How would you value this company? the market doesn’t like it even though it’s making 260million a year going forward with no debt. Is there an issue with the IP?
AUPH is now $1.1B market cap, with the stock up 40% in the past year and down 10% YTD. Net cash is about $370M. Cash flow was $44M last year. 2024 was its first year of profit. Very good earnings growth (3X) is expected this year as sales ramp up, with about 30% growth predicted for 2026. The last quarter was solid with a nice 'beat' on earnings. Guidance was affirmed. The stock is cheap at 13X earnings. It has 6 BUYS and 1 HOLD by analysts. We do not think anthing is 'wrong' here. It is a small company that historically has lost money, in a sector that is kind of under seige from governments. Its valuation is not out of line with peers, but there are larger, safer companies just as cheap, so investors often favour those, as they also have dividends. It is also a Canadian company trading in the US which can add some investor confusion. Insiders own 11% and have been net buyers this year. We think it is fine, but not screamingly cheap or massively attractive based on comparative companies.