Lexicon Pharmaceuticals Price To Book vs. Operating Margin

LXRX Stock  USD 0.80  0.02  2.44%   
Based on Lexicon Pharmaceuticals' profitability indicators, Lexicon Pharmaceuticals may not be well positioned to generate adequate gross income at this time. It has a very high odds of underperforming in January. Profitability indicators assess Lexicon Pharmaceuticals' ability to earn profits and add value for shareholders. At this time, Lexicon Pharmaceuticals' Days Sales Outstanding is fairly stable compared to the past year. Sales General And Administrative To Revenue is likely to rise to 326.90 in 2024, whereas Price To Sales Ratio is likely to drop 208.67 in 2024. At this time, Lexicon Pharmaceuticals' Accumulated Other Comprehensive Income is fairly stable compared to the past year. Income Tax Expense is likely to rise to about 405.4 K in 2024, despite the fact that Operating Income is likely to grow to (163.2 M).
For Lexicon Pharmaceuticals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lexicon Pharmaceuticals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lexicon Pharmaceuticals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lexicon Pharmaceuticals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lexicon Pharmaceuticals over time as well as its relative position and ranking within its peers.
  
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For more information on how to buy Lexicon Stock please use our How to Invest in Lexicon Pharmaceuticals 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 Lexicon Pharmaceuticals. If investors know Lexicon 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 Lexicon Pharmaceuticals 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
(0.63)
Earnings Share
(0.74)
Revenue Per Share
0.018
Quarterly Revenue Growth
9.802
Return On Assets
(0.44)
The market value of Lexicon Pharmaceuticals is measured differently than its book value, which is the value of Lexicon that is recorded on the company's balance sheet. Investors also form their own opinion of Lexicon Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Lexicon Pharmaceuticals' 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 Lexicon Pharmaceuticals' market value can be influenced by many factors that don't directly affect Lexicon Pharmaceuticals' 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 Lexicon Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Lexicon Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lexicon Pharmaceuticals' 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.

Lexicon Pharmaceuticals Operating Margin vs. Price To Book Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Lexicon Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Lexicon Pharmaceuticals value to that of its competitors to determine the firm's financial worth.
Lexicon Pharmaceuticals is rated below average in price to book category among its peers. It is rated below average in operating margin category among its peers . At this time, Lexicon Pharmaceuticals' Operating Profit Margin is fairly stable compared to the past year. 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 Lexicon Pharmaceuticals' earnings, one of the primary drivers of an investment's value.

Lexicon Operating Margin 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.

Lexicon Pharmaceuticals

P/B

 = 

MV Per Share

BV Per Share

 = 
1.63 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.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Lexicon Pharmaceuticals

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(36.40) %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Lexicon Operating Margin Comparison

Lexicon Pharmaceuticals is currently under evaluation in operating margin category among its peers.

Lexicon Pharmaceuticals Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Lexicon Pharmaceuticals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lexicon Pharmaceuticals will eventually generate negative long term returns. The profitability progress is the general direction of Lexicon Pharmaceuticals' change in net profit over the period of time. It can combine multiple indicators of Lexicon Pharmaceuticals, 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 Income31 K32.5 K
Operating Income-171.8 M-163.2 M
Net Loss-177.1 M-168.3 M
Income Tax Expense386.1 K405.4 K
Income Before Tax-177.1 M-168.3 M
Total Other Income Expense Net-5.4 M-5.6 M
Net Loss-157.9 M-165.7 M
Non Operating Income Net Other1.8 M1.9 M
Net Loss-117.2 M-123.1 M
Interest Income6.2 M6.5 M
Net Interest Income-2.6 M-2.7 M
Change To Netincome10.4 M8.8 M
Net Loss(0.80)(0.84)
Income Quality 0.91  0.96 
Net Income Per E B T 0.91  0.54 

Lexicon Profitability Driver Comparison

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

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Additional Tools for Lexicon Stock Analysis

When running Lexicon Pharmaceuticals' price analysis, check to measure Lexicon Pharmaceuticals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lexicon Pharmaceuticals is operating at the current time. Most of Lexicon Pharmaceuticals' value examination focuses on studying past and present price action to predict the probability of Lexicon Pharmaceuticals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lexicon Pharmaceuticals' price. Additionally, you may evaluate how the addition of Lexicon Pharmaceuticals to your portfolios can decrease your overall portfolio volatility.