Foghorn Therapeutics Return On Equity vs. Operating Margin
| FHTX Stock | USD 4.82 0.27 5.30% |
For Foghorn Therapeutics profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Foghorn Therapeutics to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Foghorn Therapeutics utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Foghorn Therapeutics's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Foghorn Therapeutics over time as well as its relative position and ranking within its peers.
Foghorn |
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 Foghorn Therapeutics. If investors know Foghorn 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 Foghorn Therapeutics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (1.85) | Revenue Per Share 0.513 | Quarterly Revenue Growth (0.55) | Return On Assets (0.20) | Return On Equity (4.70) |
The market value of Foghorn Therapeutics is measured differently than its book value, which is the value of Foghorn that is recorded on the company's balance sheet. Investors also form their own opinion of Foghorn Therapeutics' value that differs from its market value or its book value, called intrinsic value, which is Foghorn Therapeutics' 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 Foghorn Therapeutics' market value can be influenced by many factors that don't directly affect Foghorn Therapeutics' 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 Foghorn Therapeutics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Foghorn Therapeutics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Foghorn Therapeutics' 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.
Foghorn Therapeutics Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Foghorn Therapeutics's current stock value. Our valuation model uses many indicators to compare Foghorn Therapeutics value to that of its competitors to determine the firm's financial worth. Foghorn Therapeutics is rated # 3 in return on equity category among its peers. It is one of the top stocks in operating margin 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 Foghorn Therapeutics' earnings, one of the primary drivers of an investment's value.Foghorn 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.
Foghorn Therapeutics |
| = | -4.7 |
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.
Foghorn Therapeutics |
| = | (3.05) % |
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.
Foghorn Operating Margin Comparison
Foghorn Therapeutics is currently under evaluation in operating margin category among its peers.
Foghorn Therapeutics Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Foghorn Therapeutics, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Foghorn Therapeutics will eventually generate negative long term returns. The profitability progress is the general direction of Foghorn Therapeutics' change in net profit over the period of time. It can combine multiple indicators of Foghorn Therapeutics, 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.
Foghorn Therapeutics Inc., a clinical-stage biopharmaceutical company, discovers and develops medicines targeting genetically determined dependencies within the chromatin regulatory system. Foghorn Therapeutics Inc. was incorporated in 2015 and is headquartered in Cambridge, Massachusetts. Foghorn Therapeutics operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 119 people.
Foghorn Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Foghorn Therapeutics. 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 Foghorn Therapeutics 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 Foghorn Therapeutics' important profitability drivers and their relationship over time.
Use Foghorn Therapeutics 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 Foghorn Therapeutics 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 Foghorn Therapeutics will appreciate offsetting losses from the drop in the long position's value.Foghorn Therapeutics Pair Trading
Foghorn Therapeutics Pair Trading Analysis
The ability to find closely correlated positions to Foghorn Therapeutics could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Foghorn Therapeutics 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 Foghorn Therapeutics - 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 Foghorn Therapeutics to buy it.
The correlation of Foghorn Therapeutics 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 Foghorn Therapeutics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Foghorn Therapeutics 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 Foghorn Therapeutics 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.Use Investing Themes to Complement your Foghorn Therapeutics position
In addition to having Foghorn Therapeutics 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.Did You Try This Idea?
Run Cash Cows Thematic Idea Now
Cash Cows
Entities with stable and reliable earnings or profits, which allows them to pay consistent dividends to their shareholders. The Cash Cows theme has 25 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 Cash Cows Theme or any other thematic opportunities.
| View All Next | Launch |
Additional Tools for Foghorn Stock Analysis
When running Foghorn Therapeutics' price analysis, check to measure Foghorn Therapeutics' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Foghorn Therapeutics is operating at the current time. Most of Foghorn Therapeutics' value examination focuses on studying past and present price action to predict the probability of Foghorn Therapeutics' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Foghorn Therapeutics' price. Additionally, you may evaluate how the addition of Foghorn Therapeutics to your portfolios can decrease your overall portfolio volatility.