Axcella Health Return On Asset vs. Book Value Per Share

AXLA
 Stock
  

USD 0.93  0.06  6.90%   

For Axcella Health profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Axcella Health to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Axcella Health utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Axcella Health's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Axcella Health over time as well as its relative position and ranking within its peers. Please continue to Trending Equities.
  
Is Axcella Health'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 Axcella Health. If investors know Axcella 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 Axcella Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
64 M
Return On Assets
(0.92) 
Return On Equity
(5.43) 
The market value of Axcella Health is measured differently than its book value, which is the value of Axcella that is recorded on the company's balance sheet. Investors also form their own opinion of Axcella Health's value that differs from its market value or its book value, called intrinsic value, which is Axcella Health'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 Axcella Health's market value can be influenced by many factors that don't directly affect Axcella Health'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 Axcella Health's value and its price as these two are different measures arrived at by different means. Investors typically determine Axcella Health value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Axcella Health'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.

Axcella Health Book Value Per Share vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Axcella Health's current stock value. Our valuation model uses many indicators to compare Axcella Health value to that of its competitors to determine the firm's financial worth.
Axcella Health is rated third in return on asset category among related companies. It is rated third in book value per share category among related companies . . Comparative valuation analysis is a catch-all model that can be used if you cannot value Axcella Health by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Axcella Health'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 Axcella Health's earnings, one of the primary drivers of an investment's value.

Axcella Book Value Per Share vs. Return On Asset

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.
Axcella Health 
Return on Asset 
 = 
Net Income 
Total Assets 
X
100 
(67.56) %
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.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.
Axcella Health 
Book Value per Share 
 = 
Common Equity 
Average Shares 
2.01 X
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.

Axcella Book Value Per Share Comparison

Axcella Health is currently under evaluation in book value per share category among related companies.

Axcella Health Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Axcella Health, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Axcella Health will eventually generate negative long term returns. The profitability progress is the general direction of Axcella Health's change in net profit over the period of time. It can combine multiple indicators of Axcella Health, 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.
Axcella Health Inc. operates as a clinical stage biotechnology company in the United States. Axcella Health Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts. Axcella Health operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 59 people.

Axcella Profitability Driver Comparison

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

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

Axcella Health Pair Trading

Axcella Health Pair Trading Analysis

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

In addition to having Axcella Health 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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Commodities
Commodities Theme
Funds or Etfs investing in commodities such as oil, gold, corn, soy, and agricultural goods. The Commodities theme has 40 constituents at this time.
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Please continue to Trending Equities. You can also try Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.

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