PTC THERAPEUTICS INC (NASDAQ:PTCT) Presents an Affordable Growth Opportunity

Investors looking for growth chances at fair prices often use screening methods that find companies showing good expansion possibility without high costs. The "Affordable Growth" method looks for stocks with good growth paths, strong basic business foundations, and prices that seem acceptable. This system mixes the search for expansion with careful risk control, concentrating on companies that join increasing sales or profits with acceptable price measures and money steadiness.

PTC THERAPEUTICS INC (NASDAQ:PTCT) shows an interesting example inside this investment structure. The biopharmaceutical company focuses on creating treatments for uncommon diseases, with a treatment collection for problems such as Duchenne muscular dystrophy and aromatic L-amino acid decarboxylase deficiency.

Growth Path Check

The company's growth picture is especially notable, getting a growth score of 7 out of 10 in the fundamental analysis report. Recent results show big expansion in important measures:

• Revenue jumped 96% over the last year, showing good sales action
• Earnings per share grew by 226.85% each year, showing better money gains
• Past revenue growth averages 21.32% yearly over several years
• Future guesses point to 16.08% yearly revenue growth and 18.99% EPS growth

This growth picture fits well with the affordable growth method's focus on companies showing big expansion possibility. The mix of strong past growth and good future guesses suggests PTC Therapeutics keeps speed in selling its rare disease treatments.

Price Thoughts

PTC Therapeutics' price measures show an appealing view next to both industry friends and wider market guides. The company gets a price score of 6 out of 10, showing fair cost even with its growth features:

• P/E ratio of 11.71 looks good next to industry average of 63.37
• Enterprise Value to EBITDA ratio sits lower than 98.31% of biotechnology friends
• Price/Free Cash Flow ratio puts the company in the lowest cost 1.12% of the industry
• Next to the S&P 500's average P/E of 26.91, PTCT seems much lower priced

The price check is key to the affordable growth method because it makes sure investors do not pay too much for growth possibility. PTC Therapeutics' fair numbers suggest the market might not completely value the company's growth path or has included big risk points.

Money Strength and Earnings

While the company's best points are in growth and price, its money strength and earnings scores of 6 and 5 show enough but not special results in these parts. The strength check shows both good and worry points:

• Current ratio of 3.62 shows strong short-term cash availability
• Debt to free cash flow ratio of 3.44 years points to acceptable debt load
• Altman-Z score of 2.13 puts the company in a "middle area" for closing danger
• Share number has grown over recent years, possibly lowering value for current owners

Earnings measures show high profit differences but changing past performance:

• Operating margin of 49.70% does better than 99.44% of industry friends
• Profit margin of 35.65% beats 96.82% of biotechnology companies
• Return on invested capital of 34.54% sits in the top group
• The company has shown negative net income and operating cash flow in four of the last five years

These mixed results in strength and earnings show the importance of the affordable growth screen's need for "acceptable" instead of special scores in these groups. While not perfect, PTC Therapeutics shows enough money steadiness and strong current earnings to back its growth path.

Investment Points

The mix of strong growth, fair price, and enough supporting basics makes PTC Therapeutics worth a look for investors using an affordable growth method. The company's specific focus on rare diseases gives some safety from competition, while its market products show big sales expansion. The price difference between its growth speed and trading numbers shows a possible chance if the company can keep its path.

Investors should know that the biotechnology field holds natural dangers linked to research work, government approvals, and payment situations. The company's past changes in making positive earnings and cash flow, even with recent betterments, needs close watching.

For investors wanting to find like chances, more affordable growth picks can be found using the set screening method.

Disclaimer: This study is based on basic information and scores given by ChartMill.com and is for learning reasons only. It does not make investment guidance, nor does it suggest buying or selling any security. Investors should do their own study and talk with money helpers before making investment choices. Past results do not promise future results, and all investments hold risk including possible loss of original money.