ADMA BIOLOGICS INC (NASDAQ:ADMA) was identified as an affordable growth candidate by our stock screener. The company demonstrates strong growth potential while maintaining reasonable valuation metrics, along with solid financial health and profitability. Below, we break down why ADMA stands out in these key areas.
Growth Prospects
ADMA has shown impressive growth recently, particularly in earnings and revenue:
- Earnings Per Share (EPS) surged by 2,750% over the past year.
- Revenue grew 62.23% year-over-year, with a five-year average annual growth rate of 70.84%.
- Future EPS growth is projected at 28.09%, while revenue is expected to increase by 19.52% annually.
These figures indicate a company expanding rapidly in its sector, making it appealing for growth-focused investors.
Valuation
Despite its strong growth, ADMA remains reasonably valued compared to industry peers:
- The stock trades at a P/E ratio of 38.55, which is high in absolute terms but cheaper than 93.19% of its biotechnology industry peers.
- Its Price/Forward Earnings ratio of 20.58 is in line with the S&P 500 average.
- The Enterprise Value to EBITDA and Price/Free Cash Flow ratios suggest ADMA is undervalued relative to competitors.
Financial Health & Profitability
ADMA’s financial stability adds to its investment case:
- A Current Ratio of 6.58 and Quick Ratio of 3.36 indicate strong liquidity.
- The company has a low Debt-to-Equity ratio (0.19) and manageable debt levels.
- Profitability metrics are solid, with a Return on Equity of 55.37% and Operating Margin of 33.10%, outperforming most industry peers.
While profitability has been inconsistent in the past, recent improvements suggest a positive trend.
Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.
For a deeper look at ADMA’s fundamentals, review the full report here.
Disclaimer
This is not investing advice. The observations here are based on current data, but investors should conduct their own research before making decisions.
