ADMA BIOLOGICS INC (NASDAQ:ADMA) is showing good growth, while it is not too expensive.

Take a closer look at ADMA BIOLOGICS INC (NASDAQ:ADMA), an affordable growth stock uncovered by our stock screener. ADMA boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Deciphering ADMA's Growth Rating

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. ADMA has achieved a 7 out of 10:

• ADMA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 484.62%, which is quite impressive.
• Looking at the last year, ADMA shows a very strong growth in Revenue. The Revenue has grown by 65.16%.
• ADMA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 70.84% yearly.
• ADMA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.09% yearly.
• The Revenue is expected to grow by 19.52% on average over the next years. This is quite good.

Assessing Valuation Metrics for ADMA

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. ADMA was assigned a score of 6 for valuation:

• Based on the Price/Earnings ratio, ADMA is valued cheaply inside the industry as 94.04% of the companies are valued more expensively.
• Based on the Price/Forward Earnings ratio, ADMA is valued cheaply inside the industry as 92.98% of the companies are valued more expensively.
• Based on the Enterprise Value to EBITDA ratio, ADMA is valued cheaper than 94.04% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, ADMA is valued cheaper than 93.51% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• ADMA has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as ADMA's earnings are expected to grow with 33.13% in the coming years.

How We Gauge Health for ADMA

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. ADMA has received a 8 out of 10:

• ADMA has an Altman-Z score of 19.72. This indicates that ADMA is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 19.72, ADMA belongs to the top of the industry, outperforming 93.86% of the companies in the same industry.
• The Debt to FCF ratio of ADMA is 1.29, which is an excellent value as it means it would take ADMA, only 1.29 years of fcf income to pay off all of its debts.
• ADMA has a Debt to FCF ratio of 1.29. This is amongst the best in the industry. ADMA outperforms 95.26% of its industry peers.
• A Debt/Equity ratio of 0.44 indicates that ADMA is not too dependend on debt financing.
• Although ADMA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
• ADMA has a Current Ratio of 7.09. This indicates that ADMA is financially healthy and has no problem in meeting its short term obligations.
• ADMA has a better Current ratio (7.09) than 68.95% of its industry peers.
• ADMA has a Quick Ratio of 3.26. This indicates that ADMA is financially healthy and has no problem in meeting its short term obligations.

A Closer Look at Profitability for ADMA

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. ADMA was assigned a score of 6 for profitability:

• ADMA's Return On Assets of 17.44% is amongst the best of the industry. ADMA outperforms 97.89% of its industry peers.
• With an excellent Return On Equity value of 29.38%, ADMA belongs to the best of the industry, outperforming 98.25% of the companies in the same industry.
• The Return On Invested Capital of ADMA (26.25%) is better than 99.30% of its industry peers.
• ADMA has a Profit Margin of 17.80%. This is amongst the best in the industry. ADMA outperforms 96.32% of its industry peers.
• With an excellent Operating Margin value of 30.01%, ADMA belongs to the best of the industry, outperforming 98.42% of the companies in the same industry.
• With a decent Gross Margin value of 48.93%, ADMA is doing good in the industry, outperforming 77.02% of the companies in the same industry.
• ADMA's Gross Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of ADMA for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.