NasdaqGS:OSMT

Stock Analysis Report

Executive Summary

Osmotica Pharmaceuticals plc, an integrated biopharmaceutical company, focuses on the development and commercialization of pharmaceutical products that target markets with underserved patient populations.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

30.7%

OSMT

0.9%

US Pharmaceuticals

0.8%

US Market


1 Year Return

-15.5%

OSMT

13.9%

US Pharmaceuticals

25.1%

US Market

Return vs Industry: OSMT underperformed the US Pharmaceuticals industry which returned 12.6% over the past year.

Return vs Market: OSMT underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

OSMTIndustryMarket
7 Day30.7%0.9%0.8%
30 Day-12.3%2.7%3.1%
90 Day45.6%15.5%10.9%
1 Year-15.5%-15.5%16.8%13.9%27.7%25.1%
3 Yearn/a43.3%33.0%51.3%41.6%
5 Yearn/a29.9%16.2%77.2%57.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OSMT ($4.97) is trading below our estimate of fair value ($46.4)

Significantly Below Fair Value: OSMT is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: OSMT 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 OSMT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OSMT is good value based on its PB Ratio (1.8x) compared to the US Pharmaceuticals industry average (3.3x).


Next Steps

Future Growth

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

66.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: OSMT's revenue (9.1% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: OSMT's revenue (9.1% 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 OSMT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Osmotica Pharmaceuticals performed over the past 5 years?

-23542.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: OSMT is currently unprofitable.

Growing Profit Margin: OSMT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if OSMT's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: OSMT is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (36.8%).


Return on Equity

High ROE: OSMT has a negative Return on Equity (-247.7%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Osmotica Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: OSMT's short term assets ($167.3M) exceed its short term liabilities ($78.6M).

Long Term Liabilities: OSMT's short term assets ($167.3M) do not cover its long term liabilities ($273.9M).


Debt to Equity History and Analysis

Debt Level: OSMT's debt to equity ratio (189.2%) is considered high.

Reducing Debt: Insufficient data to determine if OSMT's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: OSMT's 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.

Stable Cash Runway: Whilst unprofitable OSMT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: OSMT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 144.4% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

4.0yrs

Average management tenure


CEO

Brian Markison (60yo)

4yrs

Tenure

US$3,445,942

Compensation

Mr. Brian A. Markison has served as Chairman of the Board and Chief Executive Officer of Osmotica Pharmaceutical Corp. since 2016. Mr. Markison has been an Operating Executive and Healthcare Industry Execu ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD3.45M) is above average for companies of similar size in the US market ($USD1.08M).

Compensation vs Earnings: Brian's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.0yrs

Average Tenure

57yo

Average Age

Experienced Management: OSMT's management team is considered experienced (4 years average tenure).


Board Age and Tenure

4.0yrs

Average Tenure

61yo

Average Age

Experienced Board: OSMT's board of directors are considered experienced (4 years average tenure).


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

BuyUS$6,250,00015 Jan 20
Altchem Limited
EntityCompany
Shares1,250,000
Max PriceUS$5.00
BuyUS$6,250,00015 Jan 20
Avista Capital Holdings, L.P.
EntityCompany
Shares1,250,000
Max PriceUS$5.00

Ownership Breakdown

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


Management Team

  • Tina deVries (57yo)

    Executive Vice President of Research & Development

    • Tenure: 3.7yrs
    • Compensation: US$1.23m
  • Andy Einhorn (59yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: US$505.07k
  • Brian Markison (60yo)

    Chairman

    • Tenure: 4yrs
    • Compensation: US$3.45m
  • Chris Klein (54yo)

    General Counsel & Secretary

    • Tenure: 6.1yrs
    • Compensation: US$1.23m
  • James Schaub (36yo)

    Executive VP & COO

    • Tenure: 4yrs
    • Compensation: US$1.23m
  • Sergio Alegre

    Vice President of Global Compliance

    • Tenure: 3.4yrs
  • Jarret Miller

    Executive Vice President of Human Resources

    • Tenure: 4yrs

Board Members

  • Greg Cowan (65yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$402.91k
  • Fred Weiss (77yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$462.91k
  • David Burgstahler (51yo)

    Director

    • Tenure: 4yrs
    • Compensation: US$68.75k
  • Brian Markison (60yo)

    Chairman

    • Tenure: 4yrs
    • Compensation: US$3.45m
  • Sriram Venkataraman (47yo)

    Director

    • Tenure: 4yrs
    • Compensation: US$57.50k
  • Juan Vergez (61yo)

    Director

    • Tenure: 4yrs
    • Compensation: US$55.00k
  • Carlos Sielecki (61yo)

    Director

    • Tenure: 4yrs
    • Compensation: US$63.75k
  • Mike DeBiasi

    Director

    • Tenure: 0.3yrs
    • Compensation: US$15.00k

Company Information

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


Key Information

  • Name: Osmotica Pharmaceuticals plc
  • Ticker: OSMT
  • Exchange: NasdaqGS
  • Founded:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$376.940m
  • Shares outstanding: 57.90m
  • Website: https://www.osmotica.com

Number of Employees


Location

  • Osmotica Pharmaceuticals plc
  • 400 Crossing Boulevard
  • Bridgewater
  • New Jersey
  • 8807
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OSMTNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDOct 2018
O1PDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2018

Biography

Osmotica Pharmaceuticals plc, an integrated biopharmaceutical company, focuses on the development and commercialization of pharmaceutical products that target markets with underserved patient populations. The company’s promoted approved products include specialty neurology products, such as M-72 to treat attention deficit hyperactivity disorder (ADHD); Osmolex ER for treating Parkinson's and drug-induced extrapyramidal reactions in adults; Lorzone for muscle spasms; ConZip to treat pain; and Ontinua ER for treating opioid withdrawal symptoms. It also provides women’s health products, including Divigel for menopause, as well as OB Complete, a dietary supplement for prenatal, pregnancy, and postnatal periods; and RVL-1201 for treating Blepharoptos. In addition, the company’s non-promoted approved products comprise Methylphenidate ER for ADHD; Venlafaxine ER tablets to treat major depressive disorder and social anxiety disorder; Hydromorphone ER for treating; Nifedipine ER for hypertension; Sodium Benzoate/Sodium Phenylacetate to treat hyperammonemia; Oxybutynin ER for overactive bladder; and prescription prenatal vitamins for treating nutritional requirements during pregnancy, as well as Osmodex and other abbreviated new drug applications. Osmotica Pharmaceuticals plc is headquartered in Bridgewater, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/22 00:55
End of Day Share Price2020/01/21 00:00
Earnings2019/09/30
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.