ADMA BIOLOGICS INC (NASDAQ:ADMA) is not too expensive for the growth it is showing.

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.

Growth Examination for ADMA

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. ADMA scores a 7 out of 10:

• The Earnings Per Share has grown by an impressive 2900.00% over the past year.
• Looking at the last year, ADMA shows a very strong growth in Revenue. The Revenue has grown by 65.15%.
• The Revenue has been growing by 70.84% on average over the past years. This is a very strong growth!
• ADMA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.09% yearly.
• ADMA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.52% yearly.

Unpacking ADMA's Valuation Rating

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. ADMA has earned a 6 for valuation:

• ADMA's Price/Earnings ratio is rather cheap when compared to the industry. ADMA is cheaper than 93.61% of the companies in the same industry.
• Based on the Price/Forward Earnings ratio, ADMA is valued cheaper than 92.01% of the companies in the same industry.
• 93.78% of the companies in the same industry are more expensive than ADMA, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADMA indicates a rather cheap valuation: ADMA is cheaper than 93.78% of the companies listed 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.
• ADMA's earnings are expected to grow with 35.39% in the coming years. This may justify a more expensive valuation.

Analyzing Health Metrics

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 23.33. This indicates that ADMA is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of ADMA (23.33) is better than 94.85% of its industry peers.
• The Debt to FCF ratio of ADMA is 0.66, which is an excellent value as it means it would take ADMA, only 0.66 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of ADMA (0.66) is better than 95.74% of its industry peers.
• ADMA has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
• 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 5.97. This indicates that ADMA is financially healthy and has no problem in meeting its short term obligations.
• ADMA has a better Current ratio (5.97) than 63.06% of its industry peers.
• ADMA has a Quick Ratio of 2.90. This indicates that ADMA is financially healthy and has no problem in meeting its short term obligations.

Profitability Insights: ADMA

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. ADMA has earned a 6 out of 10:

• ADMA has a Return On Assets of 40.45%. This is amongst the best in the industry. ADMA outperforms 99.47% of its industry peers.
• ADMA's Return On Equity of 56.64% is amongst the best of the industry. ADMA outperforms 98.93% of its industry peers.
• With an excellent Return On Invested Capital value of 25.35%, ADMA belongs to the best of the industry, outperforming 99.47% of the companies in the same industry.
• With an excellent Profit Margin value of 46.35%, ADMA belongs to the best of the industry, outperforming 99.11% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 32.59%, ADMA belongs to the top of the industry, outperforming 98.58% of the companies in the same industry.
• ADMA's Gross Margin of 51.48% is fine compared to the rest of the industry. ADMA outperforms 76.02% of its industry peers.
• In the last couple of years the Gross Margin of ADMA has grown nicely.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Disclaimer

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.