Newron Pharmaceuticals Return On Equity vs. Operating Margin
| NWRN Stock | CHF 8.82 0.33 3.89% |
For Newron Pharmaceuticals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Newron Pharmaceuticals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Newron Pharmaceuticals SpA utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Newron Pharmaceuticals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Newron Pharmaceuticals SpA over time as well as its relative position and ranking within its peers.
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Newron Pharmaceuticals Operating Margin vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Newron Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Newron Pharmaceuticals value to that of its competitors to determine the firm's financial worth. Newron Pharmaceuticals SpA is considered to be number one stock in return on equity category among its peers. It is regarded third 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 Newron Pharmaceuticals' earnings, one of the primary drivers of an investment's value.Newron 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.
Newron Pharmaceuticals |
| = | -8.4 |
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.
Newron Pharmaceuticals |
| = | (1.84) % |
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.
Newron Operating Margin Comparison
Newron Pharmaceuticals is currently under evaluation in operating margin category among its peers.
Newron Pharmaceuticals Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Newron Pharmaceuticals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Newron Pharmaceuticals will eventually generate negative long term returns. The profitability progress is the general direction of Newron Pharmaceuticals' change in net profit over the period of time. It can combine multiple indicators of Newron 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.
Newron Pharmaceuticals S.p.A., a clinical stage biopharmaceutical company, focuses on the research and development, manufacture, and distribution of therapies for the treatment of central and peripheral nervous system in Italy and internationally. The company was founded in 1998 and is headquartered in Bresso, Italy. NEWRON PHARMA operates under Biotechnology classification in Switzerland and is traded on Switzerland Exchange. It employs 24 people.
Newron Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Newron 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 Newron 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 Newron Pharmaceuticals' important profitability drivers and their relationship over time.
Use Newron 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 Newron 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 Newron Pharmaceuticals will appreciate offsetting losses from the drop in the long position's value.Newron Pharmaceuticals Pair Trading
Newron Pharmaceuticals SpA Pair Trading Analysis
The ability to find closely correlated positions to Newron 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 Newron 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 Newron 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 Newron Pharmaceuticals SpA to buy it.
The correlation of Newron 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 Newron Pharmaceuticals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Newron 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 Newron 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.Use Investing Themes to Complement your Newron Pharmaceuticals position
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Additional Tools for Newron Stock Analysis
When running Newron Pharmaceuticals' price analysis, check to measure Newron Pharmaceuticals' 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 Newron Pharmaceuticals is operating at the current time. Most of Newron Pharmaceuticals' value examination focuses on studying past and present price action to predict the probability of Newron Pharmaceuticals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Newron Pharmaceuticals' price. Additionally, you may evaluate how the addition of Newron Pharmaceuticals to your portfolios can decrease your overall portfolio volatility.