NasdaqGM:SUPN

Stock Analysis Report

Executive Summary

Supernus Pharmaceuticals, Inc., a pharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system diseases in the United States.

Rewards

Trading at 60.8% below its fair value

Earnings have grown 43.3% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of -9.5% per year for the next 3 years

Has a high level of debt



Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SUPN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

SUPN

2.5%

US Pharmaceuticals

2.0%

US Market


1 Year Return

-35.7%

SUPN

12.7%

US Pharmaceuticals

23.5%

US Market

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

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


Shareholder returns

SUPNIndustryMarket
7 Day0.9%2.5%2.0%
30 Day4.1%4.5%4.3%
90 Day-4.7%16.0%12.2%
1 Year-35.7%-35.7%15.6%12.7%26.1%23.5%
3 Year4.3%4.3%40.8%30.7%53.1%43.2%
5 Year185.4%185.4%29.5%15.8%75.5%56.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Supernus 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: SUPN ($23.79) is trading below our estimate of fair value ($60.73)

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


Price To Earnings Ratio

PE vs Industry: SUPN is good value based on its PE Ratio (11.8x) compared to the Pharmaceuticals industry average (24.9x).

PE vs Market: SUPN is good value based on its PE Ratio (11.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: SUPN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SUPN is good value based on its PB Ratio (2.2x) compared to the US Pharmaceuticals industry average (3.3x).


Next Steps

Future Growth

How is Supernus Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SUPN's earnings are forecast to decline over the next 3 years (-9.5% per year).

Earnings vs Market: SUPN's earnings are forecast to decline over the next 3 years (-9.5% per year).

High Growth Earnings: SUPN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SUPN's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: SUPN's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Supernus Pharmaceuticals performed over the past 5 years?

43.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SUPN has high quality earnings.

Growing Profit Margin: SUPN's current net profit margins (25.9%) are higher than last year (25.9%).


Past Earnings Growth Analysis

Earnings Trend: SUPN has become profitable over the past 5 years, growing earnings by 43.3% per year.

Accelerating Growth: SUPN's earnings growth over the past year (7.2%) is below its 5-year average (43.3% per year).

Earnings vs Industry: SUPN earnings growth over the past year (7.2%) underperformed the Pharmaceuticals industry 36.8%.


Return on Equity

High ROE: SUPN's Return on Equity (19%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Supernus Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: SUPN's short term assets ($427.1M) exceed its short term liabilities ($149.7M).

Long Term Liabilities: SUPN's short term assets ($427.1M) exceed its long term liabilities ($399.9M).


Debt to Equity History and Analysis

Debt Level: SUPN's debt to equity ratio (61.2%) is considered high.

Reducing Debt: SUPN's debt to equity ratio has increased from 40.2% to 61.2% over the past 5 years.

Debt Coverage: SUPN's debt is well covered by operating cash flow (38.7%).

Interest Coverage: SUPN's interest payments on its debt are well covered by EBIT (65.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: SUPN's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

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

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

7.5yrs

Average management tenure


CEO

Jack Khattar (58yo)

15yrs

Tenure

US$7,215,836

Compensation

Mr. Jack A. Khattar founded Supernus Pharmaceuticals, Inc. (Formerly, Shire Laboratories, Inc.) in 2005 and has been its Chief Executive Officer, President, Secretary and Director since 2005. From 1999 to  ...


CEO Compensation Analysis

Compensation vs Market: Jack's total compensation ($USD7.22M) is above average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Jack's compensation has increased by more than 20% in the past year.


Management Age and Tenure

7.5yrs

Average Tenure

64yo

Average Age

Experienced Management: SUPN's management team is seasoned and experienced (7.5 years average tenure).


Board Age and Tenure

6.9yrs

Average Tenure

66.5yo

Average Age

Experienced Board: SUPN's board of directors are considered experienced (6.9 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$189,98227 Aug 19
Jack Khattar
EntityIndividual
Role
Chief Executive Officer
Founder
Shares7,200
Max PriceUS$26.39

Ownership Breakdown

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


Management Team

  • Jack Khattar (58yo)

    Founder

    • Tenure: 15yrs
    • Compensation: US$7.22m
  • Gregory Patrick (68yo)

    Senior VP & CFO

    • Tenure: 8.2yrs
    • Compensation: US$1.24m
  • Padmanabh Bhatt (62yo)

    Chief Scientific Officer & Senior VP of Intellectual Property

    • Tenure: 7.8yrs
    • Compensation: US$1.23m
  • Tami Martin (64yo)

    Senior Vice President of Regulatory Affairs

    • Stefan K. Schwabe (67yo)

      Chief Medical Officer and Executive VP of Research & Development

      • Tenure: 7.5yrs
      • Compensation: US$1.28m
    • Todd Horich

      Vice President of Marketing

      • Tenure: 5yrs
    • Taylor Raiford

      Vice President of Sales

      • Tenure: 5yrs
    • Bryan Roecklein

      Vice President of Corporate Development

      • Tenure: 4.5yrs

    Board Members

    • Chuck Newhall (74yo)

      Chairman of the Board

      • Tenure: 3.4yrs
      • Compensation: US$298.13k
    • John Siebert (79yo)

      Independent Director

      • Tenure: 9yrs
      • Compensation: US$277.13k
    • Jack Khattar (58yo)

      Founder

      • Tenure: 15yrs
      • Compensation: US$7.22m
    • Georges Gemayel (59yo)

      Independent Director

      • Tenure: 4.8yrs
      • Compensation: US$267.13k
    • Carrolee Barlow (55yo)

      Independent Director

      • Tenure: 1.6yrs
      • Compensation: US$365.09k
    • Frederick Hudson (74yo)

      Independent Director

      • Tenure: 10yrs
      • Compensation: US$282.13k

    Company Information

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


    Key Information

    • Name: Supernus Pharmaceuticals, Inc.
    • Ticker: SUPN
    • Exchange: NasdaqGM
    • Founded: 2005
    • Industry: Pharmaceuticals
    • Sector: Pharmaceuticals & Biotech
    • Market Cap: US$1.283b
    • Shares outstanding: 52.46m
    • Website: https://www.supernus.com

    Number of Employees


    Location

    • Supernus Pharmaceuticals, Inc.
    • 1550 East Gude Drive
    • Rockville
    • Maryland
    • 20850
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    SUPNNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDMay 2012
    S49DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2012
    0LB2LSE (London Stock Exchange)YesCommon StockGBUSDMay 2012

    Biography

    Supernus Pharmaceuticals, Inc., a pharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system diseases in the United States. It offers Oxtellar XR, an extended-release oxcarbazepine for use in the treatment of epilepsy; and Trokendi XR, an extended-release topiramate, which is used for the treatment of epilepsy and migraine. The company’s product candidates comprise SPN-812, a viloxazine hydrochloride, which is in Phase III clinical trial that is used for the treatment of attention deficit hyperactivity disorder (ADHD); SPN-810, a molindone hydrochloride that is in Phase III clinical trial for the treatment of impulsive aggression in patients with ADHD; SPN-809, a viloxazine hydrochloride, which is in Phase II ready clinical trial for the treatment of depression; SPN-604 extended release oxcarbazepine for bipolar; and SPN-817 that is in phase I clinical trial for treating epilepsy. The company markets its products through wholesalers and distributors. Supernus Pharmaceuticals, Inc. was founded in 2005 and is based in Rockville, Maryland. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 00:20
    End of Day Share Price2020/01/17 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.