Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) Passes Louis Navellier's Growth Screen

A screening method based on Louis Navellier’s growth investing principles has found a possible candidate for investors looking for companies with good fundamental momentum. Navellier’s strategy, described in his book "The Little Book That Makes You Rich," focuses on a methodical way of choosing stocks that show better growth traits. The system is made on eight important rules intended to find companies not only growing, but speeding up in their financial results. This review uses that view on Aurinia Pharmaceuticals Inc (NASDAQ:AUPH).

Following the Little Book Criteria

Aurinia Pharmaceuticals shows a clear match with a number of Navellier's main rules. The screening method looks at specific number-based measures, and AUPH's recent financial reports show important strength in these areas.

• Positive Earnings Revisions: Analyst opinion has gotten better, with EPS estimates for the next quarter being moved up by 8.11% over the past three months. This is a vital sign, as upward revisions frequently mean that analysts have gotten good news, building trust in future earnings.
• Positive Earnings Surprises: The company has a flawless history of doing better than forecasts, beating EPS estimates in all of the past four quarters by an average of almost 195%. Steady positive surprises make the market take another look at a company’s growth possibilities, a main idea of Navellier's strategy.
• Earnings Growth and Momentum: Aurinia displays very high earnings growth. Year-over-year EPS growth is at 243.3%, while the latest quarter had a very large 1500% increase compared to the same quarter the previous year. Also, this growth is getting faster, a situation Navellier names "Positive Earnings Momentum." The present quarterly growth (1500%) is much greater than the growth rate from the similar quarter a year ago (112.5%).
• Sales Growth and Expanding Margins: The company is also achieving top-line growth, with revenue increasing 25.6% over the last year and 22.4% in the most recent quarter. Importantly, this sales growth is turning into higher profitability. The operating margin has grown by over 203% in the last year, showing the company is effectively turning sales into earnings.
• Strong Cash Flow and High ROE: Free cash flow, a gauge of financial soundness and flexibility, has jumped by 329%.* The company also produces a good Return on Equity (ROE) of 18.08%, indicating it is good at making profits from shareholder money, which meets Navellier's eighth rule.

Fundamental Analysis Summary

A wider fundamental analysis of Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) gives it a total score of 6 out of 10. The analysis points out a company with very good financial condition and a high-growth profile. Profitability measures are good, with margins and returns on assets and equity rated with the top in the biotechnology field. From a value point of view, while the usual P/E ratio is close to the market average, future-looking measures and ratios like Price/Free Cash Flow indicate the stock could be priced low compared to its industry competitors, particularly when thinking about its major growth prospects. For a complete look, you can see the full fundamental analysis report.

Investment Points

For investors using a plan like Navellier's, Aurinia offers a strong case based on its number-based fundamentals. The company is achieving the main signs of speeding up sales, very high earnings, and good cash flow creation. Still, as with any biopharmaceutical company, investors need to know the natural risks linked to clinical tests, regulatory approvals, and market rivalry. The good current measures are positive, but the sector is recognized for its instability.

This analysis was created from a screen made to find stocks fitting the criteria from "The Little Book That Makes You Rich." If you want to look into other companies that currently pass this screen, you can find the live results and change the filters yourself here: View the Little Book Strategy Screen.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. All investments involve risk, including the possible loss of capital. You should conduct your own research and consult with a qualified financial professional before making any investment decisions.