In the world of growth stocks, NASDAQ:TGTX shines as a value proposition.

Last update: Aug 28, 2024

TG THERAPEUTICS INC (NASDAQ:TGTX) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:TGTX is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Assessing Growth Metrics for NASDAQ:TGTX

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:TGTX boasts a 8 out of 10:

The Earnings Per Share has grown by an impressive 147.24% over the past year.
TGTX shows a strong growth in Revenue. In the last year, the Revenue has grown by 1338.63%.
The Revenue has been growing by 335.01% on average over the past years. This is a very strong growth!
Based on estimates for the next years, TGTX will show a very strong growth in Earnings Per Share. The EPS will grow by 229.97% on average per year.
Based on estimates for the next years, TGTX will show a very strong growth in Revenue. The Revenue will grow by 41.13% on average per year.

Analyzing Valuation Metrics

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:TGTX was assigned a score of 6 for valuation:

95.43% of the companies in the same industry are more expensive than TGTX, based on the Price/Earnings ratio.
Based on the Price/Forward Earnings ratio, TGTX is valued cheaply inside the industry as 93.32% of the companies are valued more expensively.
TGTX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. TGTX is cheaper than 94.73% of the companies in the same industry.
TGTX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TGTX is cheaper than 95.25% of the companies in the same industry.
TGTX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TGTX's earnings are expected to grow with 439.37% in the coming years. This may justify a more expensive valuation.

How We Gauge Health for NASDAQ:TGTX

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:TGTX was assigned a score of 7 for health:

TGTX has an Altman-Z score of 6.69. This indicates that TGTX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of TGTX (6.69) is better than 82.43% of its industry peers.
TGTX has a debt to FCF ratio of 1.51. This is a very positive value and a sign of high solvency as it would only need 1.51 years to pay back of all of its debts.
TGTX's Debt to FCF ratio of 1.51 is amongst the best of the industry. TGTX outperforms 96.66% of its industry peers.
Although TGTX does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
TGTX has a Current Ratio of 3.58. This indicates that TGTX is financially healthy and has no problem in meeting its short term obligations.
TGTX has a Quick Ratio of 2.83. This indicates that TGTX is financially healthy and has no problem in meeting its short term obligations.

Understanding NASDAQ:TGTX's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:TGTX was assigned a score of 5 for profitability:

TGTX has a better Return On Assets (23.84%) than 99.12% of its industry peers.
TGTX has a Return On Equity of 53.87%. This is amongst the best in the industry. TGTX outperforms 99.30% of its industry peers.
Looking at the Return On Invested Capital, with a value of 27.51%, TGTX belongs to the top of the industry, outperforming 99.47% of the companies in the same industry.
TGTX has a Profit Margin of 27.59%. This is amongst the best in the industry. TGTX outperforms 97.89% of its industry peers.
Looking at the Operating Margin, with a value of 29.38%, TGTX belongs to the top of the industry, outperforming 98.24% of the companies in the same industry.
The Gross Margin of TGTX (92.76%) is better than 94.38% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of TGTX for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.