Guardant Health Price To Sales vs. Profit Margin

GH Stock  USD 32.65  1.67  5.39%   
Considering the key profitability indicators obtained from Guardant Health's historical financial statements, Guardant Health may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Guardant Health's ability to earn profits and add value for shareholders.

Guardant Health Price To Sales Ratio

5.1

As of now, Guardant Health's Days Sales Outstanding is increasing as compared to previous years. The Guardant Health's current Sales General And Administrative To Revenue is estimated to increase to 0.51, while Price To Sales Ratio is projected to decrease to 5.10. As of now, Guardant Health's Income Tax Expense is increasing as compared to previous years. The Guardant Health's current Income Quality is estimated to increase to 0.74, while Accumulated Other Comprehensive Income is projected to decrease to (3.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.430.5974
Way Down
Slightly volatile
For Guardant Health profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Guardant Health to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Guardant Health utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Guardant Health's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Guardant Health over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in Guardant Stock please use our How to Invest in Guardant Health guide.
Is Health Care Providers & Services 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 Guardant Health. If investors know Guardant 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 Guardant Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(4.28)
Revenue Per Share
5.7
Quarterly Revenue Growth
0.339
Return On Assets
(0.16)
Return On Equity
(6.09)
The market value of Guardant Health is measured differently than its book value, which is the value of Guardant that is recorded on the company's balance sheet. Investors also form their own opinion of Guardant Health's value that differs from its market value or its book value, called intrinsic value, which is Guardant Health'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 Guardant Health's market value can be influenced by many factors that don't directly affect Guardant Health'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 Guardant Health's value and its price as these two are different measures arrived at by different means. Investors typically determine if Guardant Health is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Guardant Health'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.

Guardant Health Profit Margin vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Guardant Health's current stock value. Our valuation model uses many indicators to compare Guardant Health value to that of its competitors to determine the firm's financial worth.
Guardant Health is rated # 5 in price to sales category among its peers. It is rated below average in profit margin category among its peers . As of now, Guardant Health's Price To Sales Ratio is decreasing as compared to previous years. 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 Guardant Health's earnings, one of the primary drivers of an investment's value.

Guardant Health's Earnings Breakdown by Geography

Guardant Profit Margin vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Guardant Health

P/S

 = 

MV Per Share

Revenue Per Share

 = 
5.83 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Guardant Health

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.74) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Guardant Profit Margin Comparison

Guardant Health is currently under evaluation in profit margin category among its peers.

Guardant Health Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Guardant Health, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Guardant Health will eventually generate negative long term returns. The profitability progress is the general direction of Guardant Health's change in net profit over the period of time. It can combine multiple indicators of Guardant Health, 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-3.7 M-3.9 M
Net Interest Income32.8 M34.4 M
Interest Income35.4 M37.1 M
Operating Income-564.7 M-536.5 M
Net Loss-479.4 M-455.5 M
Income Before Tax-478.8 M-454.8 M
Total Other Income Expense Net86 M90.3 M
Net Loss-589.1 M-559.7 M
Net Loss-479.4 M-455.5 M
Income Tax Expense685 K719.2 K
Non Operating Income Net Other-95.8 M-91.1 M
Change To Netincome119.9 M70.3 M
Net Loss(4.28)(4.50)
Income Quality 0.68  0.74 
Net Income Per E B T 1.00  0.80 

Guardant Profitability Driver Comparison

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

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Check out Risk vs Return Analysis.
For more detail on how to invest in Guardant Stock please use our How to Invest in Guardant Health guide.
You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
To fully project Guardant Health's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Guardant Health 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 Guardant Health's income statement, its balance sheet, and the statement of cash flows.
Potential Guardant Health investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Guardant Health investors may work on each financial statement separately, they are all related. The changes in Guardant Health's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Guardant Health'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.