SUPERNUS PHARMACEUTICALS INC (NASDAQ:SUPN) Emerges as a Top Affordable Growth Stock

Investors looking for growth chances at fair prices often consider methods that find companies with good expansion possibilities without high costs. The Affordable Growth method centers on stocks showing strong growth paths, good profitability, and sound financial bases while being priced at levels that do not completely account for their future possibilities. This tactic mixes the search for high gains with careful risk control, aiming at businesses that join operational quality with appealing prices.

SUPERNUS PHARMACEUTICALS INC (NASDAQ:SUPN) appears as an interesting option under this tactic, as seen in its fundamental analysis report. The company, which creates and sells treatments for central nervous system diseases, displays a positive mix of growth factors and fair pricing, important parts of the Affordable Growth screen.

Growth Path

SUPERNUS shows clear growth traits that match the screen's focus on expansion potential. The company's earnings per share jumped 86.29% over the last year, greatly exceeding many industry counterparts. While its five-year EPS growth averages a slight 3.78%, experts predict a rise to 22.07% per year in future times, a good sign for growth-focused investors. Revenue growth also stays strong, with an 11.00% average past rise and predictions of 10.74% yearly growth going ahead. This pairing of solid past results and hopeful future estimates points to lasting expansion potential without depending on unlikely ideas.

Pricing Measures

The pricing view of SUPERNUS shows a varied but finally appealing image, especially when seen within its field:

• A Price/Earnings ratio of 14.11 looks good next to the industry average of 21.32
• Enterprise Value to EBITDA and Price/Free Cash Flow ratios both rate less expensive than about 87% of pharmaceutical industry equals
• While the Forward P/E of 20.73 seems high, it stays under the industry average and about even with the S&P 500

These measures indicate the market has not completely valued the company's growth possibility, making a chance for investors looking for fair prices.

Profitability and Financial Soundness

Beyond growth and pricing, SUPERNUS shows force in profitability and financial soundness, key pieces for lasting growth investing:

• Profitability rating of 8/10 shows very good margins (9.70% profit margin, 89.87% gross margin)
• Return on Assets (4.67%) and Return on Equity (6.06%) do better than most pharmaceutical industry rivals
• Financial soundness score of 7/10 is held up by strong liquidity ratios (Current Ratio: 2.58, Quick Ratio: 2.43) and no existing debt
• Altman-Z score of 6.48 shows low bankruptcy danger and goes beyond 82% of industry equals

These points give a firm base for continued growth without high financial danger.

Investment Points

While SUPERNUS shows an appealing outline for affordable growth hunters, investors should observe several factors. The company works in the competitive pharmaceuticals sector, where rule changes and patent ends can affect results. Also, the small drop in profit and operating margins over recent years deserves watching, though present levels stay industry-topping.

The mix of solid growth possibilities, fair pricing, strong profitability, and sound financials makes SUPERNUS worth thought for investors using Affordable Growth tactics. The company's focus on central nervous system treatments, a rising treatment area, gives more support for continued expansion.

For investors curious to research similar chances, more Affordable Growth options can be located through our specialized stock screener.

Disclaimer: This analysis is given for information reasons only and does not form investment guidance, a suggestion, or a deal to purchase or offer any securities. Investors should do their own research and talk with a skilled financial consultant before making investment choices.