Fact based stock research
Cara Therapeutics (NasdaqGM:CARA)
US1407551092
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Cara Therapeutics stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 85 (better than 85% compared with investment alternatives), Cara Therapeutics (Pharmaceuticals, USA) shares have much better financial characteristics than comparable stocks. Shares of Cara Therapeutics are a good value (attractively priced) with a consolidated Value Rank of 65 (better than 65% of alternatives), are safely financed (Safety Rank of 100, which means low debt burdens), but show below-average growth (Growth Rank of 13). ...read more
RECOMMENDATION: A Combined Rank of 85, is a strong buy recommendation based on Cara Therapeutics's financial characteristics. As the company Cara Therapeutics's key financial metrics exhibit good value (Obermatt Value Rank of 65) but low growth (Obermatt Growth Rank of 13) while being safely financed (Obermatt Safety Rank of 100), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 65% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
Latest Obermatt Ranks
Log in or sign up to see the new 360° View and Sentiment ranks.
360° Viewnew| Country | USA |
| Industry | Pharmaceuticals |
| Index | NASDAQ |
| Size class | X-Small |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.
Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Cara Therapeutics
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 74 |
|
33 |
|
63 |
|
65 |
|
| GROWTH | ||||||||
| GROWTH | 81 |
|
31 |
|
1 |
|
13 |
|
| SAFETY | ||||||||
| SAFETY | 72 |
|
83 |
|
83 |
|
100 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
77 |
|
37 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
55 |
|
21 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 85 (better than 85% compared with investment alternatives), Cara Therapeutics (Pharmaceuticals, USA) shares have much better financial characteristics than comparable stocks. Shares of Cara Therapeutics are a good value (attractively priced) with a consolidated Value Rank of 65 (better than 65% of alternatives), are safely financed (Safety Rank of 100, which means low debt burdens), but show below-average growth (Growth Rank of 13). ...read more
RECOMMENDATION: A Combined Rank of 85, is a strong buy recommendation based on Cara Therapeutics's financial characteristics. As the company Cara Therapeutics's key financial metrics exhibit good value (Obermatt Value Rank of 65) but low growth (Obermatt Growth Rank of 13) while being safely financed (Obermatt Safety Rank of 100), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 65% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 74 |
|
33 |
|
63 |
|
65 |
|
| GROWTH | ||||||||
| GROWTH | 81 |
|
31 |
|
1 |
|
13 |
|
| SAFETY | ||||||||
| SAFETY | 72 |
|
83 |
|
83 |
|
100 |
|
| COMBINED | ||||||||
| COMBINED | 81 |
|
18 |
|
18 |
|
85 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 65 (better than 65% compared with alternatives), Cara Therapeutics shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Cara Therapeutics. Price-to-Profit (also referred to as price-earnings, P/E) is 72 which means that the stock price compared with what market professionals expect for future profits is lower than for 72% of comparable companies, indicating a good value concerning Cara Therapeutics's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 86, which means that the stock price is lower as regards to invested capital than for 86% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 51% of alternatives (only 49% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 99% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 65, is a buy recommendation based on Cara Therapeutics's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 74 |
|
33 |
|
34 |
|
49 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 90 |
|
30 |
|
72 |
|
72 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 57 |
|
50 |
|
89 |
|
86 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 74 |
|
33 |
|
63 |
|
65 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 13 (better than 13% compared with alternatives), Cara Therapeutics shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for Cara Therapeutics. While Profit Growth has a good rank of 74, as professionals currently expect the company to grow its profits more than 74% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 10, which means that currently professionals expect the company to grow less than 90% of its competitors, while Capital Growth has a rank of 17 and Stock Returns have been below market median, with a rank of 9 (91% of alternative investments were better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 13, is a sell recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 97 |
|
95 |
|
4 |
|
10 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 5 |
|
1 |
|
23 |
|
74 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
31 |
|
3 |
|
17 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 62 |
|
37 |
|
3 |
|
9 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 81 |
|
31 |
|
1 |
|
13 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 100 (better than 100% compared with alternatives) for 2024, the company Cara Therapeutics has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Cara Therapeutics is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for Cara Therapeutics.Leverage is at 100, meaning the company has a below-average debt-to-equity ratio. It has less debt than 100% of its competitors.Refinancing is at a rank of 100, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 100% of its competitors. Liquidity is at 1, meaning that the company generates less profit to service its debt than 99% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 100 (better than 100% compared with alternatives), Cara Therapeutics has a financing structure that is significantly safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for Cara Therapeutics more challenging. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 70 |
|
100 |
|
100 |
|
100 |
|
| REFINANCING | ||||||||
| REFINANCING | 70 |
|
47 |
|
99 |
|
100 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 40 |
|
29 |
|
29 |
|
1 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 72 |
|
83 |
|
83 |
|
100 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
3 |
|
64 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
72 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
99 |
|
12 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
48 |
|
57 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
77 |
|
37 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Cara Therapeutics from November 14, 2024.
Obermatt Portfolio Performance
We’re so convinced about our free research, that we buy our stock tips.
See the performance of the Obermatt portfolio.