Verrica Pharmaceuticals Shares Outstanding vs. Operating Margin

VRCA Stock  USD 0.65  0.06  10.17%   
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 April. 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 297.27, whereas Operating Cash Flow Sales Ratio is forecasted to decline to (9.09). At present, Verrica Pharmaceuticals' Net Interest Income is projected to decrease significantly based on the last few years of reporting. The current year's Interest Income is expected to grow to about 2.7 M, whereas Operating Income is projected to grow to (56.2 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin1.00.98
Fairly Up
Pretty Stable
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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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
(1.84)
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 Operating Margin vs. Shares Outstanding 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 shares outstanding category among its peers. It is rated first in operating margin category among its peers . The ratio of Shares Outstanding to Operating Margin for Verrica Pharmaceuticals is about  7,790,587 . At present, Verrica Pharmaceuticals' Operating Profit Margin is projected to drop based on the last few years of reporting. 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 Operating Margin vs. Shares Outstanding

Outstanding Shares are shares of common stock of a public company that were purchased by investors after they were authorized and issued by the company to the public. Outstanding Shares are typically reported on fully diluted basis, including exotic instruments such as options, or convertibles bonds.

Verrica Pharmaceuticals

Shares Outstanding

 = 

Public Shares

-

Repurchased

 = 
90.56 M
Outstanding shares that are stated on company Balance Sheet are used when calculating many important valuation and performance indicators including Return on Equity, Market Cap, EPS and many others.
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.

Verrica Pharmaceuticals

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
11.62 %
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.

Verrica Operating Margin Comparison

Verrica Pharmaceuticals is currently under evaluation in operating margin 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 Income519.3 K545.3 K
Operating Income-59.2 M-56.2 M
Net Loss-43.5 M-41.3 M
Income Before Tax-60.3 M-57.3 M
Total Other Income Expense Net-1.1 M-1.2 M
Net Loss-22 M-23.1 M
Net Loss-60.3 M-57.3 M
Income Tax Expense768.3 K729.9 K
Interest Income2.6 M2.7 M
Non Operating Income Net Other-917.1 K-871.2 K
Change To Netincome7.8 M4.8 M
Net Loss(1.70)(1.78)
Income Quality 0.66  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.

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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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You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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.