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What Does iCAD Inc’s (NASDAQ:ICAD) Share Price Indicate?

Thomas Auclair

iCAD Inc (NASDAQ:ICAD), a healthcare services company based in United States, received a lot of attention from a substantial price movement on the NasdaqCM over the last few months, increasing to $3.93 at one point, and dropping to the lows of $3.08. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether iCAD’s current trading price of $3.2 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at iCAD’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for iCAD

What’s the opportunity in iCAD?

According to my relative valuation model, the stock seems to be currently fairly priced. In this instance, I’ve used the price-to-book (PB) ratio given that there is not enough information to reliably forecast the stock’s cash flows, and its earnings doesn’t seem to reflect its true value. I find that iCAD’s ratio of 4.66x is trading slightly above its industry peers’ ratio of 3.53x, which means if you buy iCAD today, you’d be paying a relatively fair price for it. And if you believe that iCAD should be trading at this level in the long run, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because iCAD’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of iCAD look like?

NasdaqCM:ICAD Future Profit June 26th 18

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by 77.81% over the next couple of years, the future seems bright for iCAD. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.

What this means for you:

Are you a shareholder? It seems like the market has already priced in ICAD’s positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at ICAD? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on ICAD, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for ICAD, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on iCAD. You can find everything you need to know about iCAD in the latest infographic research report. If you are no longer interested in iCAD, you can use our free platform to see my list of over 50 other stocks with a high growth potential.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.