NasdaqGM:AVDL

Stock Analysis Report

Executive Summary

Avadel Pharmaceuticals plc operates as a specialty pharmaceutical company in the United States, France, and Ireland.

Snowflake

Fundamentals

Imperfect balance sheet with weak fundamentals.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

4.7%

AVDL

-0.05%

US Pharmaceuticals

0.4%

US Market


1 Year Return

-12.4%

AVDL

-8.0%

US Pharmaceuticals

6.9%

US Market

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

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


Shareholder returns

AVDLIndustryMarket
7 Day4.7%-0.05%0.4%
30 Day8.5%-0.4%-1.2%
90 Day55.4%-1.7%-0.4%
1 Year-12.4%-12.4%-5.8%-8.0%9.3%6.9%
3 Yearn/a18.3%10.0%45.8%36.4%
5 Yearn/a22.1%9.2%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Avadel Pharmaceuticals is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Avadel Pharmaceuticals has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

Future Growth

How is Avadel Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

62.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: AVDL's revenue is expected to decline over the next 3 years (-44.8% per year).

High Growth Revenue: AVDL's revenue is forecast to decline over the next 3 years (-44.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Avadel Pharmaceuticals performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AVDL is unprofitable, but has reduced losses over the past 5 years at a rate of 1.8% per year.

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

Earnings vs Industry: AVDL is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (24.3%).


Return on Equity

High ROE: AVDL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Avadel Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: AVDL has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: AVDL has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: AVDL has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: AVDL's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: AVDL has a low level of unsold assets or inventory.

Debt Coverage by Assets: AVDL has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: AVDL has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: AVDL has sufficient cash runway for 1.040894 years if free cash flow continues to reduce at historical rates of -96.2% each year.


Next Steps

Dividend

What is Avadel Pharmaceuticals'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 AVDL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AVDL'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 AVDL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AVDL'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 AVDL'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 Avadel Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Greg Divis (52yo)

0.8yrs

Tenure

0

Mr. Gregory J. Divis Jr., also known as Greg, has been the Chief Executive Officer and Director of Avadel Pharmaceuticals plc since June 3, 2019. Mr. Divis served as an Interim Chief Executive Officer at  ...


Management Age and Tenure

4.1yrs

Average Tenure

54yo

Average Age

Experienced Management: AVDL's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

1.3yrs

Average Tenure

54yo

Average Age

Experienced Board: AVDL's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$21,02218 Dec 18
Michael Kanan
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares8,429
Max PriceUS$2.49
SellUS$1,65618 Dec 18
David Gusky
EntityIndividual
Shares617
Max PriceUS$2.68
SellUS$8,18318 Dec 18
Sandra Hatten
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Quality & Regulatory Affairs
Shares3,173
Max PriceUS$2.58

Ownership Breakdown


Management Team

  • Christian Kalita

    Chief Pharmacist and Director of Quality Assurance & Regulatory Affairs

    • Tenure: 0yrs
  • Mark Elrod

    Vice President of Sales

    • Tenure: 3.2yrs
  • Greg Divis (52yo)

    CEO & Director

    • Tenure: 0.8yrs
  • Mike Kanan (56yo)

    Senior VP & CFO

    • Tenure: 3.9yrs
    • Compensation: US$477.05k
  • Phil Thompson (45yo)

    Senior VP

    • Tenure: 5.9yrs
    • Compensation: US$450.38k
  • Sandy Hatten (62yo)

    Senior Vice President of Quality & Regulatory Affairs

    • Tenure: 4.3yrs
    • Compensation: US$380.79k
  • Jordan Dubow (41yo)

    Chief Medical Officer

    • Tenure: 0.5yrs
  • Séverine Martin

    Director of Human Resources and Corporate Projects

    • Tenure: 5.2yrs
  • Gregg Divis (54yo)

    VP of Corporate and Business Development

    • Tenure: 4.3yrs
    • Compensation: US$685.43k
  • Steve Sullivan (54yo)

    VP of Sales & Marketing and Head of Commercial Operations

    • Tenure: 0yrs

Board Members

  • Jean-Marie Lehn (80yo)

    Member of Scientific Advisory Board

    • Tenure: 14.8yrs
  • Peter Thornton (54yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$227.38k
  • Christian Trepo

    Member of Scientific Advisory Board

    • Tenure: 14.8yrs
  • Patrick Couvreur

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Eric Ende (50yo)

    Director

    • Tenure: 0.8yrs
  • Catherine Bréchignac (72yo)

    Chairman of Scientific Advisory Board

    • Tenure: 0yrs
  • Greg Divis (52yo)

    CEO & Director

    • Tenure: 0.8yrs
  • Geoff Glass (45yo)

    Non-Executive Chairman of the Board

    • Tenure: 0.8yrs
    • Compensation: US$214.40k
  • Linda Palczuk (57yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$214.40k

Company Information

Avadel Pharmaceuticals plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avadel Pharmaceuticals plc
  • Ticker: AVDL
  • Exchange: NasdaqGM
  • Founded: 2015
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$134.447m
  • Shares outstanding: 37.45m
  • Website: https://www.avadel.com

Number of Employees


Location

  • Avadel Pharmaceuticals plc
  • Blanchardstown Corporate Park
  • Block 10-1
  • Dublin
  • Co. Dublin
  • 15
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVDLNasdaqGM (Nasdaq Global Market)YesSPON ADR EACH REP 1 ORD SHSUSUSDJan 2017
AWK1DB (Deutsche Boerse AG)YesSPON ADR EACH REP 1 ORD SHSDEEURJan 2017

Biography

Avadel Pharmaceuticals plc operates as a specialty pharmaceutical company in the United States, France, and Ireland. The company primarily develops FT218, which is in a Phase 3 clinical trial for the treat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 00:36
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.