Supernus Story

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SUPN -- USA Stock  

USD 20.78  0.47  2.31%

As many millenniums are trying to avoid healthcare space, it makes sense to outline Supernus Pharmaceuticals a little further and try to understand its current market patterns. We will analyze why it could be a much better year for Supernus Pharmaceuticals shareholders. Is the entity valuation sustainable? Here I will cover a perspective on valuation of Supernus to give you a better outlook on taking a position in this stock.
Published over a month ago
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What is our September take on Supernus Pharmaceuticals (NASDAQ:SUPN) valuation?
The company 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. Supernus Pharmaceuticals has a current ratio of 3.24, suggesting that it is liquid enough and is able to pay its financial obligations when due. Our trade recommendation module complements current analysts and expert consensus on Supernus Pharmaceuticals. It analyzes the company potential to grow using all fundamental, technical, and market related data available at the time.
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 22.37 and as high as 23.22 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 2.27. The current volatility is consistent with the ongoing market swings in July 2020 as well as with Supernus Pharmaceuticals unsystematic, company-specific events.
 2014 2015 2019 2020 (projected)
Interest Expense5.62 M4.77 M4.29 M4.25 M
Gross Profit86.92 M139.04 M125.14 M135.02 M

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.
25.2
Profit Margin
31.37
Operating Margin
31.67
EBITDA Margin
Operating Margin31.37
EBITDA Margin31.67
Gross Margin90.2
Profit Margin25.2


Supernus Pharmaceuticals Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. The previous year's value of Supernus Pharmaceuticals Earnings Before Interest Taxes and Depreciation Amortization EBITDA was 161,918,711. Also, Supernus Pharmaceuticals Earnings Before Interest Taxes and Depreciation Amortization USD is quite stable at the moment.

Supernus Pharmaceuticals has a good chance to finish above $24 in 2 months

Latest expected short fall is at -1.86. Supernus Pharmaceuticals currently demonstrates below-verage downside deviation. It has Information Ratio of -0.1 and Jensen Alpha of -0.14. However, we do advice investors to further question Supernus Pharmaceuticals expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Bottom Line

Whereas some 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. To summarize, as of the 9th of August 2020, our primary 30 days buy-or-sell advice on the company is Strong Hold. We believe Supernus Pharmaceuticals is currently undervalued with below average odds of distress for the next two years.

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 Supernus Pharmaceuticals. Please refer to our Terms of Use for any information regarding our disclosure principles.

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