MorphoSys Cash And Equivalents vs. Return On Equity
Based on MorphoSys' profitability indicators, MorphoSys AG ADR may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess MorphoSys' ability to earn profits and add value for shareholders.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons.
For MorphoSys profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MorphoSys to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MorphoSys AG ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MorphoSys's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MorphoSys AG ADR over time as well as its relative position and ranking within its peers.
MorphoSys |
MorphoSys AG ADR Return On Equity vs. Cash And Equivalents Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining MorphoSys's current stock value. Our valuation model uses many indicators to compare MorphoSys value to that of its competitors to determine the firm's financial worth. MorphoSys AG ADR is considered to be number one stock in cash and equivalents category among its peers. It is rated below average in return on equity category among its peers . Comparative valuation analysis is a catch-all technique that is used if you cannot value MorphoSys 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.MorphoSys Return On Equity vs. Cash And Equivalents
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.
MorphoSys |
| = | 726.83 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).
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.
MorphoSys |
| = | -1.84 |
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.
MorphoSys Return On Equity Comparison
MorphoSys is currently under evaluation in return on equity category among its peers.
MorphoSys Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in MorphoSys, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MorphoSys will eventually generate negative long term returns. The profitability progress is the general direction of MorphoSys' change in net profit over the period of time. It can combine multiple indicators of MorphoSys, 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.
MorphoSys AG, a commercial-stage biopharmaceutical company, engages in the discovery, development, and commercialization of therapeutic antibodies for patients suffering from cancer and autoimmune diseases in the United States. The company was founded in 1992 and is headquartered in Planegg, Germany. Morphosys operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 648 people.
MorphoSys Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on MorphoSys. 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 MorphoSys 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 MorphoSys' important profitability drivers and their relationship over time.
Use MorphoSys 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 MorphoSys 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 MorphoSys will appreciate offsetting losses from the drop in the long position's value.MorphoSys Pair Trading
MorphoSys AG ADR Pair Trading Analysis
The ability to find closely correlated positions to MorphoSys could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace MorphoSys 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 MorphoSys - 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 MorphoSys AG ADR to buy it.
The correlation of MorphoSys 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 MorphoSys moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if MorphoSys AG ADR 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 MorphoSys 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 MorphoSys position
In addition to having MorphoSys 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 Restaraunts Hotels Motels Thematic Idea Now
Restaraunts Hotels Motels
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Restaraunts Hotels Motels theme has 61 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 Restaraunts Hotels Motels Theme or any other thematic opportunities.
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Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Consideration for investing in MorphoSys Stock
If you are still planning to invest in MorphoSys AG ADR check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the MorphoSys' history and understand the potential risks before investing.
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