Is Adicet Bio about to shock private investors?
 | By Raphi Shpitalnik | Macroaxis Story |
Adicet Bio (ACET) is a healthcare company specializing in biotechnology, based in the domestic market. As of the 7th of July, 2023, the company has a market capitalization of 134.9M and employs 132 full-time staff. Despite a gross profit of 25M, the company has reported a significant loss in its earnings, with an EBITDA of -107.1M and a net income of -69.8M. This has led to a diluted EPS of -2.63, and an estimated EPS for the next year of -1.99. However, Adicet Bio has a strong buy consensus from analysts, with 4 strong buys and 3 holds out of 8 estimates. The estimated target price is 20.125, with a highest estimated target price of 38 and a lowest of 6. The Wall Street target price stands at 24, suggesting a possible upside price of 12.12. Despite the losses, the company's valuation real value is 7.41, and its valuation market value is 3.22. In terms of ratios, the company has a PEG ratio of 0.82 and an enterprise value.EBITDA of -8.91. The return on assets is -0.21, and the return on equity is -0.36. Despite the current losses, the company's strong buy consensus and potential upside price suggest that it could be a good long-term investment for those interested in the healthcare sector. More information can be found on their website at https://www.adicetbio.com. Adicet Bio's Asset Turnover is relatively stable at present, compared to the previous year. In 2022, Adicet Bio reported an Asset Turnover of 0.07. The Book Value per Share is expected to increase to 7.68 in 2023, while Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) are projected to decrease to (66.4 M) in 2023.
Given the current interest in the healthcare providers and services sector, it's worthwhile to review Adicet Bio. We will examine why investors might still consider investing in this company. In this article, I will also discuss various factors influencing Adicet Bio's products and services and explain how these could impact private investors in Adicet Bio.
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Reviewed by Gabriel Shpitalnik
The average rating for the company from seven analysts is 'Buy'. We offer trading advice that aligns with the prevailing expert consensus on Adicet Bio. Our advanced recommendation engine utilizes a multidimensional algorithm to assess the company's growth potential, considering all available technical and fundamental data at the time.
Detailed assessment
The performance of Adicet Bio in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Adicet Bio's stock prices. When investing in Adicet Bio, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Adicet Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Adicet Bio carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
Watch out for price decline
Please consider monitoring Adicet Bio on a daily basis if you are holding a position in it. Adicet Bio is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Adicet Bio stock to be traded above the $1 level to remain listed. If Adicet Bio stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Adicet Bio's Liquidity
Adicet Bio financial leverage refers to using borrowed capital as a funding source to finance Adicet Bio ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Adicet Bio financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Adicet Bio's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Adicet Bio's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Adicet Bio's total debt and its cash.
What do experts say about Adicet?
Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis ConsensusWhat is driving Adicet Bio Investor Appetite?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Adicet Bio has an asset utilization ratio of 7.56 percent. This implies that the company is making $0.0756 for each dollar of assets. An increasing asset utilization means that Adicet Bio is more efficient with each dollar of assets it utilizes for everyday operations. Adicet Bio, Inc. (NASDAQ: ACET) is a prominent player in the biotechnology industry, focusing on health care equipment and services. As of July 7, 2023, the company boasts a robust current ratio of 16.10X and a net asset worth of 330.69 million dollars, reflecting its strong financial position. The company's total debt stands at a manageable 21.02 million dollars, with a low debt to equity ratio of 0.08%.However, Adicet Bio has been grappling with financial losses, reporting an EBITDA of -107.1 million dollars and an operating income of -72.6 million dollars. The company's diluted EPS stands at -2.63, and it has a negative return on assets of -0.21. Despite these challenges, Adicet Bio has maintained a healthy cash position, with cash and equivalents amounting to 260.64 million dollars and cash per share at 6.11X. The company's shares are currently undervalued, with a Wall Street target price of 24 dollars, offering a potential upside of 12.11. Despite the high standard deviation of 8.91, indicating volatility, the company's Z score of 3.1 suggests financial stability. However, investors should note the company's high probability of bankruptcy at 27.38%. With a workforce of 132 full-time employees, Adicet Bio continues to make strides in the biotechnology sector. .nullIn conclusion, Adicet Bio has shown a promising performance today despite a modest market drop. With a Valuation Real Value of 7.41 and a Valuation Market Value of 3.22, the stock is currently undervalued. The Analyst Overall Consensus recommends a 'Buy' with 4 out of 8 analysts giving a 'Strong Buy' rating.The stock has a possible upside price of 12.12, significantly higher than the possible downside price of 0.0322. With an Analyst Target Price Estimated Value of 20.125, which is almost three times its current market value, and the highest estimated target price being a whopping 38, Adicet Bio presents a potentially lucrative investment opportunity. However, investors should be aware of the fiscal year end in June and monitor any changes in the company's financial performance. .
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