EAGLE PHARMACEUTICALS INC (EGRX)
US2697961082 - Common Stock
We assign a fundamental rating of 4 out of 10 to EGRX. EGRX was compared to 588 industry peers in the Biotechnology industry. While EGRX has a great profitability rating, there are some minor concerns on its financial health. EGRX is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year EGRX was profitable.
In the past year EGRX has reported a negative cash flow from operations.
EGRX had positive earnings in 4 of the past 5 years.
In the past 5 years EGRX always reported a positive cash flow from operatings.
1.2 Ratios
EGRX has a better Return On Assets (2.99%) than 95.38% of its industry peers.
With an excellent Return On Equity value of 4.80%, EGRX belongs to the best of the industry, outperforming 95.56% of the companies in the same industry.
EGRX's Return On Invested Capital of 10.53% is amongst the best of the industry. EGRX outperforms 96.75% of its industry peers.
EGRX had an Average Return On Invested Capital over the past 3 years of 13.59%. This is in line with the industry average of 13.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 4.8% | ||
| ROIC | 10.53% |
ROA(3y)3.37%
ROA(5y)5.82%
ROE(3y)5.61%
ROE(5y)8.93%
ROIC(3y)13.59%
ROIC(5y)13.5%
1.3 Margins
The Profit Margin of EGRX (4.70%) is better than 95.04% of its industry peers.
In the last couple of years the Profit Margin of EGRX has declined.
EGRX has a better Operating Margin (16.47%) than 96.58% of its industry peers.
EGRX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 69.86%, EGRX belongs to the top of the industry, outperforming 84.10% of the companies in the same industry.
EGRX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.47% | ||
| PM (TTM) | 4.7% | ||
| GM | 69.86% |
OM growth 3Y42.71%
OM growth 5Y-1.58%
PM growth 3Y15.49%
PM growth 5Y-12.5%
GM growth 3Y0.54%
GM growth 5Y-1.58%
2. Health
2.1 Basic Checks
EGRX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, EGRX has more shares outstanding
Compared to 5 years ago, EGRX has less shares outstanding
Compared to 1 year ago, EGRX has a worse debt to assets ratio.
2.2 Solvency
EGRX has an Altman-Z score of 1.93. This is not the best score and indicates that EGRX is in the grey zone with still only limited risk for bankruptcy at the moment.
EGRX has a better Altman-Z score (1.93) than 70.77% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that EGRX is not too dependend on debt financing.
The Debt to Equity ratio of EGRX (0.25) is worse than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.93 |
ROIC/WACC1.6
WACC6.59%
2.3 Liquidity
EGRX has a Current Ratio of 2.16. This indicates that EGRX is financially healthy and has no problem in meeting its short term obligations.
EGRX has a worse Current ratio (2.16) than 76.24% of its industry peers.
EGRX has a Quick Ratio of 1.67. This is a normal value and indicates that EGRX is financially healthy and should not expect problems in meeting its short term obligations.
EGRX has a Quick ratio of 1.67. This is in the lower half of the industry: EGRX underperforms 78.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
The earnings per share for EGRX have decreased strongly by -33.52% in the last year.
EGRX shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.81% yearly.
Looking at the last year, EGRX shows a decrease in Revenue. The Revenue has decreased by -5.40% in the last year.
The Revenue has been growing slightly by 5.99% on average over the past years.
EPS 1Y (TTM)-33.52%
EPS 3Y44.53%
EPS 5Y14.81%
EPS growth Q2Q-24.36%
Revenue 1Y (TTM)-5.4%
Revenue growth 3Y17.35%
Revenue growth 5Y5.99%
Revenue growth Q2Q-12.82%
3.2 Future
Based on estimates for the next years, EGRX will show a very negative growth in Earnings Per Share. The EPS will decrease by -11.47% on average per year.
The Revenue is expected to grow by 0.24% on average over the next years.
EPS Next Y-40.26%
EPS Next 2Y-34.69%
EPS Next 3Y-26.94%
EPS Next 5Y-11.47%
Revenue Next Year-19.31%
Revenue Next 2Y-18.72%
Revenue Next 3Y-11.22%
Revenue Next 5Y0.24%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 1.00 indicates a rather cheap valuation of EGRX.
EGRX's Price/Earnings ratio is rather cheap when compared to the industry. EGRX is cheaper than 99.66% of the companies in the same industry.
EGRX is valuated cheaply when we compare the Price/Earnings ratio to 24.80, which is the current average of the S&P500 Index.
EGRX is valuated cheaply with a Price/Forward Earnings ratio of 1.40.
Based on the Price/Forward Earnings ratio, EGRX is valued cheaply inside the industry as 99.83% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of EGRX to the average of the S&P500 Index (21.27), we can say EGRX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1 | ||
| Fwd PE | 1.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EGRX is valued cheaper than 98.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 1.79 |
4.3 Compensation for Growth
EGRX has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as EGRX's earnings are expected to decrease with -26.94% in the coming years.
PEG (NY)N/A
PEG (5Y)0.07
EPS Next 2Y-34.69%
EPS Next 3Y-26.94%
5. Dividend
5.1 Amount
EGRX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EAGLE PHARMACEUTICALS INC
NASDAQ:EGRX (4/19/2024, 12:57:59 PM)
4.68
+0.2 (+4.46%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap60.79M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1 | ||
| Fwd PE | 1.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 4.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.47% | ||
| PM (TTM) | 4.7% | ||
| GM | 69.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-33.52%
EPS 3Y44.53%
EPS 5Y
EPS growth Q2Q
EPS Next Y-40.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.4%
Revenue growth 3Y17.35%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y