Affimed NV Profitability Analysis

AFMD Stock  USD 2.62  0.02  0.76%   
Based on Affimed NV's profitability indicators, Affimed NV may not be well positioned to generate adequate gross income at this time. It has a very high odds of underperforming in December. Profitability indicators assess Affimed NV's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2012-12-31
Previous Quarter
-15.5 M
Current Value
-15.1 M
Quarterly Volatility
9.3 M
 
Yuan Drop
 
Covid
At present, Affimed NV's Days Of Sales Outstanding is projected to decrease significantly based on the last few years of reporting. At present, Affimed NV's Income Tax Expense is projected to increase significantly based on the last few years of reporting. The current year's Interest Income is expected to grow to about 534.5 K, whereas Income Before Tax is projected to grow to (100.6 M).
For Affimed NV profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Affimed NV to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Affimed NV utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Affimed NV's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Affimed NV over time as well as its relative position and ranking within its peers.
  

Affimed NV's Revenue Breakdown by Earning Segment

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For information on how to trade Affimed Stock refer to our How to Trade Affimed Stock guide.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Affimed NV. If investors know Affimed will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Affimed NV listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(4.76)
Revenue Per Share
0.493
Quarterly Revenue Growth
(0.90)
Return On Assets
(0.49)
Return On Equity
(1.24)
The market value of Affimed NV is measured differently than its book value, which is the value of Affimed that is recorded on the company's balance sheet. Investors also form their own opinion of Affimed NV's value that differs from its market value or its book value, called intrinsic value, which is Affimed NV's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Affimed NV's market value can be influenced by many factors that don't directly affect Affimed NV's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Affimed NV's value and its price as these two are different measures arrived at by different means. Investors typically determine if Affimed NV is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Affimed NV's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Affimed NV Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Affimed NV's current stock value. Our valuation model uses many indicators to compare Affimed NV value to that of its competitors to determine the firm's financial worth.
Affimed NV is rated second in return on equity category among its peers. It is rated fifth in return on asset category among its peers . At present, Affimed NV's Return On Equity is projected to slightly decrease based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Affimed NV by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Affimed Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Affimed NV

Return On Equity

 = 

Net Income

Total Equity

 = 
-1.24
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Affimed NV

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.49
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Affimed Return On Asset Comparison

Affimed NV is currently under evaluation in return on asset category among its peers.

Affimed NV Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Affimed NV, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Affimed NV will eventually generate negative long term returns. The profitability progress is the general direction of Affimed NV's change in net profit over the period of time. It can combine multiple indicators of Affimed NV, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income592.4 M622.1 M
Operating Income-106.7 M-101.3 M
Income Before Tax-105.9 M-100.6 M
Total Other Income Expense Net726 K649.2 K
Net Loss-105.9 M-100.6 M
Income Tax ExpenseK3.1 K
Net Loss-105.9 M-100.6 M
Net Loss-51.8 M-49.2 M
Interest Income509 K534.5 K
Net Interest Income238 K249.9 K
Change To Netincome5.1 M2.9 M
Net Loss(7.09)(7.45)
Income Quality 1.04  0.99 
Net Income Per E B T 1.00  0.77 

Affimed Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Affimed NV. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Affimed NV position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Affimed NV's important profitability drivers and their relationship over time.

Affimed NV Profitability Trends

Affimed NV profitability trend refers to the progression of profit or loss within a business. An upward trend means that Affimed NV's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Affimed NV's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Affimed NV Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Affimed NV different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Affimed NV in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Affimed NV's future profitability.

Use Affimed NV in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Affimed NV position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Affimed NV will appreciate offsetting losses from the drop in the long position's value.

Affimed NV Pair Trading

Affimed NV Pair Trading Analysis

The ability to find closely correlated positions to Affimed NV could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Affimed NV when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Affimed NV - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Affimed NV to buy it.
The correlation of Affimed NV is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Affimed NV moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Affimed NV moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Affimed NV can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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When determining whether Affimed NV is a strong investment it is important to analyze Affimed NV's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Affimed NV's future performance. For an informed investment choice regarding Affimed Stock, refer to the following important reports:
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For information on how to trade Affimed Stock refer to our How to Trade Affimed Stock guide.
You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
To fully project Affimed NV's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Affimed NV at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Affimed NV's income statement, its balance sheet, and the statement of cash flows.
Potential Affimed NV investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Affimed NV investors may work on each financial statement separately, they are all related. The changes in Affimed NV's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Affimed NV's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.