Flora Growth Price To Book vs. Return On Asset

FLGC Stock  USD 1.31  0.09  7.38%   
Considering the key profitability indicators obtained from Flora Growth's historical financial statements, Flora Growth Corp 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 Flora Growth's ability to earn profits and add value for shareholders. As of November 22, 2024, Price To Sales Ratio is expected to decline to 0.12. In addition to that, Days Sales Outstanding is expected to decline to 32.38. The current year's Total Other Income Expense Net is expected to grow to about 2.2 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (147 K).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.430.2332
Way Up
Slightly volatile
For Flora Growth profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Flora Growth to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Flora Growth Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Flora Growth's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Flora Growth Corp over time as well as its relative position and ranking within its peers.
  
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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 Flora Growth. If investors know Flora 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 Flora Growth listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.35)
Revenue Per Share
7.41
Quarterly Revenue Growth
(0.27)
Return On Assets
(0.17)
Return On Equity
(1.35)
The market value of Flora Growth Corp is measured differently than its book value, which is the value of Flora that is recorded on the company's balance sheet. Investors also form their own opinion of Flora Growth's value that differs from its market value or its book value, called intrinsic value, which is Flora Growth'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 Flora Growth's market value can be influenced by many factors that don't directly affect Flora Growth'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 Flora Growth's value and its price as these two are different measures arrived at by different means. Investors typically determine if Flora Growth is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Flora Growth'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.

Flora Growth Corp Return On Asset vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Flora Growth's current stock value. Our valuation model uses many indicators to compare Flora Growth value to that of its competitors to determine the firm's financial worth.
Flora Growth Corp is rated # 4 in price to book category among its peers. It is rated # 5 in return on asset category among its peers . The current year's Return On Assets is expected to grow to -2.29. 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 Flora Growth's earnings, one of the primary drivers of an investment's value.

Flora Return On Asset vs. Price To Book

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.

Flora Growth

P/B

 = 

MV Per Share

BV Per Share

 = 
4.12 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.
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.

Flora Growth

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.17
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.

Flora Return On Asset Comparison

Flora Growth is currently under evaluation in return on asset category among its peers.

Flora Growth Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Flora Growth, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Flora Growth will eventually generate negative long term returns. The profitability progress is the general direction of Flora Growth's change in net profit over the period of time. It can combine multiple indicators of Flora Growth, 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 Income-140 K-147 K
Operating Income-50.4 M-47.8 M
Income Before Tax-48.3 M-45.9 M
Total Other Income Expense Net2.1 M2.2 M
Net Loss-19.1 M-20.1 M
Net Loss-47.4 M-45 M
Income Tax Expense-1.6 M-1.5 M
Net Interest Income-58 K-60.9 K
Net Loss-56.2 M-59 M
Interest Income50.4 K44.8 K
Change To Netincome5.6 M4.9 M
Net Loss(7.75)(8.14)
Income Quality 0.18  0.17 
Net Income Per E B T 1.18  0.83 

Flora Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Flora Growth. 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 Flora Growth 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 Flora Growth's important profitability drivers and their relationship over time.

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Our tools can tell you how much better you can do entering a position in Flora Growth without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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In addition to having Flora Growth 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.

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Candy and Soda Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Candy and Soda theme has 13 constituents at this time.
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When determining whether Flora Growth Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Flora Growth's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Flora Growth Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Flora Growth Corp Stock:
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To fully project Flora Growth's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Flora Growth Corp 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 Flora Growth's income statement, its balance sheet, and the statement of cash flows.
Potential Flora Growth investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Flora Growth investors may work on each financial statement separately, they are all related. The changes in Flora Growth's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Flora Growth'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.