Stock Analysis: Affordable Growth

Fundamental Rating

ADMA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 568 industry peers in the Biotechnology industry. ADMA is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. ADMA is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes ADMA very considerable for growth investing!

1. Profitability

1.1 Basic Checks

In the past year ADMA was profitable.

In the past year ADMA had a positive cash flow from operations.

ADMA had negative earnings in 4 of the past 5 years.

The reported operating cash flow has been mixed in the past 5 years: ADMA reported negative operating cash flow in multiple years.

1.2 Ratios

With an excellent Return On Assets value of 40.45%, ADMA belongs to the best of the industry, outperforming 99.47% of the companies in the same industry.

ADMA has a Return On Equity of 56.64%. This is amongst the best in the industry. ADMA outperforms 99.12% of its industry peers.

With an excellent Return On Invested Capital value of 25.35%, ADMA belongs to the best of the industry, outperforming 99.47% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	40.45%
ROE	56.64%
ROIC	25.35%

ROA(3y)4.32%

ROA(5y)-9.88%

ROE(3y)-2.53%

ROE(5y)-28.83%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

ADMA has a better Profit Margin (46.35%) than 99.30% of its industry peers.

Looking at the Operating Margin, with a value of 32.59%, ADMA belongs to the top of the industry, outperforming 98.59% of the companies in the same industry.

ADMA has a Gross Margin of 51.48%. This is in the better half of the industry: ADMA outperforms 76.23% of its industry peers.

ADMA's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	32.59%
PM (TTM)	46.35%
GM	51.48%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y226.2%

GM growth 5YN/A

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

ADMA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.

The number of shares outstanding for ADMA has been increased compared to 1 year ago.

The number of shares outstanding for ADMA has been increased compared to 5 years ago.

The debt/assets ratio for ADMA has been reduced compared to a year ago.

2.2 Solvency

An Altman-Z score of 21.73 indicates that ADMA is not in any danger for bankruptcy at the moment.

ADMA has a better Altman-Z score (21.73) than 95.25% of its industry peers.

The Debt to FCF ratio of ADMA is 0.66, which is an excellent value as it means it would take ADMA, only 0.66 years of fcf income to pay off all of its debts.

ADMA has a better Debt to FCF ratio (0.66) than 95.77% of its industry peers.

ADMA has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.

Looking at the Debt to Equity ratio, with a value of 0.21, ADMA is doing worse than 70.07% of the companies in the same industry.

Even though the debt/equity ratio score it not favorable for ADMA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

		Industry Rank	Sector Rank
Debt/Equity	0.21
Debt/FCF	0.66
Altman-Z	21.73

ROIC/WACC2.47

WACC10.26%

2.3 Liquidity

ADMA has a Current Ratio of 5.97. This indicates that ADMA is financially healthy and has no problem in meeting its short term obligations.

The Current ratio of ADMA (5.97) is better than 63.20% of its industry peers.

A Quick Ratio of 2.90 indicates that ADMA has no problem at all paying its short term obligations.

With a Quick ratio value of 2.90, ADMA is not doing good in the industry: 64.44% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	5.97
Quick Ratio	2.9

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

ADMA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 484.62%, which is quite impressive.

ADMA shows a strong growth in Revenue. In the last year, the Revenue has grown by 65.16%.

Measured over the past years, ADMA shows a very strong growth in Revenue. The Revenue has been growing by 70.84% on average per year.

EPS 1Y (TTM)484.62%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%275%

Revenue 1Y (TTM)65.16%

Revenue growth 3Y74.04%

Revenue growth 5Y70.84%

Sales Q2Q%59.06%

3.2 Future

ADMA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.09% yearly.

Based on estimates for the next years, ADMA will show a quite strong growth in Revenue. The Revenue will grow by 19.52% on average per year.

EPS Next Y44.84%

EPS Next 2Y41.87%

EPS Next 3Y35.39%

EPS Next 5Y28.09%

Revenue Next Year17.21%

Revenue Next 2Y21.99%

Revenue Next 3Y21.99%

Revenue Next 5Y19.52%

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 40.99, ADMA can be considered very expensive at the moment.

93.66% of the companies in the same industry are more expensive than ADMA, based on the Price/Earnings ratio.

The average S&P500 Price/Earnings ratio is at 27.63. ADMA is valued slightly more expensive when compared to this.

With a Price/Forward Earnings ratio of 28.30, ADMA can be considered very expensive at the moment.

Based on the Price/Forward Earnings ratio, ADMA is valued cheaper than 92.78% of the companies in the same industry.

ADMA is valuated rather expensively when we compare the Price/Forward Earnings ratio to 20.85, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	40.99
Fwd PE	28.3

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ADMA is valued cheaper than 94.01% of the companies in the same industry.

Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADMA indicates a rather cheap valuation: ADMA is cheaper than 93.84% of the companies listed in the same industry.