SUPERNUS PHARMACEUTICALS INC (NASDAQ:SUPN) appears to be flying under the radar despite its strong fundamentals.

Our stock screening tool has pinpointed SUPERNUS PHARMACEUTICALS INC (NASDAQ:SUPN) as an undervalued stock option. SUPN retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Evaluating Valuation: SUPN

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. SUPN has received a 7 out of 10:

• Based on the Price/Earnings ratio, SUPN is valued cheaper than 90.10% of the companies in the same industry.
• When comparing the Price/Earnings ratio of SUPN to the average of the S&P500 Index (28.90), we can say SUPN is valued rather cheaply.
• 83.33% of the companies in the same industry are more expensive than SUPN, based on the Price/Forward Earnings ratio.
• When comparing the Price/Forward Earnings ratio of SUPN to the average of the S&P500 Index (21.58), we can say SUPN is valued slightly cheaper.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SUPN indicates a rather cheap valuation: SUPN is cheaper than 94.27% of the companies listed in the same industry.
• 90.63% of the companies in the same industry are more expensive than SUPN, based on the Price/Free Cash Flow ratio.
• SUPN has an outstanding profitability rating, which may justify a higher PE ratio.

What does the Profitability looks like for SUPN

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. SUPN was assigned a score of 8 for profitability:

• SUPN's Return On Assets of 5.40% is amongst the best of the industry. SUPN outperforms 89.58% of its industry peers.
• SUPN has a better Return On Equity (7.13%) than 86.98% of its industry peers.
• SUPN has a better Return On Invested Capital (5.18%) than 81.77% of its industry peers.
• The last Return On Invested Capital (5.18%) for SUPN is above the 3 year average (2.70%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 11.16%, SUPN belongs to the top of the industry, outperforming 86.98% of the companies in the same industry.
• SUPN has a better Operating Margin (13.68%) than 83.33% of its industry peers.
• Looking at the Gross Margin, with a value of 89.57%, SUPN belongs to the top of the industry, outperforming 92.19% of the companies in the same industry.

Exploring SUPN's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. SUPN has achieved a 7 out of 10:

• An Altman-Z score of 4.75 indicates that SUPN is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 4.75, SUPN belongs to the best of the industry, outperforming 80.73% of the companies in the same industry.
• There is no outstanding debt for SUPN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• A Current Ratio of 2.35 indicates that SUPN has no problem at all paying its short term obligations.
• A Quick Ratio of 2.16 indicates that SUPN has no problem at all paying its short term obligations.

Evaluating Growth: SUPN

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. SUPN scores a 6 out of 10:

• The Earnings Per Share has grown by an impressive 81.43% over the past year.
• The Revenue has grown by 8.92% in the past year. This is quite good.
• SUPN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.00% yearly.
• Based on estimates for the next years, SUPN will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.96% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of SUPN contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.