Lexicon Pharmaceuticals Return On Equity vs. Price To Earning
| LXRX Stock | USD 0.69 0.02 2.38% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter (1.90) | Current Value (1.81) | Quarterly Volatility 0.85146222 |
For Lexicon Pharmaceuticals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Lexicon Pharmaceuticals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Lexicon Pharmaceuticals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Lexicon Pharmaceuticals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Lexicon Pharmaceuticals over time as well as its relative position and ranking within its peers.
Lexicon |
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 Lexicon Pharmaceuticals. If investors know Lexicon 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 Lexicon 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 (0.63) | Earnings Share (0.74) | Revenue Per Share 0.018 | Quarterly Revenue Growth 9.802 | Return On Assets (0.44) |
The market value of Lexicon Pharmaceuticals is measured differently than its book value, which is the value of Lexicon that is recorded on the company's balance sheet. Investors also form their own opinion of Lexicon Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Lexicon 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 Lexicon Pharmaceuticals' market value can be influenced by many factors that don't directly affect Lexicon 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 Lexicon Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Lexicon Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lexicon 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.
Lexicon Pharmaceuticals Price To Earning vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Lexicon Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Lexicon Pharmaceuticals value to that of its competitors to determine the firm's financial worth. Lexicon Pharmaceuticals is rated below average in return on equity category among its peers. It is currently regarded as number one stock in price to earning category among its peers . At this time, Lexicon Pharmaceuticals' Return On Equity is fairly 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 Lexicon Pharmaceuticals' earnings, one of the primary drivers of an investment's value.Lexicon Price To Earning 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.
Lexicon Pharmaceuticals |
| = | -1.36 |
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.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Lexicon Pharmaceuticals |
| = | 21.02 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Lexicon Price To Earning Comparison
Lexicon Pharmaceuticals is currently under evaluation in price to earning category among its peers.
Lexicon Pharmaceuticals Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Lexicon Pharmaceuticals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Lexicon Pharmaceuticals will eventually generate negative long term returns. The profitability progress is the general direction of Lexicon Pharmaceuticals' change in net profit over the period of time. It can combine multiple indicators of Lexicon 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 Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 31 K | 32.5 K | |
| Operating Income | -171.8 M | -163.2 M | |
| Net Loss | -177.1 M | -168.3 M | |
| Income Tax Expense | 386.1 K | 405.4 K | |
| Income Before Tax | -177.1 M | -168.3 M | |
| Total Other Income Expense Net | -5.4 M | -5.6 M | |
| Net Loss | -157.9 M | -165.7 M | |
| Non Operating Income Net Other | 1.8 M | 1.9 M | |
| Net Loss | -117.2 M | -123.1 M | |
| Interest Income | 6.2 M | 6.5 M | |
| Net Interest Income | -2.6 M | -2.7 M | |
| Change To Netincome | 10.4 M | 8.8 M | |
| Net Loss | (0.80) | (0.84) | |
| Income Quality | 0.91 | 0.96 | |
| Net Income Per E B T | 0.91 | 0.54 |
Lexicon Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Lexicon 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 Lexicon 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 Lexicon Pharmaceuticals' important profitability drivers and their relationship over time.
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Additional Tools for Lexicon Stock Analysis
When running Lexicon Pharmaceuticals' price analysis, check to measure Lexicon 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 Lexicon Pharmaceuticals is operating at the current time. Most of Lexicon Pharmaceuticals' value examination focuses on studying past and present price action to predict the probability of Lexicon Pharmaceuticals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lexicon Pharmaceuticals' price. Additionally, you may evaluate how the addition of Lexicon Pharmaceuticals to your portfolios can decrease your overall portfolio volatility.