NasdaqGS:AKRX

Stock Analysis Report

Executive Summary

Akorn, Inc., a specialty generic 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

Fundamentals

Fair value with worrying 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


Market Performance


7 Day Return

17.9%

AKRX

-0.05%

US Pharmaceuticals

0.4%

US Market


1 Year Return

-34.4%

AKRX

-8.0%

US Pharmaceuticals

6.9%

US Market

Return vs Industry: AKRX underperformed the US Pharmaceuticals industry which returned -8% over the past year.

Return vs Market: AKRX underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

AKRXIndustryMarket
7 Day17.9%-0.05%0.4%
30 Day22.6%-0.4%-1.2%
90 Day20.1%-1.7%-0.4%
1 Year-34.4%-34.4%-5.8%-8.0%9.3%6.9%
3 Year-82.8%-82.8%18.3%10.0%45.8%36.4%
5 Year-89.6%-89.6%22.1%9.2%62.9%45.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: AKRX ($4.61) is trading below our estimate of fair value ($17.53)

Significantly Undervalued: AKRX is trading below fair value by more than 20%.


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

Low 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 (2.2x) compared to the US Pharmaceuticals industry average (2.9x).


Next Steps

Future Growth

How is Akorn forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

102.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKRX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AKRX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AKRX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AKRX's revenue (3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: AKRX's revenue (3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-58.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AKRX is unprofitable, and losses have increased over the past 5 years at a rate of -58.6% 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 (24.3%).


Return on Equity

High ROE: AKRX has a negative Return on Equity (-183.4%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: AKRX is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: AKRX is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Akorn's financial position?


Financial Position Analysis

Short Term Liabilities: AKRX's short term assets ($537.8M) do not cover its short term liabilities ($1.0B)

Long Term Liabilities: AKRX's short term assets (537.8M) exceeds its long term liabilities (121.3M)


Debt to Equity History and Analysis

Debt Level: AKRX's debt to equity ratio (317.2%) is considered high

Reducing Debt: AKRX's debt to equity ratio has increased from 247.5% to 317.2% over the past 5 years.

Debt Coverage: AKRX's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if AKRX's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: AKRX has a high level of physical assets or inventory.

Debt Coverage by Assets: AKRX's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Akorn's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Doug Boothe (55yo)

0.8yrs

Tenure

0

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  ...


Management Age and Tenure

3.5yrs

Average Tenure

53.5yo

Average Age

Experienced Management: AKRX's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

7.6yrs

Average Tenure

67yo

Average Age

Experienced Board: AKRX's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$52,00015 Aug 19
Steven Meyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$2.70
BuyUS$198,50004 Jun 19
Alan Weinstein
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares50,000
Max PriceUS$3.97
BuyUS$37,50030 May 19
Steven Meyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$3.75
BuyUS$61,50022 May 19
Steven Meyer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$4.10
BuyUS$40,30015 May 19
Terry Rappuhn
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$4.03
BuyUS$112,00018 Dec 18
Joseph Bonaccorsi
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares25,000
Max PriceUS$4.48

Ownership Breakdown


Management Team

  • Bruce Kutinsky (53yo)

    Consultant

    • Tenure: 0.8yrs
    • Compensation: US$3.37m
  • Joe Bonaccorsi (54yo)

    Executive VP

    • Tenure: 10.8yrs
    • Compensation: US$2.10m
  • Duane Portwood (53yo)

    Executive VP & CFO

    • Tenure: 4yrs
    • Compensation: US$1.69m
  • John Sabat (69yo)

    Senior Vice President of National Accounts & Trade Relations

    • Tenure: 15yrs
    • Compensation: US$759.53k
  • Doug Boothe (55yo)

    President

    • Tenure: 0.8yrs
  • Chris Young (47yo)

    Executive Vice President of Global Operations

    • Tenure: 0.8yrs
  • Jon Kafer (56yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 0.8yrs
    • Compensation: US$1.16m
  • Randy Pollard (47yo)

    Senior VP of Finance & Chief Accounting Officer

    • Tenure: 4.2yrs
    • Compensation: US$1.41m
  • Greg Lawless

    Chief Human Resources Officer

    • Tenure: 3.8yrs
  • Rob Monahan

    Senior Vice President of Corporate Development

    • Tenure: 3.2yrs

Board Members

  • Terry Rappuhn (62yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$397.48k
  • Alan Weinstein (75yo)

    Independent Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$439.98k
  • Ken Abramowitz (68yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$364.98k
  • Adrienne Graves (66yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$384.98k
  • Brian Tambi (74yo)

    Director

    • Tenure: 10.3yrs
    • Compensation: US$357.48k
  • Ron Johnson (73yo)

    Independent Director

    • Tenure: 16.4yrs
    • Compensation: US$389.98k
  • Thomas Moore (67yo)

    Independent Director

    • Tenure: 0.8yrs
  • Doug Boothe (55yo)

    President

    • Tenure: 0.8yrs
  • Steven Meyer (62yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$372.48k

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$581.519m
  • Shares outstanding: 126.14m
  • 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

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:57
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.