Supernus Pharmaceuticals, Inc. (NASDAQ: SUPN)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001356576
Market Cap 2.88 Bn
P/B 2.74
P/E -150.61
P/S 4.22
ROIC (Qtr) -2.08
Div Yield % 0.00
Rev 1y % (Qtr) 9.34
Total Debt (Qtr) 31.42 Mn
Debt/Equity (Qtr) 0.03

About

Supernus Pharmaceuticals, Inc. (SUPN) is a company that operates in the pharmaceutical industry, specializing in the development and commercialization of products for the treatment of central nervous system (CNS) diseases. The industry is highly competitive and rapidly changing, and Supernus Pharmaceuticals is committed to staying at the forefront through its main business activities, which include the development and commercialization of novel CNS product candidates, as well as the marketing and sales of its approved products. The company generates...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 71.88M provides robust 2.29x coverage of total debt 31.42M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 677.19M provides 21.55x coverage of total debt 31.42M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 70.75M exceeds capital expenditure of 1.12M by 62.95x, indicating strong organic growth funding capability.
  • Retained earnings of 521.98M provide full 16.61x coverage of long-term debt 31.42M, indicating strong internal capital position.
  • Operating cash flow of 71.88M fully covers other non-current liabilities 8.04M by 8.94x, showing strong long-term stability.

Bear case

  • Investment activities of 42.78M provide weak support for R&D spending of 107.06M, which is 0.40x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 152.82M provide limited coverage of acquisition spending of (293.09M), which is -0.52x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 171.25M relative to inventory of 79.40M (2.16 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 71.88M shows concerning coverage of stock compensation expenses of 31.03M, with a 2.32 ratio indicating potential earnings quality issues.
  • Operating cash flow of 71.88M provides minimal -44.45x coverage of tax expenses of (1.62M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

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 1.94 24.98
EV to Cash from Ops. EV/CFO 38.38 -85.40
EV to Debt EV to Debt 87.80 265.88
EV to EBIT EV/EBIT -133.06 -32.65
EV to EBITDA EV/EBITDA 48.86 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF 38.99 -32.62
EV to Market Cap EV to Market Cap 0.96 -10.98
EV to Revenue EV/Rev 4.05 -700.14
Price to Book Value [P/B] P/B 2.74 27.22
Price to Earnings [P/E] P/E -150.61 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 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) 0.00 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -136.13 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 382.50 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -132.02 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -58.43 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -128.61 37.66
EBT Growth (1y) % EBT 1y % (Qtr) -128.61 108.18
EPS Growth (1y) % EPS 1y % (Qtr) -130.56 52.88
FCF Growth (1y) % FCF 1y % (Qtr) -58.87 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 4.02 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.48 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.46 2.10
Current Ratio Curr Ratio (Qtr) 1.80 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 -1.11
Interest Cover Ratio Int Coverage (Qtr) 0.00 -38.10
Times Interest Earned Times Interest Earned (Qtr) 0.00 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.50 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) -3.04 -63,260.88
EBT Margin % EBT Margin % (Qtr) -3.04 -66,726.96
Gross Margin % Gross Margin % (Qtr) 88.60 8,332.72
Net Profit Margin % Net Margin % (Qtr) -2.80 -66,728.37