Arrowhead Pharmaceuticals Net Income vs. Current Valuation

ARWR Stock  USD 23.11  2.96  11.35%   
Based on Arrowhead Pharmaceuticals' profitability indicators, Arrowhead 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 Arrowhead Pharmaceuticals' ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
1998-03-31
Previous Quarter
-170.8 M
Current Value
-170.5 M
Quarterly Volatility
35.1 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Arrowhead Pharmaceuticals' Price To Sales Ratio is relatively stable compared to the past year. As of 12/04/2024, EV To Sales is likely to grow to 690.41, while Sales General And Administrative To Revenue is likely to drop 26.42. At this time, Arrowhead Pharmaceuticals' Accumulated Other Comprehensive Income is relatively stable compared to the past year. As of 12/04/2024, Non Operating Income Net Other is likely to grow to about 923.7 K, though Income Before Tax is likely to grow to (572.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.540.86
Way Down
Very volatile
For Arrowhead Pharmaceuticals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Arrowhead Pharmaceuticals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Arrowhead Pharmaceuticals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Arrowhead Pharmaceuticals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Arrowhead Pharmaceuticals 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 Arrowhead Pharmaceuticals. If investors know Arrowhead 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 Arrowhead 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
0.098
Earnings Share
(5.00)
Revenue Per Share
0.17
Quarterly Revenue Growth
(0.94)
Return On Assets
(0.41)
The market value of Arrowhead Pharmaceuticals is measured differently than its book value, which is the value of Arrowhead that is recorded on the company's balance sheet. Investors also form their own opinion of Arrowhead Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Arrowhead 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 Arrowhead Pharmaceuticals' market value can be influenced by many factors that don't directly affect Arrowhead 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 Arrowhead Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Arrowhead Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arrowhead 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.

Arrowhead Pharmaceuticals Current Valuation vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Arrowhead Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Arrowhead Pharmaceuticals value to that of its competitors to determine the firm's financial worth.
Arrowhead Pharmaceuticals is rated below average in net income category among its peers. It is rated below average in current valuation category among its peers . Arrowhead Pharmaceuticals reported last year Net Loss of (599.49 Million). Comparative valuation analysis is a catch-all technique that is used if you cannot value Arrowhead Pharmaceuticals by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Arrowhead Current Valuation 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.

Arrowhead Pharmaceuticals

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
(609.69 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.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Arrowhead Pharmaceuticals

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
3.11 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Arrowhead Current Valuation vs Competition

Arrowhead Pharmaceuticals is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Health Care industry is presently estimated at about 65.87 Billion. Arrowhead Pharmaceuticals holds roughly 3.11 Billion in current valuation claiming about 5% of equities under Health Care industry.

Arrowhead Pharmaceuticals Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Arrowhead Pharmaceuticals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Arrowhead Pharmaceuticals will eventually generate negative long term returns. The profitability progress is the general direction of Arrowhead Pharmaceuticals' change in net profit over the period of time. It can combine multiple indicators of Arrowhead 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 Income4.8 MM
Operating Income-601.1 M-571 M
Income Before Tax-602.3 M-572.1 M
Total Other Income Expense Net-1.2 M-1.1 M
Net Loss-609.7 M-579.2 M
Income Tax Expense-2.8 M-2.6 M
Net Loss-609.7 M-579.2 M
Non Operating Income Net Other879.8 K923.7 K
Net Loss-184.7 M-175.5 M
Interest Income22.7 M23.9 M
Net Interest Income-9.6 M-9.2 M
Change To Netincome104 M109.2 M
Net Loss(5.00)(5.26)
Income Quality 0.76  0.80 
Net Income Per E B T 1.00  1.09 

Arrowhead Profitability Driver Comparison

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

Use Arrowhead Pharmaceuticals 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 Arrowhead Pharmaceuticals 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 Arrowhead Pharmaceuticals will appreciate offsetting losses from the drop in the long position's value.

Arrowhead Pharmaceuticals Pair Trading

Arrowhead Pharmaceuticals Pair Trading Analysis

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

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Additional Tools for Arrowhead Stock Analysis

When running Arrowhead Pharmaceuticals' price analysis, check to measure Arrowhead 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 Arrowhead Pharmaceuticals is operating at the current time. Most of Arrowhead Pharmaceuticals' value examination focuses on studying past and present price action to predict the probability of Arrowhead Pharmaceuticals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Arrowhead Pharmaceuticals' price. Additionally, you may evaluate how the addition of Arrowhead Pharmaceuticals to your portfolios can decrease your overall portfolio volatility.