During trading today, shares of Impax Laboratories Inc. (NASDAQ:$IPXL) saw a recent bid of $21.17. In total, the stock has moved 0.81% or $0.17 from open. 49,456 shares have traded hand during the session.
When looking for an investment, investors may take a look at how the industry is performing. Industries that are rapidly growing can contain stocks that might be on a similar rising trajectory. This is especially the case with industry leaders, who often have the power to influence pricing and stave off the effects of other companies in their sector. With that in mind, what can we learn about Impax?
Fundamental analysis often takes into consideration the market, industry, and stock conditions to identify if shares are trading at a fair price. Impax currently has annualized EPS of -$8.08, determined by total net income divided by shares outstanding. Simply put, this determines how profitable a company is per share.
We can also look at the Return on Assets. This ratio measures net income generated from the firm’s total company assets. It is calculated by dividing total net income by average total assets. Impax currently has an ROA of -25.21. Lower ratios tend to indicate the management’s poor ability compared to similar companies in the same sector.
Similar to ROA, Return on Invested Capital is a measure of the company’s net income compared to another factor – in this case, total capital invested. Impax’s ROIC currently sits at -32.28.
The final profitability ratio we can look at is the Return on Equity. ROE measures profits generated from investments received from shareholders. A high ROE would indicate a well-managed company at a high level, whereas a low ROE would indicate the opposite. Impax currently sits at an ROE of -55.98.
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