Psychemedics Corporation Stock Price and Value Analysis

Should you buy Psychemedics Corporation stock? (NasdaqCM:PMD). Let's see how it does in our automated value investing analysis system.

PMD Free Cash Flow Trend

Free Cash Flow trendline for PMD
Free Cash Flow trendline for Psychemedics Corporation

Based on historical returns, we believe that Psychemedics Corporation can grow its free cash at a rate of about 2%. That's positive!

AdvantagesDisadvantagesNeutral
  • This stock is on sale.
  • This company is making money at a modest rate.
  • This company is less known than others.
  • This company has wild ups and downs.
  • This company pays no dividend.

Inside the PMD Numbers

PMD Price
(Psychemedics Corporation stock price per share)
$6.98
[?] PMD Fair Price
(based on intrinsic value)
$8.08
[?] PMD Safety Price (based on a variable margin of safety) $4.85
[?] PE Ratio versus Sector 82% higher than other Healthcare stocks
[?] PE Ratio versus Industry 90% lower than other Diagnostics & Research stocks
[?] Cash Yield 11.87%
[?] Free Cash Flow Jitter 71%

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 17,773 shares shorted. With 4,195,437 shares available for purchase and an average trading volume over the past 10 trading days of 29,285, it would take at least 0.607 days for all of the short holders to cover their shorts.

Is Psychemedics Corporation Stock on Sale?

We believe that Psychemedics Corporation may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Psychemedics Corporation looks like a price in the fair value range. Based on our analysis—if the company keeps making money the way it has been—you could be looking at a good stock. See Before You Buy for your next steps.

Should You Buy PMD Stock?

Does Psychemedics Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.