SUPERNUS PHARMACEUTICALS INC (NASDAQ:SUPN) Represents an Affordable Growth Opportunity

Investors looking for growth options at fair prices often use screening methods that find companies with good expansion prospects that have not yet become too expensive in the market. The "Affordable Growth" method looks for stocks showing solid growth features while keeping good financial condition and profit measures, all available at prices that do not completely account for their future prospects. This system helps investors prevent paying too much for growth while still finding companies set for increase.

SUPERNUS PHARMACEUTICALS INC (NASDAQ:SUPN) presents an interesting example in this investment structure. The pharmaceutical business, which works on creating and selling treatments for central nervous system conditions, shows a number of features that match affordable growth standards based on its detailed fundamental analysis report.

Growth Path

The company's growth position is notable, receiving a growth score of 7 out of 10. A few measures support this view:

• Earnings Per Share rose by 50.93% over the last year, showing notable short-term profit growth
• Income has increased at an average yearly pace of 11.00% over recent years, showing steady top-line growth
• Future estimates point to speeding growth with EPS predicted to rise by 18.47% each year and income expected to increase by 13.44% per year

This mix of good past results and speeding future growth expectations makes Supernus an interesting option for investors focused on growth. The company's varied neuroscience collection, containing treatments for ADHD, Parkinson's disease, and postpartum depression, offers several paths for continued growth.

Price Assessment

Even with its growth features, Supernus keeps fair price measures that score 6 out of 10:

• The Price/Earnings ratio of 14.82 looks good compared to both the industry average of 24.23 and the S&P 500's 27.90
• The company is priced lower than 87% of its pharmaceutical industry counterparts based on P/E multiples
• Enterprise Value to EBITDA and Price/Free Cash Flow ratios both show Supernus is valued more attractively than about 87% of industry rivals

These price measures indicate the market has not fully accounted for the company's growth possibilities, creating a chance for investors looking for fairly priced growth stocks.

Profit and Financial Condition

The affordable growth plan highlights the need for lasting operations, and Supernus provides good results in these areas:

Profit scores a notable 8 out of 10, supported by:

• Good Return on Assets of 4.67%, doing better than 88% of industry counterparts
• Excellent Gross Margin of 89.87%, placed in the top 7% of the pharmaceutical industry
• Steady profit over the past five years with positive operating cash flow the entire time

Financial Condition gets a 7 out of 10 score, featuring:

• No existing debt, offering financial flexibility and lowering risk
• Good liquidity with Current and Quick ratios of 2.58 and 2.43 respectively
• An Altman-Z score of 6.73 showing very low bankruptcy risk

These factors give confidence that the company's growth is based on a steady financial base instead of high borrowing or risky financial methods.

Investment Points

For investors using the affordable growth plan, Supernus represents the kind of chance this method aims to find. The company shows speeding growth in both earnings and income while trading at fair price multiples compared to industry counterparts. The good profit and clean balance sheet lower the risk usually connected with high-growth investments, creating a positive risk-reward situation.

The pharmaceutical industry's defensive features combined with Supernus's specific focus on central nervous system disorders provides some protection from economic cycles, while the company's set of developing treatments for CNS disorders offers extra growth possibilities beyond currently sold products.

Investors curious about finding similar affordable growth options can find more screening results through this link. The screening system continues to find companies that balance growth possibility with fair prices and good financial basics.

Disclaimer: This article presents factual information based on fundamental analysis and should not be seen as investment advice. Investors should do their own research and think about their personal financial situation before making investment choices.