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 mediocre balance sheet.

Risks

  • Akorn has significant price volatility in the past 3 months.

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

1.1%

NasdaqGS:AKRX

1.9%

US Pharmaceuticals

2.1%

US Market


1 Year Return

-81.1%

NasdaqGS:AKRX

-6.0%

US Pharmaceuticals

-0.04%

US Market

AKRX underperformed the Pharmaceuticals industry which returned -5.8% over the past year.

AKRX underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

AKRXIndustryMarket
7 Day1.1%1.9%2.1%
30 Day-25.7%-1.7%-3.2%
90 Day-32.2%-3.5%2.8%
1 Year-81.1%-81.1%-3.7%-6.0%2.2%-0.04%
3 Year-89.8%-89.8%11.3%3.7%41.5%32.3%
5 Year-93.0%-93.0%23.4%10.4%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Akorn's share price is below the future cash flow value, and at a moderate discount (> 20%).

Akorn's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Akorn is loss making, we can't compare its value to the US Pharmaceuticals industry average.

Akorn is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Akorn, we can't assess if its growth is good value.


Price Based on Value of Assets

Akorn is good value based on assets compared to the US Pharmaceuticals industry average.


Next Steps

Future Growth

How is Akorn expected 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 Estimates


Future Annual Growth Analysis

Akorn's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

Akorn is not considered high growth as it is expected to be loss making for the next 1-3 years.

Akorn's revenue growth is positive but not above the United States of America market average.

Unable to compare Akorn's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Akorn's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Akorn will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Akorn does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Akorn's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Akorn's 1-year growth to the US Pharmaceuticals industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Akorn has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Akorn has efficiently used its assets last year compared to the US Pharmaceuticals industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Akorn improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Akorn's financial position?


Financial Position Analysis

Akorn's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Akorn's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Akorn's level of debt (317.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (247.5% vs 317.2% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.6x debt.


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.

Akorn has sufficient cash runway for 1.5 years based on current free cash flow.

Akorn has sufficient cash runway for 1.3 years if free cash flow continues to grow at historical rates of 90.9% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Akorn's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Akorn's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Akorn has not reported any payouts.

Unable to verify if Akorn's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Akorn has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Doug Boothe (55yo)

0.6yrs

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

3.3yrs

Average Tenure

53.5yo

Average Age

The tenure for the Akorn management team is about average.


Board Age and Tenure

7.4yrs

Average Tenure

67yo

Average Age

The tenure for the Akorn board of directors is about average.


Insider Trading

More shares have been bought than sold by Akorn individual insiders 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
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: 0.6yrs
    • Compensation: US$3.37m
  • Joe Bonaccorsi (54yo)

    Executive VP

    • Tenure: 10.6yrs
    • Compensation: US$2.10m
  • Duane Portwood (53yo)

    Executive VP & CFO

    • Tenure: 3.8yrs
    • Compensation: US$1.69m
  • John Sabat (69yo)

    Senior Vice President of National Accounts & Trade Relations

    • Tenure: 14.8yrs
    • Compensation: US$759.53k
  • Doug Boothe (55yo)

    President

    • Tenure: 0.6yrs
  • Chris Young (47yo)

    Executive Vice President of Global Operations

    • Tenure: 0.6yrs
  • Jon Kafer (56yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 0.7yrs
    • Compensation: US$1.16m
  • Randy Pollard (47yo)

    Senior VP of Finance & Chief Accounting Officer

    • Tenure: 4.0yrs
    • Compensation: US$1.41m
  • Greg Lawless

    Chief Human Resources Officer

    • Tenure: 3.6yrs
  • Rob Monahan

    Senior Vice President of Corporate Development

    • Tenure: 3.0yrs

Board Members

  • Terry Rappuhn (62yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$397.48k
  • Alan Weinstein (75yo)

    Chairman of the Board

    • Tenure: 2.6yrs
    • Compensation: US$439.98k
  • Ken Abramowitz (68yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$364.98k
  • Adrienne Graves (66yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$384.98k
  • Brian Tambi (74yo)

    Director

    • Tenure: 10.2yrs
    • Compensation: US$357.48k
  • Ron Johnson (73yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: US$389.98k
  • Thomas Moore (67yo)

    Director

    • Tenure: 0.6yrs
  • Doug Boothe (55yo)

    President

    • Tenure: 0.6yrs
  • Steven Meyer (62yo)

    Independent Director

    • Tenure: 10.2yrs
    • 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$345.632m
  • 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 Analysis2019/08/23 00:23
End of Day Share Price2019/08/22 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.