IDEAYA Biosciences Inc. Struggles with Guru Ratings

IDEAYA Biosciences Inc. received a mixed rating of 45% based on its fundamentals, with significant failures in profit margins and cash flow operations. Investors should be cautious due to poor performance across several key metrics.

Date: 07-09-2024

AI Rating: 4

The analysis of IDEAYA Biosciences Inc. (IDYA) reveals a concerning fundamental rating of 45% based on the Small-Cap Growth Investor model by Motley Fool. This score indicates significant weaknesses in their financial performance, which could impact investor sentiment and stock price.

The report shows **failures** in crucial metrics such as:

Profit Margin: FAIL
Cash Flow from Operations: FAIL
Sales and EPS Growth Compared to Last Year: FAIL
Daily Dollar Volume: FAIL

The failed profit margin signifies that IDEAYA is not converting its revenue into profit effectively, which could deter potential investors. Similarly, the failure in cash flow from operations indicates that the company may be struggling to maintain operational liquidity and invest in growth opportunities.

Additionally, the company has also **failed** in maintaining consistent profit margins and in meeting the criteria of 'The Fool Ratio' (P/E to growth), signaling more extensive issues regarding valuation and growth prospects.

On a slightly positive note, the company passed metrics for:

R&D as a Percentage of Sales: PASS
Cash and Cash Equivalents: PASS
Accounts Receivable to Sales: PASS
Long Term Debt/Equity Ratio: PASS
Sales: PASS
Price: PASS

This indicates that while the company is investing in research and development, holds adequate cash reserves, and has reasonable sales figures, the overarching failures in profit metrics and cash flow present substantial risks.

Investors may need to consider these factors seriously before making decisions regarding IDEAYA Biosciences Inc. stock, as the red flags in key performance indicators could lead to stock price volatility.

Stocks: IDYA