SUPERNUS PHARMACEUTICALS INC (NASDAQ:SUPN) is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Consider SUPERNUS PHARMACEUTICALS INC (NASDAQ:SUPN) as a top value stock, identified by our stock screening tool. SUPN shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

Understanding SUPN's Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. SUPN was assigned a score of 7 for valuation:

• The Price/Earnings ratio is 11.93, which indicates a very decent valuation of SUPN.
• Based on the Price/Earnings ratio, SUPN is valued cheaper than 88.38% of the companies in the same industry.
• SUPN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.63.
• Based on the Price/Forward Earnings ratio, SUPN is valued cheaper than 83.33% of the companies in the same industry.
• SUPN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.85, which is the current average of the S&P500 Index.
• Based on the Enterprise Value to EBITDA ratio, SUPN is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
• SUPN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SUPN is cheaper than 90.91% of the companies in the same industry.
• The excellent profitability rating of SUPN may justify a higher PE ratio.

Profitability Insights: 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:

• The Return On Assets of SUPN (5.40%) is better than 90.40% of its industry peers.
• Looking at the Return On Equity, with a value of 7.13%, SUPN belongs to the top of the industry, outperforming 86.87% of the companies in the same industry.
• The Return On Invested Capital of SUPN (5.18%) is better than 82.32% 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.
• SUPN has a Profit Margin of 11.16%. This is amongst the best in the industry. SUPN outperforms 87.88% of its industry peers.
• SUPN has a Operating Margin of 13.68%. This is amongst the best in the industry. SUPN outperforms 83.33% of its industry peers.
• SUPN's Gross Margin of 89.57% is amongst the best of the industry. SUPN outperforms 90.40% of its industry peers.

Evaluating Health: SUPN

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:

• SUPN has an Altman-Z score of 4.67. This indicates that SUPN is financially healthy and has little risk of bankruptcy at the moment.
• SUPN's Altman-Z score of 4.67 is amongst the best of the industry. SUPN outperforms 81.82% of its industry peers.
• SUPN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.

Growth Assessment of 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:

• SUPN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 81.43%, which is quite impressive.
• The Revenue has grown by 8.92% in the past year. This is quite good.
• The Revenue has been growing by 11.00% on average over the past years. This is quite good.
• SUPN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.19% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of SUPN

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.