Galapagos Gross Profit vs. Operating Margin
| GLPG Stock | EUR 25.58 0.04 0.16% |
For Galapagos profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Galapagos to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Galapagos NV utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Galapagos's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Galapagos NV over time as well as its relative position and ranking within its peers.
Galapagos |
Galapagos NV Operating Margin vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Galapagos's current stock value. Our valuation model uses many indicators to compare Galapagos value to that of its competitors to determine the firm's financial worth. Galapagos NV is one of the top stocks in gross profit category among its peers. It also 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 Galapagos' earnings, one of the primary drivers of an investment's value.Galapagos Operating Margin vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Galapagos |
| = | (8.49 M) |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
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.
Galapagos |
| = | (0.17) % |
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.
Galapagos Operating Margin Comparison
Galapagos is currently under evaluation in operating margin category among its peers.
Galapagos Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Galapagos, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Galapagos will eventually generate negative long term returns. The profitability progress is the general direction of Galapagos' change in net profit over the period of time. It can combine multiple indicators of Galapagos, 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.
Galapagos NV, a clinical-stage biotechnology company, discovers, develops, and commercializes various small molecule medicines. Galapagos NV was founded in 1999 and is headquartered in Mechelen, Belgium. GALAPAGOS operates under Biotechnology classification in Netherlands and is traded on Amsterdam Stock Exchange. It employs 1397 people.
Galapagos Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Galapagos. 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 Galapagos 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 Galapagos' important profitability drivers and their relationship over time.
Use Galapagos 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 Galapagos 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 Galapagos will appreciate offsetting losses from the drop in the long position's value.Galapagos Pair Trading
Galapagos NV Pair Trading Analysis
The ability to find closely correlated positions to Galapagos could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Galapagos 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 Galapagos - 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 Galapagos NV to buy it.
The correlation of Galapagos 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 Galapagos moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Galapagos NV 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 Galapagos 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 Galapagos position
In addition to having Galapagos 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 Stores Thematic Idea Now
Stores
Companies providing different types of retail and wholesale services. The Stores theme has 43 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 Stores Theme or any other thematic opportunities.
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Additional Tools for Galapagos Stock Analysis
When running Galapagos' price analysis, check to measure Galapagos' 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 Galapagos is operating at the current time. Most of Galapagos' value examination focuses on studying past and present price action to predict the probability of Galapagos' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Galapagos' price. Additionally, you may evaluate how the addition of Galapagos to your portfolios can decrease your overall portfolio volatility.