What is NovelStem International Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, NovelStem International's Probability of Financial Distress (%) is 0.51%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of NovelStem International's Probability of Financial Distress (%)
For the Diagnostics & Research subindustry, NovelStem International's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
NovelStem International's Probability of Financial Distress (%) Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, NovelStem International's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where NovelStem International's Probability of Financial Distress (%) falls into.
NovelStem International Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -5.27 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.51% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
NovelStem International (NovelStem International) Business Description
Traded in Other Exchanges
N/A
Address
2255 Glades Road, Suite 221A, Boca Raton, FL, USA, 33431
NovelStem International Corp owns novel stem-cell-based diagnostic technology for predicting patients' resistance to cancer therapies. The technology is also being used for genetic research related to other medical therapies.
Executives
| Baker Street Capital Management, Llc |
10 percent owner |
1875 CENTURY PARK EAST, SUITE 700, LOS ANGELES CA 90067 |
| Vadim Perelman |
10 percent owner |
1875 CENTURY PARK EAST, SUITE 700, LOS ANGELES CA 90067 |
| Baker Street Capital L.p. |
10 percent owner |
1875 CENTURY PARK EAST, SUITE 700, LOS ANGELES CA 90067 |
| Stephen Gans |
director, 10 percent owner |
14850 NW 44TH COURT, OPA LOCKA FL 33054 |
| Shannon River Partners Lp |
10 percent owner |
850 THIRD AVENUE, 13TH FLOOR, NEW YORK NY 10022 |
| Shannon River Fund Management Co Llc |
10 percent owner |
850 THIRD AVENUE, 13TH FLOOR, NEW YORK NY 10022 |
| Shannon River Partners Ii, Lp |
10 percent owner |
850 THIRD AVENUE, 13TH FLOOR, NEW YORK NY 10022 |
| Doonbeg Fund Lp |
10 percent owner |
850 THIRD AVE, 13TH FLOOR, New York ny 10022 |
| Spencer M. Waxman |
director |
C/O SHANNON RIVER PARTNERS, 800 THIRD AVENUE 30TH FLOOR, NEW YORK NY 10022 |
| Stanley Morgan |
10 percent owner |
1585 BROADWAY, NEW YORK NY 10036 |
| Robert D. Epstein |
director |
2255 GLADES ROAD, BOCA RATON FL 33431 |
| Coghill Capital Management Llc |
10 percent owner |
233 SOUTH WACKER DRIVE, SUITE 8439, CHICAGO IL 60606 |
| Ccm Master Fund Ltd |
10 percent owner |
C/O MORGAN STANLEY FUND SERVICES (CAYMAN, LTD CENTURY YARD CRICKET SQ HUTCHINGS DR, PO BOX 2681 GEORGE TOWN E9 00000 |
| Clint D Coghill |
10 percent owner |
|
| Scott Gomez |
officer: Chief Accounting Officer |
|
NovelStem International (NovelStem International) Headlines
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