AKRX : NASDAQ : Health Care
$33.6 | %
Today's Range: 33.58 - 33.68
Avg. Daily Volume: 3546100.0
07/21/17 - 4:00 PM ET

Financial Analysis


AKORN INC's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. AKORN INC is extremely liquid. Currently, the Quick Ratio is 3.10 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 30.57% 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.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)253.42268.35
EBITDA ($mil)95.98121.79
EBIT ($mil)75.0799.32
Net Income ($mil)41.0341.89


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)308.74145.9
Total Assets ($mil)2025.741855.85
Total Debt ($mil)811.28850.0
Equity ($mil)870.41666.59


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin61.062.97
EBITDA Margin37.8745.38
Operating Margin29.6237.01
Sales Turnover0.540.55
Return on Assets9.058.35
Return on Equity21.0623.27
Debt Q1 FY17 Q1 FY16
Current Ratio4.212.72
Debt/Capital0.480.56
Interest Expense10.8717.83
Interest Coverage6.915.57


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)124.47119.43
Div / share0.00.0
EPS0.330.34
Book value / share6.995.58
Institutional Own % n/a n/a
Avg Daily Volume3403772.02521239.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 94.57 for the Pharmaceuticals industry and a value on par with the S&P 500 average of 24.41. To use another comparison, its price-to-book ratio of 4.81 indicates a significant premium versus the S&P 500 average of 3.04 and a significant discount versus the industry average of 10.50. The price-to-sales ratio is well 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 22.88 Peers 94.57   AKRX 14.64 Peers 19.80

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 significant 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 19.00 Peers 16.42   AKRX 2.17 Peers 0.66

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 4.81 Peers 10.50   AKRX 15.74 Peers 17.64

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.

 

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

However, AKRX is expected to trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AKRX 3.80 Peers 12.74   AKRX 7.39 Peers 6.26

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 exceeds its peers.

 

 

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