Insmed Profitability Analysis

INSM Stock  USD 26.18  0.03  0.11%   
Based on the measurements of profitability obtained from Insmed's financial statements, Insmed Inc may not be well positioned to generate adequate gross income at this time. It has a very high odds of underperforming in May. Profitability indicators assess Insmed's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
1999-03-31
Previous Quarter
-158.9 M
Current Value
-186.1 M
Quarterly Volatility
50 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of the 18th of April 2024, Price To Sales Ratio is likely to drop to 13.55. In addition to that, Days Sales Outstanding is likely to drop to 46.80. At this time, Insmed's Income Tax Expense is very stable compared to the past year. As of the 18th of April 2024, Total Other Income Expense Net is likely to grow to about 16.4 M, though Operating Income is likely to grow to (674.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.550.7852
Way Down
Slightly volatile
For Insmed profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Insmed to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Insmed Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Insmed's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Insmed Inc over time as well as its relative position and ranking within its peers.
  
Check out Risk vs Return Analysis.
Is Insmed'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 Insmed. If investors know Insmed 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 Insmed listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(5.34)
Revenue Per Share
2.173
Quarterly Revenue Growth
0.411
Return On Assets
(0.28)
Return On Equity
(14.53)
The market value of Insmed Inc is measured differently than its book value, which is the value of Insmed that is recorded on the company's balance sheet. Investors also form their own opinion of Insmed's value that differs from its market value or its book value, called intrinsic value, which is Insmed'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 Insmed's market value can be influenced by many factors that don't directly affect Insmed'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 Insmed's value and its price as these two are different measures arrived at by different means. Investors typically determine if Insmed is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Insmed'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.

Insmed Inc Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Insmed's current stock value. Our valuation model uses many indicators to compare Insmed value to that of its competitors to determine the firm's financial worth.
Insmed Inc is currently regarded as number one stock in return on equity category among related companies. It is currently regarded as number one stock in return on asset category among related companies . At this time, Insmed's Return On Equity is very stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Insmed by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Insmed'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 Insmed's earnings, one of the primary drivers of an investment's value.

Insmed Return On Asset 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.

Insmed

Return On Equity

 = 

Net Income

Total Equity

 = 
-14.53
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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Insmed

Return On Asset

 = 

Net Income

Total Assets

 = 
-0.28
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Insmed Return On Asset Comparison

Insmed is currently under evaluation in return on asset category among related companies.

Insmed Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Insmed, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Insmed will eventually generate negative long term returns. The profitability progress is the general direction of Insmed's change in net profit over the period of time. It can combine multiple indicators of Insmed, 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 Next Year
Accumulated Other Comprehensive Income-745 K-782.2 K
Operating Income-709.6 M-674.1 M
Net Loss-749.6 M-712.1 M
Income Tax Expense2.6 M2.7 M
Income Before Tax-747 M-709.7 M
Total Other Income Expense Net15.6 M16.4 M
Net Loss-433.4 M-411.7 M
Net Loss-749.6 M-712.1 M
Non Operating Income Net Other3.3 M3.4 M
Interest Income2.2 M2.1 M
Net Interest Income-81.7 M-77.6 M
Change To Netincome53.2 M28.4 M
Net Loss(5.34)(5.60)
Income Quality 0.72  0.62 
Net Income Per E B T 1.00  0.78 

Insmed Profitability Driver Comparison

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

Insmed Profitability Trends

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

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

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

Insmed Pair Trading

Insmed Inc Pair Trading Analysis

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

In addition to having Insmed 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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Broad Equity ETFs
Broad Equity ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Broad Equity ETFs theme has 470 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 Broad Equity ETFs Theme or any other thematic opportunities.
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When determining whether Insmed Inc is a strong investment it is important to analyze Insmed's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Insmed's future performance. For an informed investment choice regarding Insmed Stock, refer to the following important reports:
Check out Risk vs Return Analysis.
You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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