Galapagos Return On Asset vs. EBITDA

GLPG Stock  USD 27.64  0.48  1.71%   
Based on Galapagos' profitability indicators, Galapagos NV ADR is performing exceptionally good at this time. It has a great odds to showcase excellent profitability results in December. Profitability indicators assess Galapagos' ability to earn profits and add value for shareholders. At this time, Galapagos' Days Sales Outstanding is most likely to increase in the upcoming years. The Galapagos' current Days Of Sales Outstanding is estimated to increase to 113.41, while Price To Sales Ratio is projected to decrease to 7.86. At this time, Galapagos' Net Income is most likely to increase significantly in the upcoming years. The Galapagos' current Income Tax Expense is estimated to increase to about 10.1 M, while Operating Income is forecasted to increase to (83.8 M).
For Galapagos profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Galapagos to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Galapagos NV ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Galapagos's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Galapagos NV ADR over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
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 Galapagos. If investors know Galapagos 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 Galapagos 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
0.748
Earnings Share
(0.96)
Revenue Per Share
0.1977
Quarterly Revenue Growth
(0.50)
Return On Assets
(0.02)
The market value of Galapagos NV ADR is measured differently than its book value, which is the value of Galapagos that is recorded on the company's balance sheet. Investors also form their own opinion of Galapagos' value that differs from its market value or its book value, called intrinsic value, which is Galapagos' 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 Galapagos' market value can be influenced by many factors that don't directly affect Galapagos' 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 Galapagos' value and its price as these two are different measures arrived at by different means. Investors typically determine if Galapagos is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Galapagos' 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.

Galapagos NV ADR EBITDA vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Galapagos's current stock value. Our valuation model uses many indicators to compare Galapagos value to that of its competitors to determine the firm's financial worth.
Galapagos NV ADR is rated # 3 in return on asset category among its peers. It is one of the top stocks in ebitda category among its peers . At this time, Galapagos' EBITDA is most likely to increase significantly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Galapagos 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.

Galapagos EBITDA vs. Return On Asset

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.

Galapagos

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.0238
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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Galapagos

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
51.04 M
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.

Galapagos EBITDA Comparison

Galapagos is currently under evaluation in ebitda category among its peers.

Galapagos Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Galapagos, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Galapagos will eventually generate negative long term returns. The profitability progress is the general direction of Galapagos' change in net profit over the period of time. It can combine multiple indicators of Galapagos, 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-7.1 M-6.7 M
Operating Income-88.3 M-83.8 M
Income Before Tax5.6 M5.9 M
Total Other Income Expense Net93.9 M98.6 M
Net Income211.7 M222.3 M
Income Tax Expense9.6 M10.1 M
Net Loss-153.1 M-145.4 M
Net Loss-196.2 M-186.4 M
Interest Income63.6 M66.7 M
Net Interest Income54.7 M57.4 M
Change To Netincome9.8 M9.3 M
Net Income Per Share 3.21  3.37 
Income Quality(1.92)(1.82)
Net Income Per E B T 37.64  39.52 

Galapagos Profitability Driver Comparison

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

Use Galapagos 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 Galapagos 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 Galapagos will appreciate offsetting losses from the drop in the long position's value.

Galapagos Pair Trading

Galapagos NV ADR Pair Trading Analysis

The ability to find closely correlated positions to Galapagos could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Galapagos 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 Galapagos - 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 Galapagos NV ADR to buy it.
The correlation of Galapagos 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 Galapagos moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Galapagos NV ADR 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 Galapagos 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

Use Investing Themes to Complement your Galapagos position

In addition to having Galapagos 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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Run Aluminum Thematic Idea Now

Aluminum
Aluminum Theme
Companies involved in production of aluminum. The Aluminum theme has 41 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 Aluminum Theme or any other thematic opportunities.
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When determining whether Galapagos NV ADR is a strong investment it is important to analyze Galapagos' 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 Galapagos' future performance. For an informed investment choice regarding Galapagos Stock, refer to the following important reports:
Check out Risk vs Return Analysis.
You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
To fully project Galapagos' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Galapagos NV ADR 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 Galapagos' income statement, its balance sheet, and the statement of cash flows.
Potential Galapagos investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Galapagos investors may work on each financial statement separately, they are all related. The changes in Galapagos's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Galapagos'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.