Verrica Pharmaceuticals Return On Asset vs. Shares Owned By Institutions

VRCA Stock  USD 1.19  0.01  0.85%   
Based on Verrica Pharmaceuticals' profitability indicators, Verrica Pharmaceuticals may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Verrica Pharmaceuticals' ability to earn profits and add value for shareholders. At present, Verrica Pharmaceuticals' Price To Sales Ratio is projected to increase significantly based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 330.30, whereas Operating Cash Flow Sales Ratio is forecasted to decline to (7.91). At present, Verrica Pharmaceuticals' Accumulated Other Comprehensive Income is projected to increase significantly based on the last few years of reporting. The current year's Net Interest Income is expected to grow to about 605.9 K, whereas Operating Income is projected to grow to (62.5 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin1.00.8544
Fairly Up
Slightly volatile
For Verrica Pharmaceuticals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Verrica Pharmaceuticals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Verrica Pharmaceuticals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Verrica Pharmaceuticals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Verrica Pharmaceuticals over time as well as its relative position and ranking within its peers.
  
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For information on how to trade Verrica Stock refer to our How to Trade Verrica Stock guide.
Is Pharmaceuticals 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 Verrica Pharmaceuticals. If investors know Verrica 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 Verrica Pharmaceuticals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.86)
Revenue Per Share
0.198
Quarterly Revenue Growth
27.445
Return On Assets
(0.71)
Return On Equity
(20.60)
The market value of Verrica Pharmaceuticals is measured differently than its book value, which is the value of Verrica that is recorded on the company's balance sheet. Investors also form their own opinion of Verrica Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Verrica 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 Verrica Pharmaceuticals' market value can be influenced by many factors that don't directly affect Verrica 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 Verrica Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Verrica Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Verrica 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.

Verrica Pharmaceuticals Shares Owned By Institutions vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Verrica Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Verrica Pharmaceuticals value to that of its competitors to determine the firm's financial worth.
Verrica Pharmaceuticals is rated below average in return on asset category among its peers. It also is rated below average in shares owned by institutions category among its peers . 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 Verrica Pharmaceuticals' earnings, one of the primary drivers of an investment's value.

Verrica Shares Owned By Institutions vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Verrica Pharmaceuticals

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.71
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.

Verrica Pharmaceuticals

Shares Held by Institutions

 = 

Funds and Banks

+

Firms

 = 
16.49 %
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.

Verrica Shares Owned By Institutions Comparison

Verrica Pharmaceuticals is currently under evaluation in shares owned by institutions category among its peers.

Verrica Pharmaceuticals Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Verrica Pharmaceuticals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Verrica Pharmaceuticals will eventually generate negative long term returns. The profitability progress is the general direction of Verrica Pharmaceuticals' change in net profit over the period of time. It can combine multiple indicators of Verrica 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 ReportedProjected for Next Year
Net Interest Income577 K605.9 K
Operating Income-65.8 M-62.5 M
Net Loss-48.3 M-45.9 M
Income Before Tax-67 M-63.6 M
Total Other Income Expense Net-1.2 M-1.3 M
Net Loss-22 M-23.1 M
Net Loss-67 M-63.6 M
Income Tax Expense668.1 K634.7 K
Interest Income2.2 M2.3 M
Non Operating Income Net Other-917.1 K-871.2 K
Change To Netincome7.8 M4.8 M
Net Loss(1.48)(1.55)
Income Quality 0.58  0.90 
Net Income Per E B T 1.02  0.86 

Verrica Profitability Driver Comparison

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

Use Verrica Pharmaceuticals 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 Verrica Pharmaceuticals 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 Verrica Pharmaceuticals will appreciate offsetting losses from the drop in the long position's value.

Verrica Pharmaceuticals Pair Trading

Verrica Pharmaceuticals Pair Trading Analysis

The ability to find closely correlated positions to Verrica Pharmaceuticals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Verrica Pharmaceuticals 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 Verrica Pharmaceuticals - 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 Verrica Pharmaceuticals to buy it.
The correlation of Verrica Pharmaceuticals 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 Verrica Pharmaceuticals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Verrica Pharmaceuticals 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 Verrica Pharmaceuticals 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Verrica Pharmaceuticals position

In addition to having Verrica Pharmaceuticals 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.

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Conservative Funds
Conservative Funds Theme
Funds or Etfs that invest using buy-and-hold investment strategy in companies with consistent growth over many years of operation. The Conservative Funds theme has 37 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 Conservative Funds Theme or any other thematic opportunities.
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When determining whether Verrica Pharmaceuticals offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Verrica Pharmaceuticals' 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 Verrica Pharmaceuticals Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Verrica Pharmaceuticals Stock:
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For information on how to trade Verrica Stock refer to our How to Trade Verrica Stock guide.
You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
To fully project Verrica Pharmaceuticals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Verrica Pharmaceuticals 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 Verrica Pharmaceuticals' income statement, its balance sheet, and the statement of cash flows.
Potential Verrica Pharmaceuticals investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Verrica Pharmaceuticals investors may work on each financial statement separately, they are all related. The changes in Verrica Pharmaceuticals's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Verrica Pharmaceuticals'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.