Biogen Return On Equity vs. Net Income
| BIIB34 Stock | BRL 152.70 2.54 1.69% |
For Biogen profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Biogen to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Biogen Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Biogen's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Biogen Inc over time as well as its relative position and ranking within its peers.
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Biogen Inc Net Income vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Biogen's current stock value. Our valuation model uses many indicators to compare Biogen value to that of its competitors to determine the firm's financial worth. Biogen Inc is number one stock in return on equity category among its peers. It also is number one stock in net income category among its peers making up about 7,692,041,522 of Net Income per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Biogen by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Biogen's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Biogen Net Income 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.
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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.
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.
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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.
Biogen Net Income Comparison
Biogen is currently under evaluation in net income category among its peers.
Biogen Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Biogen, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Biogen will eventually generate negative long term returns. The profitability progress is the general direction of Biogen's change in net profit over the period of time. It can combine multiple indicators of Biogen, 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.
Biogen Inc. discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases worldwide. The company was founded in 1978 and is headquartered in Cambridge, Massachusetts. Biogen operates under Drug Manufacturers - Major classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 7800 people.
Biogen Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Biogen. 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 Biogen 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 Biogen's important profitability drivers and their relationship over time.
Use Biogen 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 Biogen 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 Biogen will appreciate offsetting losses from the drop in the long position's value.Biogen Pair Trading
Biogen Inc Pair Trading Analysis
The ability to find closely correlated positions to Biogen could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Biogen 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 Biogen - 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 Biogen Inc to buy it.
The correlation of Biogen 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 Biogen moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Biogen Inc 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 Biogen 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 Biogen position
In addition to having Biogen 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 Financials ETFs Thematic Idea Now
Financials ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Financials ETFs theme has 45 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 Financials ETFs Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Biogen Stock
When determining whether Biogen Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Biogen'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 Biogen Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Biogen Inc Stock:Check out Trending Equities. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
To fully project Biogen's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Biogen Inc 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 Biogen's income statement, its balance sheet, and the statement of cash flows.