Eagle Story

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EGRX -- USA Stock  

USD 42.85  0.23  0.54%

As many of us are excited about healthcare space, it is fair to break down Eagle Pharmaceuticals. We will analyze why Eagle Pharmaceuticals investors may still consider a stake in the business. Is Eagle Pharmaceuticals valuation justified? Here I will cover 2021 perspective on the current valuation of the entity to give you a better outlook on taking a possible position in this stock.
Published over a month ago
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Is Eagle Pharmaceuticals well positioned for April economic uncertainties?
This firm currently holds 38.98 M in liabilities with Debt to Equity (D/E) ratio of 0.23, which may suggest the firm is not taking enough advantage from borrowing. Eagle Pharmaceuticals is OVERVALUED at 43.27 per share with modest projections ahead.
We determine the current worth of Eagle Pharmaceuticals using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Eagle Pharmaceuticals based exclusively on its fundamental and basic technical indicators. By analyzing Eagle Pharmaceuticals's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Eagle Pharmaceuticals's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Eagle Pharmaceuticals. We calculate exposure to Eagle Pharmaceuticals's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Eagle Pharmaceuticals's related companies.

Eagle Pharmaceuticals Investment Alerts

Eagle investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Eagle Pharmaceuticals performance across your portfolios.Please check all investment alerts for Eagle

Eagle Pharmaceuticals Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Eagle value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Eagle Pharmaceuticals competition to find correlations between indicators driving the intrinsic value of Eagle.

How Eagle utilizes its cash?

To perform a cash flow analysis of Eagle Pharmaceuticals, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Eagle Pharmaceuticals is receiving and how much cash it distributes out in a given period. The Eagle Pharmaceuticals cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Eagle Pharmaceuticals Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Eagle Pharmaceuticals reported Net Cash Flow from Operations of 49.5 Million in 2020

Exercise or conversion by Steven Ratoff of 2340 shares of Eagle Pharmaceuticals subject to Rule 16b-3

Legal trades by Eagle Pharmaceuticals insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Eagle insider trading alert for exercise of stock option (right to buy) by Steven Ratoff, the corporate stakeholder, on 12th of April 2021. This event was filed by Eagle Pharmaceuticals Inc with SEC on 2021-04-12. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Perspective

The small slide in market price for the last few months could raise concerns from investors as the firm it trading at a share price of 40.40 on 185,497 in volume. The company management teams did not add much value to Eagle Pharmaceuticals investors in February. However, diversifying your holdings with Eagle Pharmaceuticals or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.19. The current volatility is consistent with the ongoing market swings in February 2021 as well as with Eagle Pharmaceuticals unsystematic, company-specific events.

Margins Breakdown

Eagle profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Eagle Pharmaceuticals itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Eagle Pharmaceuticals profit margins.
Operating Margin10.81
EBITDA Margin0.18
Gross Margin0.72
Profit Margin0.0905


Eagle Pharmaceuticals Revenue Per Employee is increasing over the last 8 years. Moreover, Eagle Pharmaceuticals Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. The previous year's value of Eagle Pharmaceuticals Earnings Before Interest Taxes and Depreciation Amortization USD was 29,322,184.

Will Eagle Pharmaceuticals spontaneously start a collapse?

Current Jensen Alpha is up to -0.07. Price may slide again.
As of the 2nd of March, Eagle Pharmaceuticals shows the mean deviation of 1.61, and Coefficient Of Variation of (4,139). Eagle Pharmaceuticals technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Eagle Pharmaceuticals, which can be compared to its rivals. Please confirm Eagle Pharmaceuticals mean deviation, information ratio, as well as the relationship between the Information Ratio and downside variance to decide if Eagle Pharmaceuticals is priced favorably, providing market reflects its regular price of 40.4 per share. Given that Eagle Pharmaceuticals has jensen alpha of (0.07), we urge you to verify Eagle Pharmaceuticals's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Eagle Pharmaceuticals

While other companies in the drug manufacturers?specialty & generic industry are either recovering or due for a correction, Eagle may not be as strong as the others in terms of longer-term growth potentials. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither take in new shares of Eagle nor trade your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Eagle Pharmaceuticals.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Eagle Pharmaceuticals. Please refer to our Terms of Use for any information regarding our disclosure principles.

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