Fundamental Analysis


We are a specialty pharmaceutical company focused on developing and commercializing products for the treatment of central nervous system (CNS) diseases. Our extensive expertise in product development has been built over the past 25 years: initially as a standalone development organization, then as a U.S. subsidiary of Shire plc and, in late 2005, as Supernus Pharmaceuticals. We market our products in the United States through our own specialty sales force and seek strategic collaborations with other pharmaceutical companies to license our products outside the United States.

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High level decisions on buy or sell for a stock should be driven by

1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.

    • Here we see SUPERNUS PHARMACEUTICALSmakes a margin of 35% on Gross Level and about 29% on Net level. This means that out of $1 that it makes $0.29 is being pocketed as profits. This is among the best margins across a ton of companies.

2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.

    • Here we see net revenue growth of 57% in the revenue and the net profit figures grew by 155%.

3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.

    • Here we see SUPERNUS PHARMACEUTICALSmakes a Return on Assets of 13% and Return of Equity of 30% which is pretty good. Even the Debt/Equity ratio is great.

Although you would notice very less chatter on the media on this stock you can be sure that the last 3 month/one year returns on this stock are amazing. Although this being in the Pharma space may not be a consistent continuously up-trending earnings trajectory.

GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.

All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by SUPERNUS PHARMACEUTICALS to the SEC. All the data on the above analysis can be found at the link below

Balance Sheet

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Income Statement

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