Amarin PLC Return On Equity vs. Price To Book
| AMRN Stock | USD 0.50 0.03 5.66% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (0.11) | Current Value (0.10) | Quarterly Volatility 11.69159968 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.73 | 0.5394 |
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For Amarin PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Amarin PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Amarin PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Amarin PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Amarin PLC over time as well as its relative position and ranking within its peers.
Amarin |
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 Amarin PLC. If investors know Amarin 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 Amarin PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.94) | Earnings Share (0.10) | Revenue Per Share 0.588 | Quarterly Revenue Growth (0.36) | Return On Assets (0.03) |
The market value of Amarin PLC is measured differently than its book value, which is the value of Amarin that is recorded on the company's balance sheet. Investors also form their own opinion of Amarin PLC's value that differs from its market value or its book value, called intrinsic value, which is Amarin PLC'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 Amarin PLC's market value can be influenced by many factors that don't directly affect Amarin PLC'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 Amarin PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Amarin PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amarin PLC'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.
Amarin PLC Price To Book vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Amarin PLC's current stock value. Our valuation model uses many indicators to compare Amarin PLC value to that of its competitors to determine the firm's financial worth. Amarin PLC is rated below average in return on equity category among its peers. It is rated below average in price to book category among its peers . At this time, Amarin PLC's Return On Equity is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Amarin PLC's earnings, one of the primary drivers of an investment's value.Amarin Price To Book 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.
Amarin PLC |
| = | -0.0726 |
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.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.
Amarin PLC |
| = | 0.41 X |
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Amarin Price To Book Comparison
Amarin PLC is currently under evaluation in price to book category among its peers.
Amarin PLC Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Amarin PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Amarin PLC will eventually generate negative long term returns. The profitability progress is the general direction of Amarin PLC's change in net profit over the period of time. It can combine multiple indicators of Amarin PLC, 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 Reported | Projected for Next Year | ||
| Operating Income | -67.6 M | -64.2 M | |
| Income Before Tax | -53.7 M | -56.4 M | |
| Total Other Income Expense Net | 13.9 M | 14.6 M | |
| Net Loss | -59.1 M | -62.1 M | |
| Income Tax Expense | 5.4 M | 5.7 M | |
| Net Loss | -121.7 M | -127.8 M | |
| Net Loss | -52.5 M | -55.1 M | |
| Interest Income | 10 M | 10.5 M | |
| Net Interest Income | 10 M | 10.5 M | |
| Change To Netincome | 30.7 M | 32.2 M | |
| Net Loss | (0.15) | (0.15) | |
| Income Quality | (0.12) | (0.11) | |
| Net Income Per E B T | 1.10 | 0.66 |
Amarin Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Amarin PLC. 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 Amarin PLC 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 Amarin PLC's important profitability drivers and their relationship over time.
Use Amarin PLC 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 Amarin PLC 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 Amarin PLC will appreciate offsetting losses from the drop in the long position's value.Amarin PLC Pair Trading
Amarin PLC Pair Trading Analysis
The ability to find closely correlated positions to Amarin PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Amarin PLC 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 Amarin PLC - 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 Amarin PLC to buy it.
The correlation of Amarin PLC 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 Amarin PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Amarin PLC 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 Amarin PLC 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.Use Investing Themes to Complement your Amarin PLC position
In addition to having Amarin PLC in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Investor Favorites Thematic Idea Now
Investor Favorites
Macroaxis most traded equities with largest long positions over the last 2 years. The Investor Favorites theme has 21 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Investor Favorites Theme or any other thematic opportunities.
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Check out Trending Equities. To learn how to invest in Amarin Stock, please use our How to Invest in Amarin PLC guide.You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
To fully project Amarin PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Amarin PLC 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 Amarin PLC's income statement, its balance sheet, and the statement of cash flows.