Return On Capital Employed Overview: Onconova Therapeutics, Inc. (NASDAQ:ONTX)

On 02-05-2k21 (Friday) Shareholders tracking shares of Onconova Therapeutics, Inc. (ONTX) belongs to Healthcare sector and Biotechnology industry. ONTX flaunted 10.12% to reach at $0.94 during previous trading session. ONTX Inc. has a total market value of 200.75M at the time of writing – representing $180.88M outstanding shares. Turning to other widely-considered trading data, this company’s half yearly performance is observed at -15.68%. Onconova Therapeutics (NASDAQ:ONTX) reported Q3 sales of $66.00 thousand. Earnings fell to a loss of $6.27 million, resulting in a 14.51% decrease from last quarter. In Q2, Onconova Therapeutics brought in $56.00 thousand in sales but lost $7.34 million in earnings.

What Is ROCE?

Return on Capital Employed is a measure of yearly pre-tax profit relative to capital employed by a business. Changes in earnings and sales indicate shifts in a company’s ROCE. A higher ROCE is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROCE suggests the opposite. In Q3, Onconova Therapeutics posted an ROCE of -0.51%.

Keep in mind, while ROCE is a good measure of a company’s recent performance, it is not a highly reliable predictor of a company’s earnings or sales in the near future.

Return on Capital Employed is an important measurement of efficiency and a useful tool when comparing companies that operate in the same industry. A relatively high ROCE indicates a company may be generating profits that can be reinvested into more capital, leading to higher returns and growing EPS for shareholders.

In Onconova Therapeutics’s case, the ROCE ratio shows the amount of assets may not be helping the company achieve higher returns. Investors may take this into account before making any long-term financial decisions.

Q3 Earnings Recap

Onconova Therapeutics reported Q3 earnings per share at $-0.03/share, which did not meet analyst predictions of $-0.03/share.

Volume Evaluation

The USA listed company saw a recent price trade of $0.94 and 199,412,928 shares have traded hands in the session. There are 33.28M shares which are traded as an average over the last three months period.

Many investors forget that one of the defining characteristics of the stock market is that it’s a market. Buyers and sellers help determine the price of each stock, and the more buyers and sellers a particular stock has interested in it, the more liquid the market will be. Liquidity can have a profound impact on just how violently stock prices can move in either direction, and the reasons have to do with the nature of the market in a stock’s shares.

Trading volume, or volume, is the number of shares or contracts that indicates the overall activity of a security or market for a given period. Trading volume is an important technical indicator an investor uses to confirm a trend or trend reversal. Volume gives an investor an idea of the price action of a security and whether they should buy or sell the security.

Performance Levels

Looking performance record on shares of Onconova Therapeutics, Inc. (ONTX) we observed that the stock has seen a move 126.58% over the last 52-week trading period. The stock generated performance of 265.48% tracking last 3 months. Investors will be anxiously watching to see if things will turn around and the stock will start gaining or losing momentum over the next few months. If we look back year-to-date, the stock has performed 100.94%. Shares are at 34.68% over the previous week and 12.77% over the past month.

Analyst Views:

Fluctuating the focus to what the Wall Street analysts are projecting, we can see that the current consensus target price on shares is $0. Analysts often put in a lot of work to study stocks that they cover. Wall Street analysts have a consensus recommendation of 2.70on this stock. This number falls on a one to five scale where a 1 would be considered a strong buy and 5 means a strong sell, 2 shows Buy, 3 Hold, 4 reveals Sell recommendation.

Volatility Insights

Watching some historical volatility numbers on shares of Onconova Therapeutics, Inc. (ONTX) we can see that the 30 days volatility is presently 14.76%. The 7 days volatility is 17.28%. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

The company has a beta of 1.92. 1.00 indicates that its price is correlated with the market. Less than 1.00 shows less volatility than the market. Beta greater than 1.00 indicates that the security’s price is theoretically more volatile than the market.

The Average True Range (ATR) value reported at 0.12. The average true range (ATR) is a technical analysis indicator that measures volatility by decomposing the entire range of an asset price for that period. A stock experiencing a high level of volatility has a higher ATR, and a low volatility stock has a lower ATR. The ATR may be used by market technicians to enter and exit trades, and it is a useful tool to add to a trading system. It was created to allow traders to more accurately measure the daily volatility of an asset by using simple calculations. The indicator does not indicate the price direction; rather it is used primarily to measure volatility caused by gaps and limit up or down moves. The ATR is fairly simple to calculate and only needs historical price data.

Technical Considerations

Onconova Therapeutics, Inc. (ONTX) stock positioned 88.75% distance from the 200-day MA and stock price situated 84.00% away from the 50-day MA while located 32.24% off of the 20-day MA.

RSI value sited with reading of 54.55. Relative Strength Index (RSI) is an extremely useful and popular momentum oscillator. The RSI compares the magnitude of a stock’s recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100. It takes a single parameter, the number of time periods to use in the calculation. In his book, Wilder recommends using 14 periods.

Observing the Technical Indicators:

Onconova Therapeutics, Inc. institutional ownership is held at 10.20% while insider ownership was 0.30%. As of now, ONTX has a P/S, P/E and P/B values of 1003.77, 0 and 13.37 respectively. Its P/Cash is valued at 8.30. The Company’s net profit margin for the 12 months at 0. Comparatively, the gazes have a Gross margin 0.

Profitability ratios:

Looking into the profitability ratios of ONTX stock, an investor will find its ROE, ROA, ROI standing at -161.10%, -89.70% and -187.10%, respectively.

Earnings per Share Details of Onconova Therapeutics, Inc.:

The EPS of ONTX is strolling at -0.26, measuring its EPS growth this year at 70.00%. As a result, the company has an EPS growth of 0 for the approaching year.

Given the importance of identifying companies that will ensure earnings per share at a tall rate, we later obsession to umpire how to identify which companies will achieve high amassing rates. One obvious showing off to identify high earnings per portion count together companies are to locate companies that have demonstrated such build up beyond the p.s. 5 to 10 years.

The payout ratio shows the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage of the company’s earnings. The payout ratio can also be expressed as dividends paid out as a proportion of cash flow. The payout ratio is also known as the dividend payout ratio. The Company’s payout ratio was 0 and Price to free cash flow remained $0.

Brad Larson

About Brad Larson

This is Brad Larson and I like to introduce myself as an adviser, in the “Earnings Review”. I worked independently as a self motivator and with the financial institute as financial adviser to invest in the Earnings sector for over 9 years in the developing countries by introducing new phases and ways to improve in the Earnings sector.I specialize in market indices, currency pairs, and commodities, rarely trading individual stocks. I accomplished my Post-Graduate degree in Business Administration with a specialization in Finance from International School of Business and Media (ISB&M). I like to travel all over the globe to get new experience and provide by best services to the companies. As an adviser I like to work with new people to share and explore new ideas keeping in view minimizing the operating cost and giving the best final product through new technology and minimizing the time of development.

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