Pharma Mar Return On Equity vs. Net Income
| PHM Stock | EUR 75.50 0.10 0.13% |
For Pharma Mar profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Pharma Mar to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Pharma Mar SA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Pharma Mar's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Pharma Mar SA over time as well as its relative position and ranking within its peers.
Pharma |
Pharma Mar SA Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Pharma Mar's current stock value. Our valuation model uses many indicators to compare Pharma Mar value to that of its competitors to determine the firm's financial worth. Pharma Mar SA is considered to be number one stock in return on equity category among its peers. It also is considered to be number one stock in net income category among its peers making up about 197,362,380 of Net Income per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Pharma Mar by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Pharma Mar's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Pharma Net Income vs. Return On Equity
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.
Pharma Mar |
| = | 0.47 |
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.
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.
Pharma Mar |
| = | 92.86 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.
Pharma Net Income Comparison
Pharma Mar is currently under evaluation in net income category among its peers.
Pharma Mar Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Pharma Mar, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Pharma Mar will eventually generate negative long term returns. The profitability progress is the general direction of Pharma Mar's change in net profit over the period of time. It can combine multiple indicators of Pharma Mar, 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.
Pharma Mar, S.A., a biopharmaceutical company, engages in the discovery and development of marine-derived anticancer drugs in Spain and internationally. Pharma Mar, S.A. was founded in 1986 and is based in Madrid, Spain. PHARMA MAR operates under Biotechnology classification in Spain and is traded on Madrid SE C.A.T.S.. It employs 599 people.
Pharma Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Pharma Mar. 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 Pharma Mar 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 Pharma Mar's important profitability drivers and their relationship over time.
Use Pharma Mar 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 Pharma Mar 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 Pharma Mar will appreciate offsetting losses from the drop in the long position's value.Pharma Mar Pair Trading
Pharma Mar SA Pair Trading Analysis
The ability to find closely correlated positions to Pharma Mar could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Pharma Mar 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 Pharma Mar - 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 Pharma Mar SA to buy it.
The correlation of Pharma Mar 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 Pharma Mar moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Pharma Mar SA 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 Pharma Mar 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 Pharma Mar position
In addition to having Pharma Mar 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 Market Neutral Funds Thematic Idea Now
Market Neutral Funds
Funds or Etfs that invest in both long and short positions of different entities to enhance returns from broad market movements over time. The Market Neutral Funds theme has 47 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 Market Neutral Funds Theme or any other thematic opportunities.
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Other Information on Investing in Pharma Stock
To fully project Pharma Mar's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Pharma Mar SA 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 Pharma Mar's income statement, its balance sheet, and the statement of cash flows.