AKRX : NASDAQ : Health Care
$25.0 up 0.23 | 0.93%
Today's Range: 24.6 - 25.115
Avg. Daily Volume: 1708500.0
03/29/17 - 10:45 AM ET

Financial Analysis


AKORN INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged 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 2.76 which clearly shows the ability to cover any short-term cash needs. AKRX managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 31.79% 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.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)283.67279.98
EBITDA ($mil)121.24130.11
EBIT ($mil)99.28107.55
Net Income ($mil)32.4632.79


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)201.88352.21
Total Assets ($mil)1973.722112.71
Total Debt ($mil)809.981074.4
Equity ($mil)819.18621.57


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin61.6764.26
EBITDA Margin42.7446.47
Operating Margin35.038.41
Sales Turnover0.570.47
Return on Assets9.337.13
Return on Equity22.4924.26
Debt Q4 FY16 Q4 FY15
Current Ratio3.913.24
Debt/Capital0.50.63
Interest Expense11.4113.78
Interest Coverage8.77.8


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)124.39119.43
Div / share0.00.0
EPS0.260.27
Book value / share6.595.2
Institutional Own % n/a n/a
Avg Daily Volume1650563.01603993.0

Valuation


HOLD. AKORN INC's P/E ratio indicates a significant discount compared to an average of 45.92 for the Pharmaceuticals industry and a significant discount compared to the S&P 500 average of 26.33. Conducting a second comparison, its price-to-book ratio of 3.39 indicates a premium versus the S&P 500 average of 2.93 and a significant discount versus the industry average of 12.52. 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 15.07 Peers 45.92   AKRX 16.54 Peers 18.88

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.

 

Discount. 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 discount 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 12.67 Peers 14.67   AKRX 1.48 Peers 1.21

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

AKRX is trading at a valuation on par with 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AKRX 3.39 Peers 12.52   AKRX 19.35 Peers -2.47

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 2.48 Peers 14.79   AKRX 13.37 Peers 4.55

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.

 

 

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