Fennec Pharmaceuticals Current Valuation vs. Return On Equity

FENC Stock  USD 6.17  0.45  7.87%   
Based on Fennec Pharmaceuticals' profitability indicators, Fennec Pharmaceuticals 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 Fennec Pharmaceuticals' ability to earn profits and add value for shareholders. The current year's EV To Sales is expected to grow to 15.61, whereas Price To Sales Ratio is forecasted to decline to 13.33. The current year's Change To Netincome is expected to grow to about 5.3 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to about 1.1 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.890.9408
Notably Down
Slightly volatile
For Fennec Pharmaceuticals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fennec Pharmaceuticals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fennec Pharmaceuticals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fennec Pharmaceuticals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fennec Pharmaceuticals over time as well as its relative position and ranking within its peers.
  
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For information on how to trade Fennec Stock refer to our How to Trade Fennec Stock guide.
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 Fennec Pharmaceuticals. If investors know Fennec 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 Fennec 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
(0.04)
Revenue Per Share
1.814
Quarterly Revenue Growth
0.07
Return On Assets
0.027
Return On Equity
(10.06)
The market value of Fennec Pharmaceuticals is measured differently than its book value, which is the value of Fennec that is recorded on the company's balance sheet. Investors also form their own opinion of Fennec Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Fennec 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 Fennec Pharmaceuticals' market value can be influenced by many factors that don't directly affect Fennec 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 Fennec Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Fennec Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fennec 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.

Fennec Pharmaceuticals Return On Equity vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Fennec Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Fennec Pharmaceuticals value to that of its competitors to determine the firm's financial worth.
Fennec Pharmaceuticals is rated below average in current valuation category among its peers. It is rated below average in return on equity category among its peers . At present, Fennec Pharmaceuticals' Return On Equity is projected to increase 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 Fennec Pharmaceuticals' earnings, one of the primary drivers of an investment's value.

Fennec Current Valuation vs. Competition

Fennec Pharmaceuticals is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Health Care industry is currently estimated at about 12.47 Billion. Fennec Pharmaceuticals claims roughly 162.76 Million in current valuation contributing just under 2% to equities under Health Care industry.

Fennec Return On Equity vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Fennec Pharmaceuticals

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
162.76 M
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
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.

Fennec Pharmaceuticals

Return On Equity

 = 

Net Income

Total Equity

 = 
-10.06
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.

Fennec Return On Equity Comparison

Fennec Pharmaceuticals is currently under evaluation in return on equity category among its peers.

Fennec Pharmaceuticals Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Fennec Pharmaceuticals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fennec Pharmaceuticals will eventually generate negative long term returns. The profitability progress is the general direction of Fennec Pharmaceuticals' change in net profit over the period of time. It can combine multiple indicators of Fennec 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
Accumulated Other Comprehensive Income1.1 M1.1 M
Operating Income-12.8 M-13.4 M
Net Loss-20.2 M-19.2 M
Income Before Tax-16 M-15.2 M
Total Other Income Expense Net-3.3 M-3.1 M
Net Loss-21.3 M-20.3 M
Net Loss-16 M-15.2 M
Income Tax Expense 1.00  0.95 
Non Operating Income Net Other-110.7 K-105.2 K
Interest Income479 K262.7 K
Net Interest Income-2.9 M-2.7 M
Change To Netincome5.1 M5.3 M
Net Loss(0.60)(0.63)
Income Quality 1.07  0.59 
Net Income Per E B T 0.94  0.77 

Fennec Profitability Driver Comparison

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

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

Fennec Pharmaceuticals Pair Trading

Fennec Pharmaceuticals Pair Trading Analysis

The ability to find closely correlated positions to Fennec 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 Fennec 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 Fennec 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 Fennec Pharmaceuticals to buy it.
The correlation of Fennec 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 Fennec Pharmaceuticals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fennec 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 Fennec 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 Fennec Pharmaceuticals position

In addition to having Fennec 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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When determining whether Fennec Pharmaceuticals offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Fennec 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 Fennec Pharmaceuticals Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Fennec Pharmaceuticals Stock:
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For information on how to trade Fennec Stock refer to our How to Trade Fennec Stock guide.
You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
To fully project Fennec Pharmaceuticals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Fennec 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 Fennec Pharmaceuticals' income statement, its balance sheet, and the statement of cash flows.
Potential Fennec Pharmaceuticals investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Fennec Pharmaceuticals investors may work on each financial statement separately, they are all related. The changes in Fennec Pharmaceuticals's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Fennec 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.