Lumos Pharma Cash And Equivalents vs. Price To Sales

LUMO Stock  USD 4.31  0.02  0.46%   
Based on the key profitability measurements obtained from Lumos Pharma's financial statements, Lumos Pharma 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 Lumos Pharma's ability to earn profits and add value for shareholders.
For Lumos Pharma profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lumos Pharma to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lumos Pharma utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lumos Pharma's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lumos Pharma over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
To learn how to invest in Lumos Stock, please use our How to Invest in Lumos Pharma guide.
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 Lumos Pharma. If investors know Lumos 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 Lumos Pharma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Lumos Pharma is measured differently than its book value, which is the value of Lumos that is recorded on the company's balance sheet. Investors also form their own opinion of Lumos Pharma's value that differs from its market value or its book value, called intrinsic value, which is Lumos Pharma'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 Lumos Pharma's market value can be influenced by many factors that don't directly affect Lumos Pharma'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 Lumos Pharma's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lumos Pharma is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lumos Pharma'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.

Lumos Pharma Price To Sales vs. Cash And Equivalents Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lumos Pharma's current stock value. Our valuation model uses many indicators to compare Lumos Pharma value to that of its competitors to determine the firm's financial worth.
Lumos Pharma is rated below average in cash and equivalents category among its peers. It is rated fourth overall in price to sales category among its peers . The ratio of Cash And Equivalents to Price To Sales for Lumos Pharma is about  4,681,603 . 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 Lumos Pharma's earnings, one of the primary drivers of an investment's value.

Lumos Price To Sales vs. Cash And Equivalents

Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Lumos Pharma

Cash

 = 

Bank Deposits

+

Liquidities

 = 
79.51 M
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
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.

Lumos Pharma

P/S

 = 

MV Per Share

Revenue Per Share

 = 
16.98 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.

Lumos Price To Sales Comparison

Lumos Pharma is currently under evaluation in price to sales category among its peers.

Lumos Pharma Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lumos Pharma, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lumos Pharma will eventually generate negative long term returns. The profitability progress is the general direction of Lumos Pharma's change in net profit over the period of time. It can combine multiple indicators of Lumos Pharma, 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.
Lumos Pharma, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapeutics for rare diseases. Its lead therapeutic candidate LUM-201 is an oral growth hormone secretagogue ibutamoren, which is in Phase 2 clinical trial for the treatment of pediatric growth hormone deficiency and other rare endocrine disorders. Lumos Pharma operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 32 people.

Lumos Profitability Driver Comparison

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

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When determining whether Lumos Pharma offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Lumos Pharma'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 Lumos Pharma Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lumos Pharma Stock:
Check out Correlation Analysis.
To learn how to invest in Lumos Stock, please use our How to Invest in Lumos Pharma guide.
You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
To fully project Lumos Pharma's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Lumos Pharma 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 Lumos Pharma's income statement, its balance sheet, and the statement of cash flows.
Potential Lumos Pharma investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Lumos Pharma investors may work on each financial statement separately, they are all related. The changes in Lumos Pharma's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Lumos Pharma'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.