Sonnet Biotherapeutics Return On Equity vs. Operating Margin

SONN Stock  USD 1.67  0.05  2.91%   
Based on Sonnet Biotherapeutics' profitability indicators, Sonnet Biotherapeutics Holdings may not be well positioned to generate adequate gross income at this time. It has a very high odds of underperforming in January. Profitability indicators assess Sonnet Biotherapeutics' ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
(0.92)
Current Value
(0.88)
Quarterly Volatility
21.90572196
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of the 18th of December 2024, Price To Sales Ratio is likely to drop to 1.12. In addition to that, Days Sales Outstanding is likely to drop to 3.67. At this time, Sonnet Biotherapeutics' Interest Income is very stable compared to the past year. As of the 18th of December 2024, Change To Netincome is likely to grow to about 10.4 M, while Accumulated Other Comprehensive Income is likely to drop (212.2 K).
For Sonnet Biotherapeutics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sonnet Biotherapeutics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sonnet Biotherapeutics Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sonnet Biotherapeutics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sonnet Biotherapeutics Holdings over time as well as its relative position and ranking within its peers.
  
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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 Sonnet Biotherapeutics. If investors know Sonnet 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 Sonnet Biotherapeutics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.96)
Revenue Per Share
0.019
Quarterly Revenue Growth
(0.50)
Return On Assets
(0.97)
Return On Equity
(2.65)
The market value of Sonnet Biotherapeutics is measured differently than its book value, which is the value of Sonnet that is recorded on the company's balance sheet. Investors also form their own opinion of Sonnet Biotherapeutics' value that differs from its market value or its book value, called intrinsic value, which is Sonnet Biotherapeutics' 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 Sonnet Biotherapeutics' market value can be influenced by many factors that don't directly affect Sonnet Biotherapeutics' 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 Sonnet Biotherapeutics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Sonnet Biotherapeutics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sonnet Biotherapeutics' 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.

Sonnet Biotherapeutics Operating Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Sonnet Biotherapeutics's current stock value. Our valuation model uses many indicators to compare Sonnet Biotherapeutics value to that of its competitors to determine the firm's financial worth.
Sonnet Biotherapeutics Holdings is rated fifth in return on equity category among its peers. It is rated second in operating margin category among its peers . At this time, Sonnet Biotherapeutics' Return On Equity is very 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 Sonnet Biotherapeutics' earnings, one of the primary drivers of an investment's value.

Sonnet Operating Margin 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.

Sonnet Biotherapeutics

Return On Equity

 = 

Net Income

Total Equity

 = 
-2.65
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.
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.

Sonnet Biotherapeutics

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
(219.69) %
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.

Sonnet Biotherapeutics Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Sonnet Biotherapeutics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sonnet Biotherapeutics will eventually generate negative long term returns. The profitability progress is the general direction of Sonnet Biotherapeutics' change in net profit over the period of time. It can combine multiple indicators of Sonnet Biotherapeutics, 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
Accumulated Other Comprehensive Income-202.1 K-212.2 K
Operating Income-4.7 M-4.9 M
Income Before Tax-4.9 M-5.1 M
Total Other Income Expense Net-162.9 K-171 K
Net Loss-4.9 M-5.1 M
Net Loss-17.4 M-18.3 M
Non Operating Income Net Other-556.1 K-528.3 K
Net Loss-16.1 M-16.9 M
Income Tax Expense162.9 K154.7 K
Interest Income606.2 K955 K
Net Interest Income-187.3 K-177.9 K
Change To Netincome9.9 M10.4 M
Net Loss-15.6 K-16.4 K
Income Quality 0.16  0.15 
Net Income Per E B T 0.98  1.24 

Sonnet Profitability Driver Comparison

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

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When determining whether Sonnet Biotherapeutics offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Sonnet Biotherapeutics' 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 Sonnet Biotherapeutics Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sonnet Biotherapeutics Holdings Stock:
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To fully project Sonnet Biotherapeutics' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sonnet Biotherapeutics 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 Sonnet Biotherapeutics' income statement, its balance sheet, and the statement of cash flows.
Potential Sonnet Biotherapeutics investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Sonnet Biotherapeutics investors may work on each financial statement separately, they are all related. The changes in Sonnet Biotherapeutics's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Sonnet Biotherapeutics'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.