89bio EBITDA vs. Net Income

ETNB Stock  USD 8.07  0.18  2.28%   
Considering 89bio's profitability and operating efficiency indicators, 89bio Inc 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 89bio's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
-134.5 M
Current Value
-127.7 M
Quarterly Volatility
44.9 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
At present, 89bio's Payables Turnover is projected to increase slightly based on the last few years of reporting. The current year's Graham Number is expected to grow to 25.44, whereas PTB Ratio is forecasted to decline to 0.74.
For 89bio profitability analysis, we use financial ratios and fundamental drivers that measure the ability of 89bio to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well 89bio Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between 89bio's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of 89bio Inc 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 89bio. If investors know 89bio 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 89bio listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(2.96)
Return On Assets
(0.41)
Return On Equity
(0.73)
The market value of 89bio Inc is measured differently than its book value, which is the value of 89bio that is recorded on the company's balance sheet. Investors also form their own opinion of 89bio's value that differs from its market value or its book value, called intrinsic value, which is 89bio'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 89bio's market value can be influenced by many factors that don't directly affect 89bio'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 89bio's value and its price as these two are different measures arrived at by different means. Investors typically determine if 89bio is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, 89bio'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.

89bio Inc Net Income vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining 89bio's current stock value. Our valuation model uses many indicators to compare 89bio value to that of its competitors to determine the firm's financial worth.
89bio Inc is rated below average in ebitda category among its peers. It is rated below average in net income category among its peers . At present, 89bio's EBITDA is projected to decrease significantly 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 89bio's earnings, one of the primary drivers of an investment's value.

89bio Net Income vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

89bio

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
(134.46 M)
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

89bio

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
(142.19 M)
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

89bio Net Income Comparison

89bio is currently under evaluation in net income category among its peers.

89bio Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in 89bio, profitability is also one of the essential criteria for including it into their portfolios because, without profit, 89bio will eventually generate negative long term returns. The profitability progress is the general direction of 89bio's change in net profit over the period of time. It can combine multiple indicators of 89bio, 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 Income190 K199.5 K
Operating Income-151.2 M-143.6 M
Net Loss-126.6 M-120.2 M
Income Before Tax-138.3 M-131.4 M
Total Other Income Expense Net12.9 M13.5 M
Net Loss-91.8 M-96.4 M
Net Loss-142.2 M-135.1 M
Income Tax Expense3.9 M4.1 M
Non Operating Income Net Other2.5 M2.6 M
Net Interest Income8.8 M9.3 M
Interest Income13.3 M14 M
Change To Netincome9.3 M8.9 M
Net Loss(2.00)(2.10)
Income Quality 0.91  0.62 
Net Income Per E B T 1.03  0.81 

89bio Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on 89bio. 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 89bio 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 89bio's important profitability drivers and their relationship over time.

Use 89bio 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 89bio 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 89bio will appreciate offsetting losses from the drop in the long position's value.

89bio Pair Trading

89bio Inc Pair Trading Analysis

The ability to find closely correlated positions to 89bio could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace 89bio 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 89bio - 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 89bio Inc to buy it.
The correlation of 89bio 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 89bio moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if 89bio Inc 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 89bio 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 89bio position

In addition to having 89bio 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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When determining whether 89bio Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of 89bio's 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 89bio Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on 89bio Inc Stock:
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You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
To fully project 89bio's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of 89bio Inc 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 89bio's income statement, its balance sheet, and the statement of cash flows.
Potential 89bio investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although 89bio investors may work on each financial statement separately, they are all related. The changes in 89bio's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on 89bio'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.