Atea Pharmaceuticals Profitability Analysis

AVIR -  USA Stock  

USD 39.28  1.17  2.89%

For Atea Pharmaceuticals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Atea Pharmaceuticals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Atea Pharmaceuticals utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Atea Pharmaceuticals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Atea Pharmaceuticals over time as well as its relative position and ranking within its peers. Please continue to Trending Equities.

Atea Pharmaceuticals Current Profitability Trends 

 
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As of 10/17/2021, Price to Sales Ratio is likely to drop to 16.60. In addition to that, Return on Sales is likely to drop to -0.22. As of 10/17/2021, Consolidated Income is likely to drop to about (13.6 M). In addition to that, Net Income is likely to drop to about (13.6 M).
The market value of Atea Pharmaceuticals is measured differently than its book value, which is the value of Atea Pharmaceuticals that is recorded on the company's balance sheet. Investors also form their own opinion of Atea Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Atea Pharmaceuticals' 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 Atea Pharmaceuticals' market value can be influenced by many factors that don't directly affect Atea Pharmaceuticals underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Atea Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine Atea Pharmaceuticals value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Atea Pharmaceuticals' 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.

Atea Pharmaceuticals Price to Book vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Atea Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Atea Pharmaceuticals value to that of its competitors to determine the firm's financial worth.
Atea Pharmaceuticals is number one stock in operating margin category among related companies. It is rated fifth in price to book category among related companies fabricating about  0.09  of Price to Book per Operating Margin. The ratio of Operating Margin to Price to Book for Atea Pharmaceuticals is roughly  10.83 . Atea Pharmaceuticals Operating Margin is relatively stable at the moment as compared to the past year. Atea Pharmaceuticals reported last year Operating Margin of -75.66

Atea Pharmaceuticals Price to Book vs. Operating Margin

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.
Atea Pharmaceuticals 
Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
24.70 %
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.
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.
Atea Pharmaceuticals 
P/B 
 = 
MV Per Share 
BV Per Share 
2.28 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.

Atea Pharmaceuticals Price to Book Comparison

Atea Pharmaceuticals is currently under evaluation in price to book category among related companies.

Atea Pharmaceuticals Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Atea Pharmaceuticals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Atea Pharmaceuticals will eventually generate negative long term returns. The profitability progress is the general direction of Atea Pharmaceuticals' change in net profit over the period of time. It can combine multiple indicators of Atea 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.
Last ReportedProjected for 2021
Consolidated Income-12.6 M-13.6 M
Net Income-12.6 M-13.6 M
Net Income Common Stock-12.6 M-13.6 M
Operating Income-13.1 M-14.2 M
Net Income Per Employee-320.4 K-345.7 K
Atea Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focused on discovering, developing, and commercializing antiviral therapeutics for patients suffering from viral infections. The company was incorporated in 2012 and is headquartered in Boston, Massachusetts. Atea Pharmaceuticals operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs people.

Atea Pharmaceuticals Profitability Driver Comparison

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

Atea Pharmaceuticals Profitability Trends

Atea Pharmaceuticals profitability trend refers to the progression of profit or loss within a business. An upward trend means that Atea Pharmaceuticals' 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 Atea Pharmaceuticals' 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.

Atea Pharmaceuticals 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 Atea Pharmaceuticals different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Atea Pharmaceuticals 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 Atea Pharmaceuticals' future profitability.

Use Atea 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 Atea 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 Atea Pharmaceuticals will appreciate offsetting losses from the drop in the long position's value.

Atea Pharmaceuticals Pair Trading

Atea Pharmaceuticals Pair Trading Analysis

Correlation analysis and pair trading evaluation for Atea Pharmaceuticals and Mustang Bio. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
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Use Investing Themes to Complement your Atea Pharmaceuticals position

In addition to having Atea Pharmaceuticals 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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Please continue to Trending Equities. Note that the Atea Pharmaceuticals information on this page should be used as a complementary analysis to other Atea Pharmaceuticals' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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