NasdaqGS:AKRX

Stock Analysis Report

Executive Summary

Akorn, Inc., a specialty pharmaceutical company, develops, manufactures, and markets generic and branded prescription pharmaceuticals, over-the-counter (OTC) consumer health products, and animal health pharmaceuticals in the United States and internationally.


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

How has Akorn's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AKRX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.0%

AKRX

4.6%

US Pharmaceuticals

2.4%

US Market


1 Year Return

-93.9%

AKRX

-2.0%

US Pharmaceuticals

-10.0%

US Market

Return vs Industry: AKRX underperformed the US Pharmaceuticals industry which returned -3.4% over the past year.

Return vs Market: AKRX underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

AKRXIndustryMarket
7 Day-1.0%4.6%2.4%
30 Day-75.3%-3.1%-11.0%
90 Day-84.5%-7.9%-19.4%
1 Year-93.9%-93.9%0.5%-2.0%-8.1%-10.0%
3 Year-99.4%-99.4%18.6%10.0%17.3%9.6%
5 Year-99.6%-99.6%18.5%5.4%36.1%21.1%

Price Volatility Vs. Market

How volatile is Akorn's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Akorn undervalued compared to its fair value and its price relative to the market?

0.11x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AKRX's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AKRX's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AKRX is unprofitable, so we can't compare its PE Ratio to the Pharmaceuticals industry average.

PE vs Market: AKRX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AKRX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AKRX is good value based on its PB Ratio (0.1x) compared to the US Pharmaceuticals industry average (2.3x).


Next Steps

Future Growth

How is Akorn forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

88.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKRX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: AKRX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AKRX's is expected to become profitable in the next 3 years.

Revenue vs Market: AKRX's revenue (1.8% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: AKRX's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AKRX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Akorn performed over the past 5 years?

-62.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKRX is currently unprofitable.

Growing Profit Margin: AKRX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AKRX is unprofitable, and losses have increased over the past 5 years at a rate of -62.4% per year.

Accelerating Growth: Unable to compare AKRX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AKRX is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-0.2%).


Return on Equity

High ROE: AKRX has a negative Return on Equity (-96.79%), as it is currently unprofitable.


Next Steps

Financial Health

How is Akorn's financial position?


Financial Position Analysis

Short Term Liabilities: AKRX's short term assets ($480.0M) do not cover its short term liabilities ($985.6M).

Long Term Liabilities: AKRX's short term assets ($480.0M) exceed its long term liabilities ($68.8M).


Debt to Equity History and Analysis

Debt Level: AKRX's debt to equity ratio (359.9%) is considered high.

Reducing Debt: AKRX's debt to equity ratio has increased from 314.9% to 359.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AKRX has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: AKRX has less than a year of cash runway if free cash flow continues to reduce at historical rates of -28.3% each year


Next Steps

Dividend

What is Akorn's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AKRX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AKRX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AKRX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AKRX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AKRX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Doug Boothe (55yo)

1.25s

Tenure

Mr. Douglas S. Boothe, also known as Doug, is President and Chief Executive Officer of Akorn, Inc since January 1, 2019 and serves as its Director since January 28, 2019. Mr. Boothe was President of Impax  ...


Leadership Team

NamePositionTenureCompensationOwnership
Duane Portwood
Executive VP & CFO4.5yrsUS$1.69m0.027% $6.7k
Joseph Bonaccorsi
Executive VP11.25yrsUS$2.10m0.37% $93.1k
Jonathan Kafer
Executive VP & Chief Commercial Officer1.33yrsUS$1.16m0.0035% $869.3
Douglas Boothe
President1.25yrsno data0.37% $92.0k
Christopher Young
Executive Vice President of Global Operations1.25yrsno datano data
Randall Pollard
Senior VP of Finance & Chief Accounting Officer4.67yrsUS$1.41m0.0084% $2.1k
Jennifer Bowles
Senior Vice President of Corporate Strategy & Investor Relationsno datano datano data
Robert Monahan
Senior Vice President of Corporate Development3.67yrsno datano data
Gregory Lawless
Chief Human Resources Officer4.25yrsno datano data
John Sabat
Senior Vice President of National Accounts & Trade Relations15.5yrsUS$759.53kno data

4.3yrs

Average Tenure

54yo

Average Age

Experienced Management: AKRX's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Douglas Boothe
President1.25yrsno data0.37% $92.0k
Terry Rappuhn
Independent Director5yrsUS$397.48k0.017% $4.3k
Alan Weinstein
Independent Chairman of the Board3.25yrsUS$439.98k0.11% $26.7k
Kenneth Abramowitz
Independent Director9.92yrsUS$364.98k0.029% $7.2k
Adrienne Graves
Independent Director8.08yrsUS$384.98k0.025% $6.1k
Brian Tambi
Director10.83yrsUS$357.48k0.039% $9.7k
Thomas Moore
Independent Director1.25yrsno datano data
Steven Meyer
Independent Director10.83yrsUS$372.48k0.19% $46.7k

6.5yrs

Average Tenure

66.5yo

Average Age

Experienced Board: AKRX's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AKRX insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Akorn, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Akorn, Inc.
  • Ticker: AKRX
  • Exchange: NasdaqGS
  • Founded: 1971
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$24.908m
  • Shares outstanding: 126.25m
  • Website: https://www.akorn.com

Number of Employees


Location

  • Akorn, Inc.
  • 1925 West Field Court
  • Suite 300
  • Lake Forest
  • Illinois
  • 60045
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AKRXNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDApr 1988
FDADB (Deutsche Boerse AG)YesCommon SharesDEEURApr 1988
FDABRSE (Berne Stock Exchange)YesCommon SharesCHCHFApr 1988

Biography

Akorn, Inc., a specialty pharmaceutical company, develops, manufactures, and markets generic and branded prescription pharmaceuticals, over-the-counter (OTC) consumer health products, and animal health pharmaceuticals in the United States and internationally. The company operates in two segments, Prescription Pharmaceuticals and Consumer Health. The Prescription Pharmaceuticals segment offers generic and branded prescription pharmaceuticals in various dosage forms, including sterile ophthalmics, injectables, and inhalants; and non-sterile oral liquids, topicals, nasal sprays, and otics. Its primary products include Akten, a topical ocular anesthetic gel; AzaSite, an antibiotic used to treat bacterial conjunctivitis; Cosopt, Cosopt PF, Betimol, and Zioptan, which are used in the treatment of glaucoma; and Xopenex inhalation solution used in the treatment or prevention of bronchospasm. The Consumer Health segment manufactures and markets OTC products for the treatment of dry eye under the TheraTears brand. It also markets other OTC consumer health products comprising Mag-Ox, a magnesium supplement; and the Diabetic Tussin line of cough and cold products. In addition, this segment offers a portfolio of animal health products, such as Anased and VetaKet veterinary sedatives; Tolazine and Yobine sedative reversing agents; and Butorphic, a pain reliever. Further, the company sells its products to wholesale distributors. Akorn, Inc. was founded in 1971 and is headquartered in Lake Forest, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 07:18
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.