Over the next 6 years, Anixa Biosciences shares will need to reach $5 to achieve average annual stock market performance of 9.0%. Anixa Biosciences’ stock price will need to reach $6 by 2029 to achieve upper quartile performance. What is the market’s view of Anixa Biosciences’ future operating performance as reflected in the current price of $3?
Executive Summary
- Key Anixa Biosciences characteristics: high expected growth, high financial strength, average profitability, and instability.
- Very high valuation, above market shareholder returns. Current valuation levels are very high relative to the Anixa Biosciences Peer Group. Recent market returns have outperformed the Anixa Biosciences Peer Group. Total shareholder returns expected to significantly lag the overall equity market. Based on current investor expectations, Anixa Biosciences shares should reach a level of $0 by 2029 — an -41.2% per year total shareholder return. A 2029 stock price of $5 would reflect median performance and a price of $6 would be required to reach upper quartile performance.
- Anixa Biosciences’ past growth is average. Historical growth has been average relative to the Anixa Biosciences Peer Group and forecasted growth is relatively very high. Equity Growth has been superior. EPS Growth has lagged. Anixa Biosciences’ historical income statement and balance sheet growth are not available.
- Pretax Margin, Pretax ROA, and Asset Turnover are group lagging. These factors have negatively affected market perceptions of Anixa Biosciences. The company has an uncertain cash situation, so it will have to work hard to find and fund opportunities.
- Anixa Biosciences’ risk profile is favorable. Overall variability has been very high with very high revenue variability, and only average stock price volatility. Financial Strength is relatively very high and earnings’ expectations are below average. The debt/capital ratio has declined.
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