Iterum Therapeutics Net Income vs. Return On Equity
| ITRM Stock | USD 2.02 0.01 0.49% |
Net Loss | First Reported 2016-12-31 | Previous Quarter -5 M | Current Value -6.1 M | Quarterly Volatility 17.9 M |
For Iterum Therapeutics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Iterum Therapeutics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Iterum Therapeutics PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Iterum Therapeutics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Iterum Therapeutics PLC over time as well as its relative position and ranking within its peers.
Iterum |
Is Pharmaceuticals 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 Iterum Therapeutics. If investors know Iterum 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 Iterum Therapeutics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.76) | Quarterly Revenue Growth (1.00) | Return On Assets (0.73) | Return On Equity (5.56) |
The market value of Iterum Therapeutics PLC is measured differently than its book value, which is the value of Iterum that is recorded on the company's balance sheet. Investors also form their own opinion of Iterum Therapeutics' value that differs from its market value or its book value, called intrinsic value, which is Iterum Therapeutics' 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 Iterum Therapeutics' market value can be influenced by many factors that don't directly affect Iterum Therapeutics' 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 Iterum Therapeutics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Iterum Therapeutics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Iterum Therapeutics' 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.
Iterum Therapeutics PLC Return On Equity vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Iterum Therapeutics's current stock value. Our valuation model uses many indicators to compare Iterum Therapeutics value to that of its competitors to determine the firm's financial worth. Iterum Therapeutics PLC is rated second overall in net income category among its peers. It is rated below average in return on equity category among its peers . Iterum Therapeutics reported last year Net Loss of (38.37 Million). Comparative valuation analysis is a catch-all technique that is used if you cannot value Iterum Therapeutics 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.Iterum Return On Equity vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Iterum Therapeutics |
| = | (38.37 M) |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
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.
Iterum Therapeutics |
| = | -5.56 |
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.
Iterum Return On Equity Comparison
Iterum Therapeutics is currently under evaluation in return on equity category among its peers.
Iterum Therapeutics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Iterum Therapeutics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Iterum Therapeutics will eventually generate negative long term returns. The profitability progress is the general direction of Iterum Therapeutics' change in net profit over the period of time. It can combine multiple indicators of Iterum Therapeutics, 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 | ||
| Accumulated Other Comprehensive Income | 1,000.00 | 1,050 | |
| Net Interest Income | -943 K | -990.1 K | |
| Interest Income | 990.1 K | 1 M | |
| Operating Income | -47.5 M | -49.8 M | |
| Net Loss | -31.1 M | -32.7 M | |
| Income Before Tax | -37.8 M | -39.6 M | |
| Total Other Income Expense Net | 9.7 M | 10.2 M | |
| Net Loss | -40 M | -42 M | |
| Net Loss | -38.4 M | -40.3 M | |
| Income Tax Expense | 613 K | 527.3 K | |
| Non Operating Income Net Other | 176.4 K | 156.8 K | |
| Change To Netincome | 22.4 M | 16.8 M | |
| Net Loss | (2.96) | (3.11) | |
| Income Quality | 1.02 | 0.87 | |
| Net Income Per E B T | 1.02 | 0.81 |
Iterum Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Iterum Therapeutics. 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 Iterum Therapeutics 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 Iterum Therapeutics' important profitability drivers and their relationship over time.
Use Iterum Therapeutics 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 Iterum Therapeutics 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 Iterum Therapeutics will appreciate offsetting losses from the drop in the long position's value.Iterum Therapeutics Pair Trading
Iterum Therapeutics PLC Pair Trading Analysis
The ability to find closely correlated positions to Iterum Therapeutics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Iterum Therapeutics 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 Iterum Therapeutics - 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 Iterum Therapeutics PLC to buy it.
The correlation of Iterum Therapeutics 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 Iterum Therapeutics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Iterum Therapeutics 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 Iterum Therapeutics 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 Iterum Therapeutics position
In addition to having Iterum Therapeutics 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 Long Short Funds Thematic Idea Now
Long Short Funds
Funds or Etfs that are designed to hedge away market risk by investing in combination of bonds, stocks, derivative instruments as well as short positions to maximize returns irrespective of market conditions. The Long Short Funds theme has 46 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 Long Short Funds Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Risk vs Return Analysis. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
To fully project Iterum Therapeutics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Iterum Therapeutics 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 Iterum Therapeutics' income statement, its balance sheet, and the statement of cash flows.