Assertio moved -7.0% Friday and is now trading at a price of $5.72.
Assertio returned gains of 97.9% last year, with its stock price reaching a high of $8.01 and a low of $2.07. Over the same period, the stock outperformed the S&P 500 index by 86.0%. More recently, the company's 50-day average price was $6.3. Assertio Holdings, Inc., a commercial pharmaceutical company, provides medicines in the areas of neurology, rheumatology, and pain and inflammation. Based in Lake Forest, IL, the small-cap Health Care company has 30 full time employees. Assertio has not offered a dividend during the last year.
The Company's Revenues Are Declining:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (k) | $229,504 | $106,275 | $111,014 | $156,234 |
| Operating Margins | -0.3% | -44.2% | 9.5% | 37.2% |
| Net Margins | -94.64% | -26.48% | -1.15% | 70.17% |
| Net Income (k) | -$217,201 | -$28,144 | -$1,281 | $109,625 |
| Net Interest Expense (k) | -$58,389 | -$15,926 | -$10,220 | -$7,961 |
| Depreciation & Amort. (k) | -$101,774 | -$24,783 | -$29,077 | -$33,396 |
| Earnings Per Share | -$12.28 | -$1.08 | -$0.03 | $1.59 |
| EPS Growth | n/a | 91.21% | 97.22% | 5400.0% |
| Diluted Shares (k) | 17,679 | 26,209 | 43,169 | 56,513 |
| Free Cash Flow (k) | $88,994 | -$65,582 | $5,470 | $78,324 |
| Capital Expenditures | -$1,481 | -$10 | -$53 | -$274 |
| Net Current Assets (k) | -$365,261 | -$153,506 | -$120,635 | -$55,926 |
| Current Ratio | 0.56 | 0.71 | 0.77 | 1.39 |
| Long Term Debt (k) | $271,258 | $72,160 | $61,319 | $66,403 |
| Net Debt / EBITDA | -4.96 | -13.18 | 0.95 | 0.03 |
The Market May Be Undervaluing Assertio's Assets and Equity:
Assertio has a trailing twelve month P/E ratio of 4.0, compared to an average of 24.45 for the Health Care sector. Based on its EPS guidance of $0.61, the company has a forward P/E ratio of 10.3. The 1.0% compound average growth rate of Assertio's historical and projected earnings per share yields a PEG ratio of 4.07. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Assertio in terms of its equity because its P/B ratio is 1.27 while the sector average is 4.16. The company's shares are currently trading -54.9% below their Graham number.
Assertio Has an Average Rating of Buy:
The 4 analysts following Assertio have set target prices ranging from $9.0 to $10.0 per share, for an average of $9.75 with a buy rating. As of April 2023, the company is trading -35.4% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Assertio has an unusually large proportion of its shares sold short because 18.4% of the company's shares are sold short. Institutions own 34.0% of the company's shares, and the insider ownership rate stands at 1.9%, suggesting a small amount of insider investors. The largest shareholder is the Vanguard Group, Inc., whose 4% stake in the company is worth $13,803,595.
