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Morphic Holding ROE %

: -28.70% (As of Sep. 2021)
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ROE % is calculated as Net Income attributable to Common Stockholders (Net Income minus dividends to participating security holders) divided by its average Total Stockholders Equity over a certain period of time. Morphic Holding's annualized net income attributable to common stockholders for the quarter that ended in Sep. 2021 was $-100.16 Mil. Morphic Holding's average Total Stockholders Equity over the quarter that ended in Sep. 2021 was $349.04 Mil. Therefore, Morphic Holding's annualized ROE % for the quarter that ended in Sep. 2021 was -28.70%.

The historical rank and industry rank for Morphic Holding's ROE % or its related term are showing as below:

NAS:MORF' s ROE % Range Over the Past 10 Years
Min: -98.06   Med: -64.76   Max: -31.46
Current: -34.22

-98.06
-31.46

During the past 4 years, Morphic Holding's highest ROE % was -31.46%. The lowest was -98.06%. And the median was -64.76%.

NAS:MORF's ROE % is ranked higher than
53% of the 1329 Companies
in the Biotechnology industry.

( Industry Median: -38.41 vs. NAS:MORF: -34.22 )

Morphic Holding ROE % Historical Data

The historical data trend for Morphic Holding's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Morphic Holding Annual Data
Trend Dec17 Dec18 Dec19 Dec20
ROE %
- - -98.06 -31.46

Morphic Holding Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.47 -51.54 -33.12 -31.04 -28.70

Competitive Comparison

For the Biotechnology subindustry, Morphic Holding's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Morphic Holding ROE % Distribution

For the Biotechnology industry and Healthcare sector, Morphic Holding's ROE % distribution charts can be found below:

* The bar in red indicates where Morphic Holding's ROE % falls into.



Morphic Holding ROE % Calculation

Morphic Holding's annualized ROE % for the fiscal year that ended in Dec. 2020 is calculated as

ROE %=Net Income attributable to Common Stockholders (A: Dec. 2020 )/( (Total Stockholders Equity (A: Dec. 2019 )+Total Stockholders Equity (A: Dec. 2020 ))/ count )
=-44.999/( (140.918+145.197)/ 2 )
=-44.999/143.0575
=-31.46 %

Morphic Holding's annualized ROE % for the quarter that ended in Sep. 2021 is calculated as

ROE %=Net Income attributable to Common Stockholders (Q: Sep. 2021 )/( (Total Stockholders Equity (Q: Jun. 2021 )+Total Stockholders Equity (Q: Sep. 2021 ))/ count )
=-100.164/( (347.909+350.165)/ 2 )
=-100.164/349.037
=-28.70 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income attributable to common stockholders of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income attributable to common stockholders data used here is four times the quarterly (Sep. 2021) net income attributable to common stockholders data. ROE % is displayed in the 30-year financial page.


Morphic Holding  (NAS:MORF) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %**(Q: Sep. 2021 )
=Net Income/Total Stockholders Equity
=-100.164/349.037
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-100.164 / 12.496)*(12.496 / 439.023)*(439.023 / 349.037)
=Net Margin %*Asset Turnover*Equity Multiplier
=-801.57 %*0.0285*1.2578
=ROA %*Equity Multiplier
=-22.84 %*1.2578
=-28.70 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %**(Q: Sep. 2021 )
=Net Income/Total Stockholders Equity
=-100.164/349.037
=(Net Income /Pre-Tax Income) * (Pre-Tax Income/Operating Income) * (Operating Income/Revenue) * (Revenue/Total Assets) * (Total Assets/Total Stockholders Equity)
= (-100.164 / -100.164) * (-100.164 / -100.472) * (-100.472 / 12.496) * (12.496 / 439.023) * (439.023 / 349.037)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * 0.9969 * -804.03 % * 0.0285 * 1.2578
=-28.70 %

Note: The net income attributable to common stockholders data used here is four times the quarterly (Sep. 2021) net income attributable to common stockholders data. The Revenue data used here is four times the quarterly (Sep. 2021) revenue data. The same rule applies to Pre-Tax Income and Operating Income.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.


Be Aware

Net income attributable to common stockholders is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Morphic Holding ROE % Related Terms

Thank you for viewing the detailed overview of Morphic Holding's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Morphic Holding Business Description

Morphic Holding logo
Industry
Healthcare » Biotechnology NAICS : 325412 SIC : 2834
Traded in Other Exchanges
Address
35 Gatehouse Drive, A2, Waltham, MA, USA, 02451
Morphic Holding Inc is a biopharmaceutical company applying its insights into integrins to discover and develop a pipeline of oral small-molecule integrin therapeutics. Integrins are a target class with multiple approved injectable blockbuster drugs for the treatment of serious chronic diseases, including autoimmune, cardiovascular and metabolic diseases, fibrosis and cancer.
Executives
Farrell Robert E Jr officer: SVP Finance and CAO CAMBRIDGE DISCOVERY PARK 100 ACORN PARK DRIVE, 5TH FLOOR CAMBRIDGE MA 02140
Lugovskoy Alexey officer: Chief Development Officer C/O MORPHIC HOLDING, INC., 35 GATEHOUSE DRIVE, A2 WALTHAM MA 02451
Devaul William officer: General Counsel and Secretary C/O MORPHIC HOLDING, INC. 35 GATEHOUSE DRIVE, A2 WALTHAM MA 02451
Slattery Joseph P director C/O TRANSENTERIX, INC. 635 DAVIS DRIVE, SUITE 300 MORRISVILLE NC 27560
Nashat Amir director 10835 ROAD TO THE CURE SUITE 205 SAN DIEGO CA 92121
Stampacchia Otello director 888 BOYLSTON ST., SUITE 1111 BOSTON MA 02199
Springer Timothy A director, 10 percent owner 36 WOODMAN ROAD CHESTNUT HILL MA 02467
Christensen Gustav director DYAX CORP. 300 TECHNOLOGY SQUARE CAMBRIDGE MA 02139
Bischofberger Norbert W director 333 LAKESIDE DR C/O GILEAD SCIENCES, INC. FOSTER CITY CA 94404
Goyal Vikas director C/O SR ONE, LTD., 161 WASHINGTON ST. SUITE 500, EIGHT TOWER BRIDGE CONSHOHOCKEN PA 19428
Rogers Bruce officer: Chief Scientific Officer C/O MORPHIC HOLDING, INC. 35 GATEHOUSE DRIVE, A2 WALTHAM MA 02451
Schegerin Marc officer: CFO and COO ARQULE INC 1 WALL ST FL6 BURLINGTON MA 01803
Linde Peter officer: Chief Medical Officer C/O MORPHIC HOLDING, INC. 35 GATEHOUSE DRIVE A2 WALTHAM ME 02451
Tipirneni Praveen P. director, officer: President and CEO C/O MORPHIC HOLDING, INC., 35 GATEHOUSE DRIVE, A2 WALTHAM MA 02451
Omega Fund V Gp, L.p. 10 percent owner 888 BOYLSTON ST., SUITE 1111 BOSTON MA 02199

Morphic Holding Headlines

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