Beauty Health Operating Margin vs. Return On Asset

SKIN Stock  USD 1.42  0.03  2.16%   
Considering the key profitability indicators obtained from Beauty Health's historical financial statements, Beauty Health Co may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in December. Profitability indicators assess Beauty Health's ability to earn profits and add value for shareholders.

Beauty Health Operating Profit Margin

(0.31)

At this time, Beauty Health's Days Sales Outstanding is very stable compared to the past year. As of the 22nd of November 2024, Operating Cash Flow Sales Ratio is likely to grow to 0.06, while Price To Sales Ratio is likely to drop 0.98. At this time, Beauty Health's Net Interest Income is very stable compared to the past year. As of the 22nd of November 2024, Total Other Income Expense Net is likely to grow to about 30.5 M, though Accumulated Other Comprehensive Income is likely to grow to (2.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.660.3897
Way Up
Slightly volatile
For Beauty Health profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Beauty Health to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Beauty Health Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Beauty Health's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Beauty Health Co over time as well as its relative position and ranking within its peers.
  
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Is Personal Care Products 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 Beauty Health. If investors know Beauty 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 Beauty Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.39)
Revenue Per Share
2.783
Quarterly Revenue Growth
(0.19)
Return On Assets
(0.06)
Return On Equity
(0.38)
The market value of Beauty Health is measured differently than its book value, which is the value of Beauty that is recorded on the company's balance sheet. Investors also form their own opinion of Beauty Health's value that differs from its market value or its book value, called intrinsic value, which is Beauty Health'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 Beauty Health's market value can be influenced by many factors that don't directly affect Beauty Health'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 Beauty Health's value and its price as these two are different measures arrived at by different means. Investors typically determine if Beauty Health is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Beauty Health'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.

Beauty Health Return On Asset vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Beauty Health's current stock value. Our valuation model uses many indicators to compare Beauty Health value to that of its competitors to determine the firm's financial worth.
Beauty Health Co is currently regarded as top stock in operating margin category among its peers. It also is currently regarded as top stock in return on asset category among its peers . At this time, Beauty Health's Operating Profit Margin is very 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 Beauty Health's earnings, one of the primary drivers of an investment's value.

Beauty Return On Asset vs. Operating Margin

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.

Beauty Health

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(0.27) %
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.
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.

Beauty Health

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.059
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.

Beauty Return On Asset Comparison

Beauty Health is currently under evaluation in return on asset category among its peers.

Beauty Health Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Beauty Health, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Beauty Health will eventually generate negative long term returns. The profitability progress is the general direction of Beauty Health's change in net profit over the period of time. It can combine multiple indicators of Beauty Health, 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-3 M-2.9 M
Net Interest Income9.5 M10 M
Operating Income-130.9 M-124.4 M
Net Loss-100.1 M-105.1 M
Income Before Tax-101.9 M-107 M
Total Other Income Expense Net29 M30.5 M
Net Income Applicable To Common Shares39.9 M41.9 M
Net Loss-100.1 M-105.1 M
Income Tax Expense-1.8 M-1.9 M
Interest Income23.2 M13.8 M
Non Operating Income Net Other95.1 M99.9 M
Change To Netincome-48.7 M-46.3 M
Net Loss(0.76)(0.80)
Income Quality(0.22)(0.21)
Net Income Per E B T 0.98  1.03 

Beauty Profitability Driver Comparison

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

Use Beauty Health 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 Beauty Health 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 Beauty Health will appreciate offsetting losses from the drop in the long position's value.

Beauty Health Pair Trading

Beauty Health Co Pair Trading Analysis

The ability to find closely correlated positions to Beauty Health could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Beauty Health 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 Beauty Health - 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 Beauty Health Co to buy it.
The correlation of Beauty Health 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 Beauty Health moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Beauty Health 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 Beauty Health 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Beauty Health position

In addition to having Beauty Health 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 Measuring and Control Equipment Thematic Idea Now

Measuring and Control Equipment
Measuring and Control Equipment Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Measuring and Control Equipment theme has 61 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 Measuring and Control Equipment Theme or any other thematic opportunities.
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When determining whether Beauty Health offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Beauty Health'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 Beauty Health Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Beauty Health Co Stock:
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You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
To fully project Beauty Health's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Beauty Health 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 Beauty Health's income statement, its balance sheet, and the statement of cash flows.
Potential Beauty Health investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Beauty Health investors may work on each financial statement separately, they are all related. The changes in Beauty Health's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Beauty Health'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.