Axsome Therapeutics Operating Margin vs. Price To Book

AXSM Stock  USD 88.04  2.69  2.96%   
Based on Axsome Therapeutics' profitability indicators, Axsome Therapeutics may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Axsome Therapeutics' ability to earn profits and add value for shareholders. At this time, Axsome Therapeutics' Days Sales Outstanding is very stable compared to the past year. As of the 23rd of December 2024, Days Of Sales Outstanding is likely to grow to 221.60, while Price To Sales Ratio is likely to drop 12.69. At this time, Axsome Therapeutics' Change To Netincome is very stable compared to the past year. As of the 23rd of December 2024, Income Quality is likely to grow to 0.84, though Operating Income is likely to grow to (220.2 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.720.9037
Significantly Down
Slightly volatile
For Axsome Therapeutics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Axsome Therapeutics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Axsome Therapeutics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Axsome Therapeutics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Axsome Therapeutics over time as well as its relative position and ranking within its peers.
  

Axsome Therapeutics' Revenue Breakdown by Earning Segment

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To learn how to invest in Axsome Stock, please use our How to Invest in Axsome Therapeutics guide.
Is Pharmaceuticals 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 Axsome Therapeutics. If investors know Axsome 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 Axsome Therapeutics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(6.58)
Revenue Per Share
7.108
Quarterly Revenue Growth
0.813
Return On Assets
(0.26)
Return On Equity
(1.72)
The market value of Axsome Therapeutics is measured differently than its book value, which is the value of Axsome that is recorded on the company's balance sheet. Investors also form their own opinion of Axsome Therapeutics' value that differs from its market value or its book value, called intrinsic value, which is Axsome Therapeutics' 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 Axsome Therapeutics' market value can be influenced by many factors that don't directly affect Axsome Therapeutics' 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 Axsome Therapeutics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Axsome Therapeutics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Axsome Therapeutics' 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.

Axsome Therapeutics Price To Book vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Axsome Therapeutics's current stock value. Our valuation model uses many indicators to compare Axsome Therapeutics value to that of its competitors to determine the firm's financial worth.
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Axsome Therapeutics is rated below average in operating margin category among its peers. It is rated second in price to book category among its peers . At this time, Axsome Therapeutics' Operating Profit Margin is very stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Axsome Therapeutics 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.

Axsome Price To Book 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.

Axsome Therapeutics

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(0.44) %
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.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Axsome Therapeutics

P/B

 = 

MV Per Share

BV Per Share

 = 
47.36 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

Axsome Price To Book Comparison

47.36285.9444.1926.1018.30100%
Axsome Therapeutics is currently under evaluation in price to book category among its peers.

Axsome Therapeutics Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Axsome Therapeutics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Axsome Therapeutics will eventually generate negative long term returns. The profitability progress is the general direction of Axsome Therapeutics' change in net profit over the period of time. It can combine multiple indicators of Axsome Therapeutics, 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
Operating Income-231.8 M-220.2 M
Income Before Tax-238.3 M-226.4 M
Total Other Income Expense Net-6.5 M-6.1 M
Net Loss-239.2 M-227.3 M
Income Tax Expense960 K912 K
Net Loss-239.2 M-227.3 M
Net Loss-168.4 M-160 M
Interest Income1.4 M1.2 M
Net Interest Income-6.5 M-6.1 M
Non Operating Income Net Other-5.1 M-4.9 M
Change To Netincome45.9 M48.2 M
Net Loss(5.27)(5.00)
Income Quality 0.61  0.84 
Net Income Per E B T 1.00  0.82 

Axsome Profitability Driver Comparison

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

Use Axsome Therapeutics 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 Axsome Therapeutics 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 Axsome Therapeutics will appreciate offsetting losses from the drop in the long position's value.

Axsome Therapeutics Pair Trading

Axsome Therapeutics Pair Trading Analysis

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

In addition to having Axsome Therapeutics 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.

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Climate Change
Climate Change Theme
Large and medium sized entities that are committing to fully or partially replace some traditional services or products with renewables sources of energy in order to combat global climate change. The Climate Change theme has 41 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 Climate Change Theme or any other thematic opportunities.
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When determining whether Axsome Therapeutics is a strong investment it is important to analyze Axsome Therapeutics' 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 Axsome Therapeutics' future performance. For an informed investment choice regarding Axsome Stock, refer to the following important reports:
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To learn how to invest in Axsome Stock, please use our How to Invest in Axsome Therapeutics guide.
You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
To fully project Axsome Therapeutics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Axsome Therapeutics 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 Axsome Therapeutics' income statement, its balance sheet, and the statement of cash flows.
Potential Axsome Therapeutics investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Axsome Therapeutics investors may work on each financial statement separately, they are all related. The changes in Axsome Therapeutics's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Axsome Therapeutics'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.