Arca Biopharma Stock Return On Equity
| ABIO Stock | USD 3.25 0.04 1.25% |
ARCA Biopharma fundamentals help investors to digest information that contributes to ARCA Biopharma's financial success or failures. It also enables traders to predict the movement of ARCA Stock. The fundamental analysis module provides a way to measure ARCA Biopharma's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to ARCA Biopharma stock.
| Last Reported | Projected for Next Year | ||
| Return On Equity | (0.14) | (0.15) |
ARCA | Return On Equity |
ARCA Biopharma Company Return On Equity Analysis
ARCA Biopharma's 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.
Current ARCA Biopharma Return On Equity | -0.14 |
Most of ARCA Biopharma's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, ARCA Biopharma is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
ARCA Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for ARCA Biopharma is extremely important. It helps to project a fair market value of ARCA Stock properly, considering its historical fundamentals such as Return On Equity. Since ARCA Biopharma's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of ARCA Biopharma's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of ARCA Biopharma's interrelated accounts and indicators.
Click cells to compare fundamentals
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.
| Competition |
ARCA Total Stockholder Equity
Total Stockholder Equity |
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Based on the latest financial disclosure, ARCA Biopharma has a Return On Equity of -0.1357. This is 99.43% lower than that of the Biotechnology sector and 99.63% lower than that of the Health Care industry. The return on equity for all United States stocks is 56.23% lower than that of the firm.
ARCA Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses ARCA Biopharma's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of ARCA Biopharma could also be used in its relative valuation, which is a method of valuing ARCA Biopharma by comparing valuation metrics of similar companies.ARCA Biopharma is currently under evaluation in return on equity category among related companies.
ARCA Biopharma Current Valuation Drivers
We derive many important indicators used in calculating different scores of ARCA Biopharma from analyzing ARCA Biopharma's financial statements. These drivers represent accounts that assess ARCA Biopharma's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of ARCA Biopharma's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 7.5M | 18.9M | 29.9M | 34.2M | 24.5M | 33.6M | |
| Enterprise Value | (793.8K) | (29.8M) | (23.1M) | (8.0M) | (12.6M) | (12.0M) |
ARCA Fundamentals
| Return On Equity | -0.14 | ||||
| Return On Asset | -0.11 | ||||
| Current Valuation | 8.96 M | ||||
| Shares Outstanding | 14.5 M | ||||
| Shares Owned By Insiders | 1.20 % | ||||
| Shares Owned By Institutions | 64.45 % | ||||
| Number Of Shares Shorted | 195.73 K | ||||
| Price To Earning | (0.63) X | ||||
| Price To Book | 1.27 X | ||||
| EBITDA | (7.3 M) | ||||
| Net Income | (5.34 M) | ||||
| Cash And Equivalents | 46.44 M | ||||
| Cash Per Share | 3.22 X | ||||
| Total Debt | 280 K | ||||
| Debt To Equity | 0.01 % | ||||
| Current Ratio | 16.97 X | ||||
| Book Value Per Share | 2.55 X | ||||
| Cash Flow From Operations | (5.01 M) | ||||
| Short Ratio | 7.31 X | ||||
| Earnings Per Share | (0.37) X | ||||
| Target Price | 7.0 | ||||
| Beta | 1.21 | ||||
| Market Capitalization | 47.42 M | ||||
| Total Asset | 37.86 M | ||||
| Retained Earnings | (188.74 M) | ||||
| Working Capital | 36.95 M | ||||
| Current Asset | 5.88 M | ||||
| Current Liabilities | 26.61 M | ||||
| Net Asset | 37.86 M |
About ARCA Biopharma Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze ARCA Biopharma's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of ARCA Biopharma using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of ARCA Biopharma based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards ARCA Biopharma in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, ARCA Biopharma's short interest history, or implied volatility extrapolated from ARCA Biopharma options trading.
Pair Trading with ARCA Biopharma
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 ARCA Biopharma 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 ARCA Biopharma will appreciate offsetting losses from the drop in the long position's value.Moving against ARCA Stock
| 0.84 | JNJ | Johnson Johnson Financial Report 18th of July 2024 | PairCorr |
| 0.65 | PFE | Pfizer Inc Sell-off Trend | PairCorr |
| 0.46 | KZR | Kezar Life Sciences Financial Report 9th of May 2024 | PairCorr |
The ability to find closely correlated positions to ARCA Biopharma could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ARCA Biopharma 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 ARCA Biopharma - 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 ARCA Biopharma to buy it.
The correlation of ARCA Biopharma 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 ARCA Biopharma moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ARCA Biopharma 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 ARCA Biopharma 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.Check out ARCA Biopharma Piotroski F Score and ARCA Biopharma Altman Z Score analysis. To learn how to invest in ARCA Stock, please use our How to Invest in ARCA Biopharma guide.You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Complementary Tools for ARCA Stock analysis
When running ARCA Biopharma's price analysis, check to measure ARCA Biopharma'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 ARCA Biopharma is operating at the current time. Most of ARCA Biopharma's value examination focuses on studying past and present price action to predict the probability of ARCA Biopharma's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move ARCA Biopharma's price. Additionally, you may evaluate how the addition of ARCA Biopharma to your portfolios can decrease your overall portfolio volatility.
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Is ARCA Biopharma'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 ARCA Biopharma. If investors know ARCA 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 ARCA Biopharma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.37) | Return On Assets (0.11) | Return On Equity (0.14) |
The market value of ARCA Biopharma is measured differently than its book value, which is the value of ARCA that is recorded on the company's balance sheet. Investors also form their own opinion of ARCA Biopharma's value that differs from its market value or its book value, called intrinsic value, which is ARCA Biopharma'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 ARCA Biopharma's market value can be influenced by many factors that don't directly affect ARCA Biopharma'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 ARCA Biopharma's value and its price as these two are different measures arrived at by different means. Investors typically determine if ARCA Biopharma is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ARCA Biopharma'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.