Reviva Pharmaceuticals Profitability Analysis

RVPH Stock  USD 1.15  0.01  0.88%   
Based on Reviva Pharmaceuticals' profitability indicators, Reviva Pharmaceuticals Holdings 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 Reviva Pharmaceuticals' ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2018-09-30
Previous Quarter
-7.4 M
Current Value
-7.9 M
Quarterly Volatility
M
 
Covid
As of now, Reviva Pharmaceuticals' Current Ratio is increasing as compared to previous years. The Reviva Pharmaceuticals' current Graham Number is estimated to increase to 5.93, while Book Value Per Share is projected to decrease to 0.50.
For Reviva Pharmaceuticals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Reviva Pharmaceuticals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Reviva Pharmaceuticals Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Reviva Pharmaceuticals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Reviva Pharmaceuticals Holdings over time as well as its relative position and ranking within its peers.
  
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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 Reviva Pharmaceuticals. If investors know Reviva 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 Reviva Pharmaceuticals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.08)
Return On Assets
(2.34)
Return On Equity
(17.95)
The market value of Reviva Pharmaceuticals is measured differently than its book value, which is the value of Reviva that is recorded on the company's balance sheet. Investors also form their own opinion of Reviva Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Reviva 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 Reviva Pharmaceuticals' market value can be influenced by many factors that don't directly affect Reviva 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 Reviva Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Reviva Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Reviva 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.

Reviva Pharmaceuticals Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Reviva Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Reviva Pharmaceuticals value to that of its competitors to determine the firm's financial worth.
Reviva Pharmaceuticals Holdings is rated below average in return on equity category among its peers. It also is rated below average in return on asset category among its peers . As of now, Reviva Pharmaceuticals' Return On Equity is decreasing as compared to previous years. 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 Reviva Pharmaceuticals' earnings, one of the primary drivers of an investment's value.

Reviva Return On Asset 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.

Reviva Pharmaceuticals

Return On Equity

 = 

Net Income

Total Equity

 = 
-17.95
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.
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.

Reviva Pharmaceuticals

Return On Asset

 = 

Net Income

Total Assets

 = 
-2.34
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.

Reviva Return On Asset Comparison

Reviva Pharmaceuticals is currently under evaluation in return on asset category among its peers.

Reviva Pharmaceuticals Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Reviva Pharmaceuticals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Reviva Pharmaceuticals will eventually generate negative long term returns. The profitability progress is the general direction of Reviva Pharmaceuticals' change in net profit over the period of time. It can combine multiple indicators of Reviva 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 Income-49.1 M-51.5 M
Net Loss-21.9 M-20.8 M
Income Tax Expense23.9 K25.1 K
Net Interest Income499 K523.9 K
Interest Income499 K523.9 K
Operating Income-39.5 M-37.5 M
Net Loss-39.3 M-37.3 M
Income Before Tax-39.2 M-37.3 M
Total Other Income Expense Net-239.2 K-227.3 K
Net Loss-39.3 M-37.3 M
Change To Netincome334.3 K218.1 K
Net Loss(1.43)(1.51)
Income Quality 0.70  0.66 
Net Income Per E B T 0.90  0.80 

Reviva Profitability Driver Comparison

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

Reviva Pharmaceuticals Profitability Trends

Reviva Pharmaceuticals profitability trend refers to the progression of profit or loss within a business. An upward trend means that Reviva Pharmaceuticals' profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Reviva Pharmaceuticals' gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Reviva Pharmaceuticals Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Reviva Pharmaceuticals different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Reviva Pharmaceuticals in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Reviva Pharmaceuticals' future profitability.

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When determining whether Reviva Pharmaceuticals is a strong investment it is important to analyze Reviva Pharmaceuticals' 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 Reviva Pharmaceuticals' future performance. For an informed investment choice regarding Reviva Stock, refer to the following important reports:
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You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
To fully project Reviva Pharmaceuticals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Reviva Pharmaceuticals 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 Reviva Pharmaceuticals' income statement, its balance sheet, and the statement of cash flows.
Potential Reviva Pharmaceuticals investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Reviva Pharmaceuticals investors may work on each financial statement separately, they are all related. The changes in Reviva Pharmaceuticals's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Reviva Pharmaceuticals'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.