ACHV is now overvalued and could go down -50%

Based on our analysis, Achieve Life Sciences currently holds an overvalued rating of 1 out of 5 stars from Cashu, primarily due to its concerning financial ratios compared to industry standards. One of the critical metrics is the net profit margin, which stands at -397.83%. This indicates that for every dollar of revenue, the company incurs significant losses. In comparison, the sector average is -138.62%, suggesting that Achieve Life Sciences is experiencing far worse profitability challenges than its peers. Additionally, the return on equity (ROE) ratio for Achieve Life Sciences is -510.24%. This ratio measures how effectively a company uses shareholders' equity to generate profits. A negative ROE indicates that the company is not only failing to provide returns but is doing so at a rate significantly worse than the sector average of -74.52%. Moreover, the return on assets (ROA) ratio is also troubling, showing -153.92%. This ratio reflects how efficiently a company is utilizing its assets to generate earnings. Again, Achieve Life Sciences lags behind the sector average of -47.93%, pointing to a severe inefficiency in asset utilization. In summary, the financial ratios indicate that Achieve Life Sciences is underperforming relative to its industry, contributing to its low valuation rating. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.