
CEO:
Dr. Howard Berger
Total Employees:
6,756
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is 37.78% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF RADNET, INC.(RDNT) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND DIAGNOSTICS & RESEARCH INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
20.13
One Month Price Target:
$20.33
Six Month Price Target :
$21.31
Likely Price in One Year's Time:
Ticker:
$22.49
Likely Trading Range Today Under (Normal Volatility)
$20.01
Price Upper limit ($) :
$20.29
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$18.44
This week:
$16.36
This month :
$12.59
Other Primary facts
Market Cap:
1.12B
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
57.31M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
33.39%
-32.82%
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:
$27.95
$24.36
$12.31
$15.90
Medium risk (<10%) entry points
Buy Call
Sell Call
$23.19
Buy Put:
Sell Put:
$22.42
$17.07
$17.84
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
RDNT
Sharpe Ratio:
2.00%
Comparison:
RDNT, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is -20.68% lower than the industry
& is -12.37% lower than the market/S&P 500 average
Average Returns/Yield of
RDNT
Daily returns:
0.09%
Weekly returns:
0.46%
Monthly returns:
1.82%
Yearly returns:
27.92%
Comparison of returns:
Average annual returns/yield (last 3 years) is -21.58% below industry average
Classification:
RDNT, 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:
RDNT has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
4.12%
Weekly Volatility:
9.22%
Monthly Volatility:
18.44%
Yearly Volatility:
63.88%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.41%
Volatility in last five trading days has been -65.79% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-8.38%
Weekly VaR:
-18.73%
Monthly VaR:
-37.47%
How Much Can the price of
RDNT
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-32%
Worst case (decline):
>85%
This translates to price declining to:
$13.67
This translates to price declining to:
$3.02
Severe Crash Probability
Risk of crash in next 6/12 months: High (50-70%)
What is Value at Risk (VaR)?
Risk Fundamentals
RDNT is a 164.44% riskier investment compared to the market/S&P 500 & is 126.55% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 6.81% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
RDNT
Beta in relation to market/S&P 500--1.74
Expected beta in 1 year's time:
1.071
Expected beta in 3 year's time:
1.515
Unlevered (debt free) Beta:
0.249
Beta in relation to Nasdaq (XNAS):
1.111
Beta in relation to all global stocks::
1.083
Beta Comparison & Analysis
Beta of competitors/peers::
1.253
Beta is 38.97% higher than peers
Average Industry Beta:
1.181
Beta is 47.40% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
17.88%
Sustainable growth rate is -66.15% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.068
Alpha is -59.13% below industry average alpha yield
Alpha is 434% higher than market/& is unsustainably high
Analysis of Cost of Capital of
RDNT
Equity cost of capital:
0.151
Equity cost of capital is 34.12% above industry mean WACC
Unlevered (without debt) cost of capital:
2.16%
Before-tax cost of debt:
3.38%
After-tax cost of debt:
2.67%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.67%
WACC is -20.10% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$23.41
Revenue growth rate per share of (3Y):
2.74
Annual revenue growth rate is -80.12% below industry average
EPS:
$0.34
Expected Annual growth rate of EPS (3Y):
2.17%
Expected future EPS growth rate is -91.90% lower than the Diagnostics & Research industry
Free cash flow (FCF) per share:
$0.62
-
-
Debt per share
$23.23
EBITDA per share
$4.22
Valuation Analysis Today of
RDNT
P/E Ratio:
72.86
P/E Ratio of Competitors/Peers:
217.42
P/E ratio is -66.49% lower than main peers & is 95.99% higher than the industry
Stock price/value with industry average P/E ratio: $12.64
RDNT is 59.26% overvalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
0.86
Price to sales ratio is -90.95% below the industry mean
P/B (Price to book value ratio):
2.74
Price to free cash flow: 32.29
-
Net income growth rate (3Y):
25.98%
Net income growth rate is -111.37% 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:
445.50%
Net debt to equity ratio:
447.30%
Debt to assets ratio:
62.17%
Net debt to assets ratio:
62.42%
Debt-to-asset ratio is 27.94% above industry average
Ability to repay debt:
Interest coverage ratio:
5.09
Interest coverage ratio is -118.13% less than industry average
Looking forward:
Debt growth rate:
8.56%
Annual debt growth is -92% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.25%
Analysis of Key Statistics
Correlation of price movement with the market:
0.533
Statistical significance of correlation:
RDNT has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.488
Stock price is 9.39% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.488
Correlation of price movement with Nasdaq (^IXIC):
0.003
Covariance of price movement with the market:
0.007
Kurtosis
17.05
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
-0.229
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
RDNT
Gross Profit Margin Ratio:
55%
Operating Profit Margin Ratio:
4.71%
Operating profit margin is -104.19% lower than the industry
Net Profit Margin Ratio:
55%
Effective Tax Rate:
-34.48%
Effective tax rate is -279.66% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
12.67%
Return on equity (ROE) is -39.68% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
1.77%
Return on assets (ROA) is -100.66% lower than the industry
Financial Leverage:
2.6x
Current Ratio:
0.76
Current ratio is -84.76% below industry average
Cash Conversion Cycle (days):
37.5
Cash conversion cycle is -24.49% below industry average
The remaining useful life of property plant & equipment is: 3.7 years
Stock based compensation to net income ratio:
29.31%
In-depth Efficiency Analysis
Revenue generated per employee:
198.6K
Each employee generates -47% less revenue than industry average revenue per employee
EBITDA generated per employee:
35.8K
Each employee generates 19% more EBITDA than industry average revenue per employee
Profit generated per employee:
5.6K
Each employee generates -65% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 5.3K
Each employee generates 143% more free cash flow than industry average revenue per employee
Assets/Capital per employee
274.2K
Each employee generates 143% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
RDNT
ATARA BIOTHERAPEUTICS, INC. (XNAS:ATRA)
CRONOS GROUP INC. (XNAS:CRON)
ENANTA PHARMACEUTICALS, INC. (XNAS:ENTA)
ALECTOR, INC. (XNAS:ALEC)
Olink Holding AB (publ) (XNAS:OLK)
SORRENTO THERAPEUTICS, INC. (XNAS:SRNE)
SILK ROAD MEDICAL, INC. (XNAS:SILK)
Prometheus Biosciences, Inc. (XNAS:RXDX)
Establishment Labs Holdings, Inc. (XNAS:ESTA)
Current Analyst Ratings
Strong buy�8%
Buy�0%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
1.34B
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:
1.16B
185.49M
-
-
-
-
129.07M
129.07M
-
47.60M
174.06M
242.09M
63.18M
37.87M
50.59M
- 17440.00K
37.87M
Statement of Cash Flow
Date:
Period:
43.92M
Differed Income Tax :
-
Stock Based Compensation :
11.10M
Change in Working Capital :
- 41346.00K
Accounts Receivables:
- 23904.00K
Other Working Capital:
- 3132.00K
Other Non-Cash Items:
- 21138.00K
Net Cash Provided by Operating Activities:
901.00K
Investments in PP&E:
- 36558.00K
Net Acquisitions:
- 25123.00K
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
70.71M
-
70.71M
165.51M
-
52.48M
288.70M
1.08B
570.19M
99.34M
44.75M
12.80M
41.00M
1.85B
-
2.14B
276.31M
76.07M
-
6.93M
21.99M
381.30M
1.33B
7.40M
1.34B
-
1.72B
5.00K
- 90260.00K
- 20761.0K
-
March 31, 2022 at 6:00:00 AM
1.29B
298.85M
2.02B
-
1.41B
1.3B
-
117.00K
- 61564.00K
- 3313.00K
-
-
-
-
- 3313.00K
83.00K
- 63893.00K
70.71M
134.61M
901.00K
- 36558.00K
- 35657.00K
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
RDNT
2023
2024
2025
2026
2027
$22.60
$43.86
$48.99
$54.73
$61.13