Supernus Story

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SUPN -- USA Stock  

USD 20.31  0.11  0.54%

As many baby boomers are still indifferent towards healthcare space, it makes sense to outline Supernus Pharmaceuticals. We will evaluate if Supernus Pharmaceuticals shares are reasonably priced going into September. Is the stock valuation justified? Here we go over Supernus Pharmaceuticals perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a month ago
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Should I rely on Supernus Pharmaceuticals management in September 2020?
This firm currently holds 383.49 M in liabilities with Debt to Equity (D/E) ratio of 0.63, which is about average as compared to similar companies. The company has a current ratio of 3.24, suggesting that it is liquid enough and is able to pay its financial obligations when due. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Supernus Pharmaceuticals has an asset utilization ratio of 213.26 percent. This suggests that the company is making $2.13 for each dollar of assets. An increasing asset utilization means that Supernus Pharmaceuticals is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of Supernus 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 Supernus Pharmaceuticals based exclusively on its fundamental and basic technical indicators. By analyzing Supernus 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 Supernus 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 Supernus Pharmaceuticals. We calculate exposure to Supernus Pharmaceuticals's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Supernus Pharmaceuticals's related companies.

Supernus Pharmaceuticals Investment Alerts

Supernus 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 Supernus Pharmaceuticals performance across your portfolios.Please check all investment alerts for Supernus

Supernus Pharmaceuticals Valuation Ratios as Compared to Competition

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

How Supernus utilizes its cash?

To perform a cash flow analysis of Supernus Pharmaceuticals, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Supernus Pharmaceuticals is receiving and how much cash it distributes out in a given period. The Supernus Pharmaceuticals cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Supernus Pharmaceuticals Net Cash Flow from Operations is quite stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at 154.43 Million

Bona fide gift to Gregory Patrick of 1120 shares of Supernus Pharmaceuticals subject to Section 16

Legal trades by Supernus 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:
Supernus insider trading alert for gift of common stock by Gregory Patrick, Sr.VP Chief Financial Officer, on 28th of August 2020. This event was filed by Supernus Pharmaceuticals with SEC on 2020-08-28. 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 latest indifference towards the small price fluctuations of Supernus Pharmaceuticals created some momentum for institutional investors as it was traded today as low as 22.16 and as high as 23.46 per share. The company management teams did not add any value to Supernus Pharmaceuticals investors in July. However, most investors can still diversify their portfolios with Supernus Pharmaceuticals to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.26. The current volatility is consistent with the ongoing market swings in July 2020 as well as with Supernus Pharmaceuticals unsystematic, company-specific events.

Margins Breakdown

Supernus profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Supernus Pharmaceuticals itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Supernus Pharmaceuticals profit margins.
Profit Margin
Operating Margin
Operating Margin31.37
EBITDA Margin31.67
Gross Margin90.2
Profit Margin25.2

Supernus Pharmaceuticals Net Income Per Employee is quite stable at the moment. Moreover, Supernus Pharmaceuticals Revenue Per Employee is increasing over the last 8 years.

Does Supernus Pharmaceuticals have anything more to disclose in August?

Latest Risk Adjusted Performance is up to -0.04. Price may slide again. Supernus Pharmaceuticals exhibits very low volatility with skewness of 0.12 and kurtosis of 0.71. However, we advise investors to further study Supernus Pharmaceuticals technical indicators to make sure all market info is available and is reliable.

Our Bottom Line On Supernus Pharmaceuticals

Whereas other companies in the drug manufacturers?specialty & generic industry are either recovering or due for a correction, Supernus 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 up new shares of Supernus nor sell 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 Supernus 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 Achuva Shats do not own shares of Supernus Pharmaceuticals. Please refer to our Terms of Use for any information regarding our disclosure principles.

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