AKRX : NASDAQ : Health Care
$20.61 -0.26 | -1.25%
Today's Range: 20.58 - 21.0
Avg. Daily Volume: 1716600.0
01/19/17 - 4:00 PM ET

Financial Analysis


AKORN INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. AKORN INC is extremely liquid. Currently, the Quick Ratio is 2.82 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 38.57% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)284.1256.8
EBITDA ($mil)122.5122.26
EBIT ($mil)100.48100.57
Net Income ($mil)47.9147.97


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)175.19320.1
Total Assets ($mil)1960.912101.27
Total Debt ($mil)808.681077.55
Equity ($mil)810.0584.5


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin61.8765.48
EBITDA Margin43.1247.6
Operating Margin35.3739.16
Sales Turnover0.570.43
Return on Assets9.416.47
Return on Equity22.7823.26
Debt Q3 FY16 Q3 FY15
Current Ratio4.142.94
Debt/Capital0.50.65
Interest Expense11.6513.74
Interest Coverage8.637.32


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)125.23119.31
Div / share0.00.0
EPS0.380.39
Book value / share6.474.9
Institutional Own % n/a n/a
Avg Daily Volume1679390.01184976.0

Valuation


HOLD. AKORN INC's P/E ratio indicates a significant discount compared to an average of 27.12 for the Pharmaceuticals industry and a significant discount compared to the S&P 500 average of 25.49. Conducting a second comparison, its price-to-book ratio of 3.38 indicates a premium versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 65.26. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, AKORN INC proves to trade at a discount 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 14.68 Peers 27.12   AKRX 19.14 Peers 18.93

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

AKRX is trading at a significant discount to its peers.

 

Average. 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 valuation on par 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 9.68 Peers 14.42   AKRX 0.17 Peers 0.50

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

AKRX is trading at a significant discount to its peers.

 

Discount. 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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AKRX 3.38 Peers 65.26   AKRX 31.85 Peers -14.61

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

AKRX is trading at a significant discount 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 2.46 Peers 12.47   AKRX 22.60 Peers 5.05

Discount. 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 discount to its industry on this measurement.

 

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

AKRX has a sales growth rate that significantly exceeds its peers.

 

 

Latest Stock Upgrades/Downgrades