MEI Pharma Return On Equity vs. Cash And Equivalents
| MEIP Stock | USD 2.43 0.03 1.22% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.48 | Current Value 0.51 | Quarterly Volatility 0.63494479 |
For MEI Pharma profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MEI Pharma to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MEI Pharma utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MEI Pharma's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MEI Pharma over time as well as its relative position and ranking within its peers.
MEI |
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 MEI Pharma. If investors know MEI 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 MEI Pharma 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 MEI Pharma is measured differently than its book value, which is the value of MEI that is recorded on the company's balance sheet. Investors also form their own opinion of MEI Pharma's value that differs from its market value or its book value, called intrinsic value, which is MEI Pharma'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 MEI Pharma's market value can be influenced by many factors that don't directly affect MEI Pharma'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 MEI Pharma's value and its price as these two are different measures arrived at by different means. Investors typically determine if MEI Pharma is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MEI Pharma'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.
MEI Pharma Cash And Equivalents vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining MEI Pharma's current stock value. Our valuation model uses many indicators to compare MEI Pharma value to that of its competitors to determine the firm's financial worth. MEI Pharma is rated below average in return on equity category among its peers. It is rated below average in cash and equivalents category among its peers . At this time, MEI Pharma's Return On Equity is relatively stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value MEI Pharma 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.MEI Cash And Equivalents 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.
MEI Pharma |
| = | -0.94 |
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.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
MEI Pharma |
| = | 153.25 M |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
MEI Cash And Equivalents Comparison
MEI Pharma is currently under evaluation in cash and equivalents category among its peers.
MEI Pharma Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in MEI Pharma, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MEI Pharma will eventually generate negative long term returns. The profitability progress is the general direction of MEI Pharma's change in net profit over the period of time. It can combine multiple indicators of MEI Pharma, 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 | ||
| Operating Income | 13.1 M | 13.7 M | |
| Income Before Tax | 16 M | 16.8 M | |
| Net Income | 16 M | 16.8 M | |
| Income Tax Expense | 8.8 M | 9.2 M | |
| Total Other Income Expense Net | 3.7 M | 4.6 M | |
| Net Income From Continuing Ops | 16 M | 16.8 M | |
| Non Operating Income Net Other | 22 M | 23.1 M | |
| Net Loss | -28.7 M | -30.1 M | |
| Interest Income | 3.8 M | 4 M | |
| Net Interest Income | 3.8 M | 4 M | |
| Change To Netincome | 3.5 M | 3.7 M | |
| Net Income Per Share | 2.40 | 2.52 | |
| Income Quality | (3.26) | (3.10) | |
| Net Income Per E B T | 1.15 | 1.09 |
MEI Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on MEI Pharma. 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 MEI Pharma 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 MEI Pharma's important profitability drivers and their relationship over time.
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Additional Tools for MEI Stock Analysis
When running MEI Pharma's price analysis, check to measure MEI Pharma's 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 MEI Pharma is operating at the current time. Most of MEI Pharma's value examination focuses on studying past and present price action to predict the probability of MEI Pharma's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move MEI Pharma's price. Additionally, you may evaluate how the addition of MEI Pharma to your portfolios can decrease your overall portfolio volatility.