Ani Pharmaceuticals Inc (NASDAQ: ANIP)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001023024
Market Cap 1.80 Bn
P/B 3.56
P/E 46.16
P/S 2.18
ROIC (Qtr) 3.00
Div Yield % 0.00
Rev 1y % (Qtr) 53.58
Total Debt (Qtr) 620.31 Mn
Debt/Equity (Qtr) 1.23

About

ANI Pharmaceuticals, Inc., a company that operates in the pharmaceutical industry, is engaged in the development, manufacturing, and marketing of high-quality branded and generic prescription pharmaceuticals. The company is publicly traded on the NASDAQ stock exchange under the symbol ANIP. ANI's main business activities involve the production of a diverse range of pharmaceutical products, including both branded and generic options. The company operates in two primary segments: Rare Disease and Generics, Established Brands, and Other. The Rare...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 262.65M provide 17.23x coverage of short-term debt 15.24M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 155.73M exceeds capital expenditure of 14.98M by 10.39x, indicating strong organic growth funding capability.
  • Operating cash flow of 170.72M provides solid 0.63x coverage of current liabilities 270.56M, showing strong operational health.
  • Tangible assets of 845.86M provide robust 4.56x coverage of other current liabilities 185.52M, indicating strong asset backing.
  • Operating cash flow of 170.72M fully covers other non-current liabilities 26.71M by 6.39x, showing strong long-term stability.

Bear case

  • Operating cash flow of 170.72M barely covers its investment activities of (43.60M), with a coverage ratio of -3.92, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (43.60M) provide weak support for R&D spending of 56.05M, which is -0.78x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 262.65M provide limited coverage of acquisition spending of (28.61M), which is -9.18x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 170.72M shows concerning coverage of stock compensation expenses of 35.22M, with a 4.85 ratio indicating potential earnings quality issues.
  • Free cash flow of 155.73M represents just -15.42x of debt issuance (10.10M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 56.15 Bn 21.18 5.98 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 48.92 Bn 221.13 1.66 36.24 Bn
3 HLN Haleon plc 46.13 Bn 25.59 3.29 -
4 TEVA Teva Pharmaceutical Industries Ltd 35.27 Bn 49.54 2.10 17.07 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.76 Bn 17.11 6.95 0.00 Bn
6 VTRS Viatris Inc 14.87 Bn -4.03 1.05 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.08 Bn 32.91 5.25 0.43 Bn
8 ELAN Elanco Animal Health Inc 11.64 Bn 323.29 2.54 4.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.57 24.98
EV to Cash from Ops. EV/CFO 12.91 -85.40
EV to Debt EV to Debt 3.55 265.88
EV to EBIT EV/EBIT 30.53 -32.65
EV to EBITDA EV/EBITDA 16.38 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF 14.16 -32.62
EV to Market Cap EV to Market Cap 1.22 -10.98
EV to Revenue EV/Rev 2.67 -700.14
Price to Book Value [P/B] P/B 3.56 27.22
Price to Earnings [P/E] P/E 46.16 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 24.96 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.08
Interest Coverage Int. cover (Qtr) 3.33 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -474.80 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 81.11 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 523.86 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 81.91 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 634.63 37.66
EBT Growth (1y) % EBT 1y % (Qtr) 773.73 108.18
EPS Growth (1y) % EPS 1y % (Qtr) 410.91 52.88
FCF Growth (1y) % FCF 1y % (Qtr) 72.48 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 52.23 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.59 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.97 2.10
Current Ratio Curr Ratio (Qtr) 2.58 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 1.23 -1.11
Interest Cover Ratio Int Coverage (Qtr) 3.33 -38.10
Times Interest Earned Times Interest Earned (Qtr) 3.33 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 20.00 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) 8.73 -63,260.88
EBT Margin % EBT Margin % (Qtr) 6.11 -66,726.96
Gross Margin % Gross Margin % (Qtr) 61.10 8,332.72
Net Profit Margin % Net Margin % (Qtr) 4.70 -66,728.37