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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Akorn Inc
AKRX : NASDAQ : Health Care
$34.96 0.64 | 1.86%
Today's Range: 34.51 - 35.48
Avg. Daily Volume: 992,500
07/24/14 - 2:21 PM ET

Financial Analysis


AKORN INC's gross profit margin for the first quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. AKORN INC has average liquidity. Currently, the Quick Ratio is 1.46 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 27.41% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY14 Q1 FY13
Net Sales ($mil)90.6273.85
EBITDA ($mil)30.5722.4
EBIT ($mil)23.8919.11
Net Income ($mil)9.8310.84


Balance Sheet Q1 FY14 Q1 FY13
Cash & Equiv. ($mil)45.6145.86
Total Assets ($mil)461.51382.1
Total Debt ($mil)109.83105.64
Equity ($mil)274.05215.09


Profitability Q1 FY14 Q1 FY13
Gross Profit Margin56.9155.11
EBITDA Margin33.7330.32
Operating Margin26.3725.87
Sales Turnover0.720.73
Return on Assets11.1211.28
Return on Equity18.7320.04
Debt Q1 FY14 Q1 FY13
Current Ratio2.444.14
Debt/Capital0.290.33
Interest Expense8.322.41
Interest Coverage2.877.94


Share Data Q1 FY14 Q1 FY13
Shares outstanding (mil)96.796.08
Div / share0.00.0
EPS0.080.1
Book value / share2.832.24
Institutional Own % n/a n/a
Avg Daily Volume988030.0977227.0

Valuation


BUY. AKORN INC's P/E ratio indicates a significant premium compared to an average of 27.20 for the Pharmaceuticals industry and a significant premium compared to the S&P 500 average of 19.42. For additional comparison, its price-to-book ratio of 11.77 indicates a significant premium versus the S&P 500 average of 2.68 and a significant premium versus the industry average of 7.15. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, AKORN INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AKRX 75.84 Peers 27.20   AKRX 43.72 Peers 21.98

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

AKRX is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AKRX is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AKRX 25.47 Peers 15.98   AKRX 0.91 Peers 0.58

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

AKRX is trading at a significant premium to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

AKRX trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AKRX 11.77 Peers 7.15   AKRX 12.82 Peers -15.60

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AKRX is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

AKRX is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AKRX 9.65 Peers 7.30   AKRX 20.18 Peers 17.57

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AKRX is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

AKRX has a sales growth rate that exceeds its peers.

 

 

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