Amarin PLC Profitability Analysis

AMRN Stock  USD 0.89  0.02  2.30%   
Based on the measurements of profitability obtained from Amarin PLC's financial statements, Amarin PLC may not be well positioned to generate adequate gross income at this time. It has a very high odds of underperforming in April. Profitability indicators assess Amarin PLC's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
1993-03-31
Previous Quarter
-19.3 M
Current Value
-5.8 M
Quarterly Volatility
30.8 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Amarin PLC's Operating Cash Flow Sales Ratio is very stable compared to the past year. As of the 28th of March 2024, Days Of Sales Outstanding is likely to grow to 260.89, while Price To Sales Ratio is likely to drop 1.09. At this time, Amarin PLC's Income Tax Expense is very stable compared to the past year. As of the 28th of March 2024, Interest Income is likely to grow to about 10.5 M, though Accumulated Other Comprehensive Income is likely to grow to (871.2 K).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.740.6575
Moderately Up
Slightly volatile
For Amarin PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Amarin PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Amarin PLC utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Amarin PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Amarin PLC over time as well as its relative position and ranking within its peers.
  
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To learn how to invest in Amarin Stock, please use our How to Invest in Amarin PLC guide.
Is Amarin PLC's industry 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 Amarin PLC. If investors know Amarin 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 Amarin PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.94)
Earnings Share
(0.15)
Revenue Per Share
0.753
Quarterly Revenue Growth
(0.17)
Return On Assets
(0.01)
The market value of Amarin PLC is measured differently than its book value, which is the value of Amarin that is recorded on the company's balance sheet. Investors also form their own opinion of Amarin PLC's value that differs from its market value or its book value, called intrinsic value, which is Amarin PLC'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 Amarin PLC's market value can be influenced by many factors that don't directly affect Amarin PLC'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 Amarin PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Amarin PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Amarin PLC'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.

Amarin PLC Price To Book vs. Short Ratio Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Amarin PLC's current stock value. Our valuation model uses many indicators to compare Amarin PLC value to that of its competitors to determine the firm's financial worth.
Amarin PLC is number one stock in short ratio category among related companies. It is rated fifth in price to book category among related companies fabricating about  0.07  of Price To Book per Short Ratio. The ratio of Short Ratio to Price To Book for Amarin PLC is roughly  15.01 . As of the 28th of March 2024, Price To Book Ratio is likely to grow to 0.67. Comparative valuation analysis is a catch-all model that can be used if you cannot value Amarin PLC by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Amarin PLC's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. 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 Amarin PLC's earnings, one of the primary drivers of an investment's value.

Amarin Price To Book vs. Short Ratio

Short Ratio is typically used by traders and speculators to identify trends in current market sentiment for a particular equity instrument. In its simple terms this ratio shows how many days it will take all current short sellers to cover their positions if the price of a stock begins to rise.

Amarin PLC

Short Ratio

 = 

Short Interest

Average Trading Volume

 = 
9.45 X
The higher the Short Ratio, the longer it would take to buy back the borrowed shares. In theory, the more short positions are currently outstanding, the faster it will be to cover shorted positions.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Amarin PLC

P/B

 = 

MV Per Share

BV Per Share

 = 
0.63 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

Amarin Price To Book Comparison

Amarin PLC is currently under evaluation in price to book category among related companies.

Amarin PLC Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Amarin PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Amarin PLC will eventually generate negative long term returns. The profitability progress is the general direction of Amarin PLC's change in net profit over the period of time. It can combine multiple indicators of Amarin PLC, 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 2024
Accumulated Other Comprehensive Income-917.1 K-871.2 K
Operating Income-17.5 M-18.3 M
Income Before Tax-53.9 M-56.6 M
Total Other Income Expense Net-36.4 M-34.6 M
Net Loss-59.3 M-62.3 M
Income Tax Expense5.5 M5.7 M
Net Loss-121.7 M-127.8 M
Net Loss-52.5 M-55.1 M
Interest Income10 M10.5 M
Net Interest Income10 M10.5 M
Change To Netincome30.7 M32.2 M
Net Income Per E B T 1.10  0.66 

Amarin Profitability Driver Comparison

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

Amarin PLC Profitability Trends

Amarin PLC profitability trend refers to the progression of profit or loss within a business. An upward trend means that Amarin PLC's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Amarin PLC's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Amarin PLC Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Amarin PLC different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Amarin PLC in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Amarin PLC's future profitability.

Use Amarin PLC 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 Amarin PLC 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 Amarin PLC will appreciate offsetting losses from the drop in the long position's value.

Amarin PLC Pair Trading

Amarin PLC Pair Trading Analysis

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

In addition to having Amarin PLC 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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Large Value Funds
Large Value Funds Theme
Funds or Etfs that invest in the undervalued stocks of large-sized companies. The Large Value Funds theme has 39 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 Large Value Funds Theme or any other thematic opportunities.
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When determining whether Amarin PLC offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Amarin PLC'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 Amarin Plc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Amarin Plc Stock:
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To learn how to invest in Amarin Stock, please use our How to Invest in Amarin PLC guide.
You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

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When running Amarin PLC's price analysis, check to measure Amarin PLC's 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 Amarin PLC is operating at the current time. Most of Amarin PLC's value examination focuses on studying past and present price action to predict the probability of Amarin PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Amarin PLC's price. Additionally, you may evaluate how the addition of Amarin PLC to your portfolios can decrease your overall portfolio volatility.
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To fully project Amarin PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Amarin PLC 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 Amarin PLC's income statement, its balance sheet, and the statement of cash flows.
Potential Amarin PLC investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Amarin PLC investors may work on each financial statement separately, they are all related. The changes in Amarin PLC's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Amarin PLC'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.