Eagle Pharmaceuticals, Inc.: Sudden move in price, will it continue?

Eagle Pharmaceuticals, Inc. relative valuation is UNDERVALUED and it has a fundamental analysis score of 75.

Our analysis is based on comparing Eagle Pharmaceuticals, Inc. with the following peers – Madrigal Pharmaceuticals, Inc., Johnson & Johnson, GlaxoSmithKline plc Sponsored ADR, Medicines Company, Novartis AG Sponsored ADR, Teva Pharmaceutical Industries Limited Sponsored ADR, Bristol-Myers Squibb Company, Amgen Inc. and Eli Lilly and Company (MDGL-US, JNJ-US, GSK-US, MDCO-US, NVS-US, TEVA-US, BMY-US, AMGN-US and LLY-US).

Eagle Pharmaceuticals, Inc. has shown underwhelming performance overall, both over the last one year (at -8.71%) as well as over the last month (at -28.82%). Share price performance over the last month has been worse than that over the last year. In fact, Eagle Pharmaceuticals, Inc.’s stock has done worse than its overall peer group over the last month.

Company Snapshot

  • Considering peers, relative underperformance over the last year and the last month suggest a lagging position.
  • It’s current Price/Book of 5.12 is about median in its peer group.
  • We classify EGRX-US as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
  • EGRX-US has a successful operating model with relatively high net profit margins and asset turns.
  • The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
  • Over the last five years, EGRX-US‘s return on assets has improved from below median to better than the median among its peers, suggesting that the company has improved its relative operations markedly.
  • The company’s relatively high pre-tax margin suggests tight control on operating costs versus peers.
  • While EGRX-US‘s revenue growth in recent years has been above the peer median, the stock’s P/E ratio is less than the peer median suggesting that the company’s earnings may be peaking and the market expects a decline in its growth expectations.
  • The company is likely overinvesting in a business with only median returns.
  • EGRX-US currently does not have any debt.
  • Our analysis rates Eagle Pharmaceuticals, Inc. as UNDERVALUED relative to its peers.

Share Price Performance

Considering peers, relative underperformance over the last year and the last month suggest a lagging position.

EGRX-US‘s share price performance of -8.71% for the last 12 months is below its peer median. The 30-day trend in its share price performance of -28.82% is also below the peer median implying that the company’s stock performance is lagging its peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Eagle Pharmaceuticals, Inc.’s price of USD 55.64 is lower than CapitalCube’s implied price of USD 83.33. CapitalCube believes that at these levels, Eagle Pharmaceuticals, Inc. is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 45.05 and USD 97.15.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Eagle Pharmaceuticals, Inc. is a pharmaceutical company engages in the provision of injectable products. Its activities include development and commercialization of pharmaceutical products for the treatment of areas such as critical care, orphan diseases, and oncology. The company was founded by Scott L. Tarriff on January 2, 2007 and is headquartered in Woodcliff Lake, NJ.

Disclaimer

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