CDMO is now overvalued and could go down -33%

Based on our analysis, Avid Bioservices currently holds an overvalued rating of 1 out of 5 stars according to Cashu. This rating reflects several concerning financial metrics that indicate potential challenges for the company. One significant ratio is the Return on Equity (ROE), which sits at -231.16, far below the sector average of -76.41. ROE measures a company's ability to generate profit from shareholders' equity, and a deeply negative value suggests that Avid is struggling to provide returns to its investors. Additionally, the company's Return on Assets (ROA) is reported at -41.82, compared to the sector average of -47.59. ROA indicates how efficiently a company uses its assets to generate earnings. Although Avid’s ROA is better than the sector average, the negative value still points to inefficiencies in asset utilization. Furthermore, Avid's Net Profit Margin is at -100.60, while the sector average is -137.57. This metric reveals the percentage of revenue that remains as profit after all expenses are deducted. Avid's less negative margin indicates that it is losing less money per dollar of revenue than its peers, but it still raises concerns about its profitability trajectory. In summary, Avid Bioservices does not demonstrate favorable financial performance compared to its industry peers, leading to its undervaluation 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.