Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) Shows Strong Growth Metrics and Earnings Momentum

Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) has become an interesting candidate for growth investors using the screening method from Louis Navellier's "The Little Book That Makes You Rich." The process finds companies showing solid fundamental momentum using eight specific measures, such as earnings revisions, sales growth, margin expansion, and return numbers. This organized method intends to find companies set for faster growth before wider market awareness.

Earnings Momentum and Revisions

The pharmaceutical company shows notable strength in earnings-related measures, a key part of Navellier's process. Aurinia displays impressive upward analyst revisions, with next-quarter EPS estimates increasing 28% in the last three months. This large revision shows increasing analyst belief, which frequently comes before positive price movement. The company has reported four straight positive earnings surprises with an average beat of 194.67%, greatly surpassing the process's need for steady outperformance against expectations.

Growth Metrics and Profitability Expansion

Aurinia shows solid growth in several areas important to the screening method:

• Revenue growth of 25.59% year-over-year and 22.41% quarter-over-quarter
• EPS growth of 243.33% year-over-year and a notable 1500% quarter-over-quarter
• Operating margin expansion of 203.78% year-over-year
• Free cash flow growth of 329.13% over the past year

These numbers show the company's capacity to not only increase revenue but also turn that growth into better profitability and cash creation, meeting several rules in the screening structure.

Return Profile and Financial Health

The company attains an 18.08% return on equity, easily passing the process's minimum requirement and showing efficient use of shareholder capital. Aurinia keeps good financial health with strong liquidity (current ratio of 5.23) and acceptable debt levels, offering stability next to its growth traits.

Fundamental Assessment Summary

According to ChartMill's fundamental analysis report, Aurinia gets an overall rating of 6 out of 10, with specific strength in financial health (score of 8) and growth metrics (score of 7). The report notes the company's very good profitability ratios, solid balance sheet, and good valuation compared to industry peers. While the company displays some past variation in earnings and cash flow creation, its latest performance shows major improvement in important fundamental areas.

View the complete fundamental analysis report for detailed numbers and industry comparisons.

Investment Considerations

Aurinia's profile as a clinical-stage biopharmaceutical company focused on autoimmune disease treatments fits with the growth investing approach highlighted in Navellier's method. The company's main product, LUPKYNIS, for lupus nephritis treatment, represents a large addressable market with little competition. The partnership with Otsuka Pharmaceutical offers more validation and possible international growth chances.

The company's present valuation seems fair compared to its growth potential and industry peers, trading at a forward P/E ratio of 15.75 against the industry average of 72.04. This valuation difference, mixed with solid growth numbers, forms a notable opportunity for growth-focused investors.

For investors looking for more companies meeting these strict growth standards, explore the complete screening results based on Navellier's methodology.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with financial professionals before making investment decisions. Past performance does not guarantee future results, and investing in securities involves risk, including possible loss of principal.