Agios Pharm Net Income vs. Return On Asset
| AGIO Stock | USD 43.37 2.65 5.76% |
For Agios Pharm profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Agios Pharm to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Agios Pharm utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Agios Pharm's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Agios Pharm over time as well as its relative position and ranking within its peers.
Agios |
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 Agios Pharm. If investors know Agios 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 Agios Pharm 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 Agios Pharm is measured differently than its book value, which is the value of Agios that is recorded on the company's balance sheet. Investors also form their own opinion of Agios Pharm's value that differs from its market value or its book value, called intrinsic value, which is Agios Pharm'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 Agios Pharm's market value can be influenced by many factors that don't directly affect Agios Pharm'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 Agios Pharm's value and its price as these two are different measures arrived at by different means. Investors typically determine if Agios Pharm is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Agios Pharm'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.
Agios Pharm Return On Asset vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Agios Pharm's current stock value. Our valuation model uses many indicators to compare Agios Pharm value to that of its competitors to determine the firm's financial worth. Agios Pharm is rated below average in net income category among its peers. It is rated below average in return on asset category among its peers . 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 Agios Pharm's earnings, one of the primary drivers of an investment's value.Agios Return On Asset vs. Net Income
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.
Agios Pharm |
| = | (352.09 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.
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.
Agios Pharm |
| = | -0.18 |
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.
Agios Return On Asset Comparison
Agios Pharm is currently under evaluation in return on asset category among its peers.
Agios Pharm Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Agios Pharm, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Agios Pharm will eventually generate negative long term returns. The profitability progress is the general direction of Agios Pharm's change in net profit over the period of time. It can combine multiple indicators of Agios Pharm, 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.
Agios Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery and development of medicines in the field of cellular metabolism and adjacent areas of biology. Agios Pharmaceuticals, Inc. was incorporated in 2007 and is headquartered in Cambridge, Massachusetts. Agios Pharmaceuticals operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 0 people.
Agios Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Agios Pharm. 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 Agios Pharm 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 Agios Pharm's important profitability drivers and their relationship over time.
Use Agios Pharm 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 Agios Pharm 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 Agios Pharm will appreciate offsetting losses from the drop in the long position's value.Agios Pharm Pair Trading
Agios Pharm Pair Trading Analysis
The ability to find closely correlated positions to Agios Pharm could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Agios Pharm 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 Agios Pharm - 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 Agios Pharm to buy it.
The correlation of Agios Pharm 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 Agios Pharm moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Agios Pharm 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 Agios Pharm 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 Agios Pharm position
In addition to having Agios Pharm 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?
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An experimental equal-weighted index theme of selected equities generated based on Macroaxis rating and scoring system. The Macroaxis Index theme has 52 constituents at this time.
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Check out Trending Equities. To learn how to invest in Agios Stock, please use our How to Invest in Agios Pharm guide.You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
To fully project Agios Pharm's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Agios Pharm 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 Agios Pharm's income statement, its balance sheet, and the statement of cash flows.