Learn more about whether Unity Biotechnology Inc is a good stock to buy or sell based on recent news as well as its key financial metrics. Read on to find out how (UBX) grades on certain investment factors and determine whether it meets your investment needs.
Latest Unity Biotechnology Inc Stock News
As of November 29, 2022, Unity Biotechnology Inc had a $36.3 million market capitalization, putting it in the 21st percentile of companies in the Biotechnology & Medical Research industry.
Unity Biotechnology Inc does not have a meaningful P/E due to negative earnings over the last 12 trailing months. Unity Biotechnology Inc’s trailing 12-month revenue is $5.0 million with a % profit margin. Year-over-year quarterly sales growth most recently was %. Analysts expect adjusted earnings to reach $-3.457 per share for the current fiscal year. Unity Biotechnology Inc does not currently pay a dividend.
The Biotechnology and Medical Research sub-industry has a positive outlook, a historically defensive sub-industry. Drug sales are anticipated to have high growth, primarily driven by COVID-19 therapeutics, the continued adoption of many new and innovative therapies, a favorable M&A environment, and a low prevalence of patent expirations in 2022. Additionally, companies could see prescription growth pick up as in-person physician visits return to pre-pandemic levels. As COVID-19 variants have emerged, vaccine boosters have been offered in order to increase efficacy. Due to this, repeat vaccinations will likely be necessary for lifelong immunity which would provide a long-lasting and significant source of revenue for lead vaccine developers. Aside from vaccines, the biotech industry is dependent on the volume of new therapy approvals. The FDA’s heavy focus on COVID-19 could slow the approvals on non-COVID-19 therapies. Despite this, the biotech industry will likely see promising sales growth over the next five years as it usually takes at least five years for new drugs to reach peak sales levels. Approval activity has also been on the rise recently. Mergers and acquisitions activity is expected to remain low as a more activist Federal Trade Commission (led by Lina Khan) could be more skeptical of proposed mergers. Year to date through June 30, the S&P 1500 Biotech Index was down 1.6%, vs. a 20.5% decline for the S&P 1500 Composite Index. In 2021, the Biotech Index rose 8.2%, vs. a 26.7% gain for the Composite Index.
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Grading Unity Biotechnology Inc Stock
Before you choose to buy, sell or hold Unity Biotechnology Inc stock, you’ll want to analyze how it has been graded. Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, making sense of financial ratios, reading income statements and analyzing recent stock movement. To help individual investors decide whether or not to buy (UBX) stock, AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way that is suitable for investors of all knowledge levels.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for each of five key investing factors: value, growth, momentum, earnings revisions and quality. Here, we’ll take a closer look at Unity Biotechnology Inc’s stock grades for value, growth and quality. Learn more about A+ Investor here!
Unity Biotechnology Inc Stock Value Grade
|Price/Free Cash Flow||na||23.3|
Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. To decide if Unity Biotechnology Inc stock is a buy or sell, you’ll want to evaluate its fair market price or intrinsic value.
Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.
AAII’s A+ Investor Value Grade is derived from a stock’s value score. The value score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
Stocks with a Value Score from 81-100 are considered deep value, those with a score between 61-80 are value and so on.
Unity Biotechnology Inc has a Value Score of 100, which is Deep Value.
Unity Biotechnology Inc Stock Growth Grade
|Metric||Metric Score||UBX||Sector Median|
|Sales Growth 5yr Ann'l||0||0.0%||12.0%|
|Sales Increases YoY Last 5 yrs||0||0 of 5||0 of 5|
|Cash from Operations Ann'l Positive Last 5 yrs||0||0 of 5||0 of 5|
The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.
In order to compute the Growth Score and assign it a letter grade, the percentile ranks for each of the three individual components—consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations—must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.
The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered Very Weak, while those in the top 20% receive A grades, which are considered Very Strong.
Unity Biotechnology Inc has a Growth Score of 0, which is Very Weak.
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Unity Biotechnology Inc Stock Momentum Grade
|Relative Price Strength (Q1)||12||(44.4%)||(17.7%)|
|Relative Price Strength (Q2)||8||(35.5%)||3.9%|
|Relative Price Strength (Q3)||63||(0.3%)||(22.0%)|
|Relative Price Strength (Q4)||4||(58.2%)||(23.1%)|
|Relative Price Strength (weighted 4 qtr)||7||(36.5%)||(11.9%)|
Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.
Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.
Unity Biotechnology Inc has a Momentum Score of 7, which is Very Weak.
Other Unity Biotechnology Inc Stock Grades
In addition to Value, Momentum and Growth, A+ Investor also provides grades for Estimate Revisions and Quality.
The Earnings Estimate Revisions Grade takes into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises—or at least continued sales growth (the exact opposite is generally true, too). AAII’s stock screen that follows the companies with the highest earnings estimate revisions (i.e., the best grades) has a 23.3% backtested annual return since inception, whereas an example screen following those with the worst revisions has a backtested annual return since inception of under 5%.
AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the Quality Grade is the percentile rank of the composite return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.
These 2 key factors, when combined with the above, provide a holistic view into a stock. Further, by joining A+ Investor you can see whether Unity Biotechnology Inc’s stock passes any of our 60+ stock screens that have outperformed the market since their creation.
Should I Buy Unity Biotechnology Inc Stock?
Overall, Unity Biotechnology Inc stock has a Value Grade of A, Growth Grade of F, Momentum Grade of F .
Whether or not you should buy Unity Biotechnology Inc stock will ultimately depend on your individual goals, risk tolerance and allocation. AAII can help you figure these out and identify which investments align with what works best for you.
Lastly, it’s important to evaluate a stock by comparing it against others in the same industry. Review the table below to see how Unity Biotechnology Inc stock stands up against its competitors. Click into any of the below tickers to see their stock grades for value, momentum, quality and EPS revisions.
Unity Biotechnology Inc (UBX) Competitors
Companies similar to Unity Biotechnology Inc in the Biotechnology & Medical Research industry.
|Company name||Ticker||Market Cap|
|Acurx Pharmaceuticals Inc||ACXP||$36.98Mil|
|Cyclerion Therapeutics Inc||CYCN||$41.32Mil|
|Eledon Pharmaceuticals Inc||ELDN||$33.57Mil|
|Gain Therapeutics Inc||GANX||$36.13Mil|
|Helix Biopharma Corp.||HBP||$292.40Mil|
Unity Biotechnology Inc Stock: Bottom Line
You can use the information about how Unity Biotechnology Inc stock is graded to determine if you should invest in this specific company. However, you should decide whether Unity Biotechnology Inc stock is a buy, sell or hold based on a combination of grades, metrics, ratios and U.S. Securities and Exchange Commission (SEC) reports.
We encourage investors to do their own due diligence and research through programs of education that teach you to invest for yourself. In this way, you can effectively become a manager of your own wealth—without having to rely on others for your financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.
So, if you’re still on the fence about whether Unity Biotechnology Inc stock is a buy, sell or hold, you can utilize our expansive and robust screening tools like A+ Investor to help make your decision.
A+ Investor adds to its qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions, find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs and understand your portfolio at a more detailed level.