Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) – A Strong Candidate for Growth Investors

Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) stands out as a compelling pick for investors following Louis Navellier’s growth-focused strategy. The company meets multiple criteria outlined in The Little Book That Makes You Rich, demonstrating strong earnings momentum, revenue growth, and improving profitability. Below, we examine why AUPH aligns with these principles.

Key Strengths Based on Navellier’s Criteria

1. Positive Earnings Revisions & Surprises

   • Analysts have raised next-quarter EPS estimates by 21.7% over the past three months, signaling confidence in near-term performance.
   • AUPH has delivered four consecutive positive earnings surprises, with an average beat of 197.4%—far exceeding the 10% threshold set in the strategy.

2. Accelerating Revenue & Earnings Growth

   • Year-over-year revenue growth sits at 29.2%, while quarterly sales increased 24.2%.
   • EPS growth is even more striking, with 171.8% year-over-year expansion and a 633.3% surge in the most recent quarter.

3. Expanding Profitability

   • Operating margins improved by 154.5% over the past year, reflecting better cost efficiency alongside revenue gains.
   • Free cash flow grew 198.2%, indicating strong financial health and flexibility.

4. High Return on Equity (ROE)

   • AUPH’s ROE of 11.4% exceeds the 10% minimum required by Navellier’s strategy, showing effective use of shareholder capital.

Fundamental Snapshot

Our fundamental analysis report assigns AUPH a rating of 6/10, noting its robust growth metrics and reasonable valuation. Key takeaways:

• Profitability: Above-average margins (19.6% operating margin) but mixed historical earnings consistency.
• Valuation: Priced attractively relative to industry peers, with a forward P/E of 10.3x—cheaper than 96% of biotech firms.
• Financial Health: Strong liquidity (current ratio of 5.9x) and manageable debt levels.

For investors seeking similar opportunities, our Louis Navellier-inspired screener updates daily with high-growth candidates.

Disclaimer

This is not investment advice. While AUPH exhibits strong growth traits, always conduct your own research before making decisions.