ADMA Biologics (ADMA) AI Stock Analysis

2,826 Followers

Top Page

ADMA Biologics

(NASDAQ:ADMA)

77Outperform

ADMA Biologics scores well due to strong financial performance and a positive earnings call outlook, reflecting substantial revenue growth and strategic advancements. Technical analysis supports a stable upward trend. While the valuation is fair, the absence of a dividend yield is a minor drawback. Overall, the stock is well-positioned for growth in the biotechnology sector, with some risks related to regulatory approvals.

Positive Factors

Financial Performance

ADMA's underlying performance is strong, as evidenced by improved guidance for 2025 and 2026 following their earnings report.

Growth Strategy

Expansion of collection centers from 50-70 to over 250 increases raw plasma acquisition capabilities.

Plasma Supply and Production

The recent long-term plasma contracts have alleviated supply concerns, supporting the growth potential for ASCENIV.

Negative Factors

Financial Filing Concerns

ADMA stated it would be unable to file its 2024 10-K within the prescribed timeframe.

Market Reaction

Key triggers behind the sell-off were a more modest than expected 2025 guide, ambiguity on bullish implications of the enhanced supply agreements, and valuation friction.

ADMA Biologics (ADMA) vs. S&P 500 (SPY)

Market Cap

$4.61B

Dividend YieldN/A

Average Volume (3M)3.43M

Price to Earnings (P/E)24.0

Beta (1Y)1.14

Revenue Growth65.15%

EPS GrowthN/A

CountryUS

Employees685

SectorHealthcare

Sector Strength71

IndustryBiotechnology

Share Statistics

EPS (TTM)0.81

Shares Outstanding237,615,100

10 Day Avg. Volume3,123,793

30 Day Avg. Volume3,427,689

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)11.03

Price to Cash Flow (P/CF)23.40

P/FCF Ratio23.40

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$25.00

Price Target Upside28.87% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

ADMA Biologics Business Overview & Revenue Model

Company DescriptionADMA Biologics, Inc., a biopharmaceutical company, engages in developing, manufacturing, and marketing specialty plasma-derived biologics for the treatment of immune deficiencies and infectious diseases in the United States and internationally. It offers BIVIGAM, an intravenous immune globulin (IVIG) product indicated for the treatment of primary humoral immunodeficiency (PI); ASCENIV, an IVIG product for the treatment of PI; and Nabi-HB for the treatment of acute exposure to blood containing Hepatitis B surface antigen and other listed exposures to Hepatitis B. The company also develops a pipeline of plasma-derived therapeutics, including products related to the methods of treatment and prevention of S. pneumonia infection for an immunoglobulin. In addition, it operates source plasma collection facilities. The company sells its products through independent distributors, sales agents, specialty pharmacies, and other alternate site providers. ADMA Biologics, Inc. was incorporated in 2004 and is headquartered in Ramsey, New Jersey.

How the Company Makes MoneyADMA Biologics generates revenue primarily through the sale of its plasma-derived products. The company's flagship products include ASCENIV and BIVIGAM, which are used to treat immune deficiencies and other related conditions. ADMA operates plasma collection centers, which provide the raw materials necessary for these biologics. The company has established distribution networks and partnerships with healthcare providers and specialty pharmacies to reach its target markets. Additionally, ADMA may engage in strategic collaborations and licensing agreements to expand its product offerings and market reach, contributing to its overall revenue.

ADMA Biologics Financial Statement Overview

Summary

ADMA Biologics has demonstrated remarkable financial improvement across income, balance sheet, and cash flow metrics. The company exhibits strong revenue and profit growth, improved operational efficiency, reduced leverage, and robust cash flow generation. These factors collectively signal a positive financial trajectory, positioning ADMA well for future growth and stability in the biotechnology industry.

Income Statement

Very Positive

ADMA Biologics has shown significant improvement in its income statement metrics over the years. The gross profit margin for 2024 is approximately 51.5%, reflecting efficient cost management. The net profit margin turned positive to 46.3% in 2024, a substantial improvement from negative figures in previous years, indicating successful turnaround efforts. The revenue growth rate from 2023 to 2024 is impressive at 65.1%, showcasing strong business expansion. Both EBIT and EBITDA margins have improved to 32.6% in 2024, highlighting operational efficiency. These improvements reflect robust financial health in the income statement.

Balance Sheet

Positive

The balance sheet of ADMA Biologics shows an improved financial position. The debt-to-equity ratio has decreased to 0.24 in 2024, demonstrating reduced leverage compared to prior years. The return on equity (ROE) has increased to 56.6%, indicating efficient use of equity capital to generate profits. The equity ratio stands at 71.4% in 2024, indicating strong equity financing and financial stability. Overall, the balance sheet metrics reflect a healthier and more stable financial structure.

Cash Flow

Positive

ADMA Biologics has achieved a strong turnaround in cash flow metrics. The free cash flow growth rate is notable, with free cash flow turning positive to $118.67 million in 2024 from negative figures in prior years. The operating cash flow to net income ratio is favorable at 0.60, indicating that the company's net income is well-supported by cash operations. The free cash flow to net income ratio matches the operating cash flow, indicating efficient cash generation relative to net income. These positive cash flow trends enhance the company's liquidity position.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
426.45M	258.21M	154.08M	80.94M	42.22M
	Gross Profit
219.55M	88.94M	35.27M	1.17M	-19.07M
	EBIT
138.98M	21.63M	-39.37M	-58.37M	-64.91M
	EBITDA
147.69M	5.12M	-39.72M	-53.33M	-59.82M
	Net Income Common Stockholders
197.67M	-28.24M	-85.18M	-84.45M	-87.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
103.15M	51.35M	86.52M	51.09M	55.92M
	Total Assets
488.68M	329.18M	348.46M	276.25M	207.67M
	Total Debt
82.12M	141.42M	154.44M	102.92M	97.67M
	Net Debt
-21.03M	90.07M	67.92M	51.83M	41.75M
	Total Liabilities
139.66M	193.98M	196.49M	135.08M	119.42M
	Stockholders Equity
349.02M	135.21M	151.97M	141.17M	88.25M
Cash Flow		Free Cash Flow
118.67M	3.82M	-73.42M	-125.88M	-114.73M
	Operating Cash Flow
118.67M	8.80M	-59.51M	-112.37M	-102.00M
	Investing Cash Flow
-8.57M	-4.98M	-13.91M	-13.51M	-12.72M
	Financing Cash Flow
-58.30M	-38.99M	108.85M	121.05M	143.90M

ADMA Biologics Technical Analysis

Technical Analysis Sentiment

Positive

Last Price19.40

Price Trends

50DMA

17.91

Positive

100DMA

18.11

Positive

200DMA

17.31

Positive

Market Momentum

MACD

0.60

Negative

RSI

65.50

Neutral

STOCH

88.88

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADMA, the sentiment is Positive. The current price of 19.4 is below the 20-day moving average (MA) of 19.73, above the 50-day MA of 17.91, and above the 200-day MA of 17.31, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 65.50 is Neutral, neither overbought nor oversold. The STOCH value of 88.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ADMA.

ADMA Biologics Risk Analysis

ADMA Biologics disclosed 55 risk factors in its most recent earnings report. ADMA Biologics reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

ADMA Biologics Peers Comparison

Overall Rating

UnderperformOutperform

Sector (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADMA	77 Outperform	$4.61B	23.97	81.65%	―	65.15%	―
VRNA	56 Neutral	$4.89B	―	-76.51%	―	―	-213.94%
ZLAB	54 Neutral	$3.45B	―	-31.41%	―	49.59%	24.92%
IONS	49 Neutral	$4.44B	―	-93.03%	―	-10.48%	-18.79%
PCVX	48 Neutral	$4.02B	―	-20.41%	―	―	7.75%
Sector *	48 Neutral	$6.46B	1.17	-48.25%	2.67%	19.50%	0.61%
CYTK	45 Neutral	$4.61B	―	435.49%	―	145.34%	3.20%

* Healthcare Sector Average

Performance Comparison

ADMA

ADMA Biologics

20.91

14.75

239.45%

CYTK

Cytokinetics

38.56

-30.44

-44.12%

IONS

Ionis Pharmaceuticals

28.38

-13.16

-31.68%

VRNA

Verona Pharma

57.81

41.61

256.85%

ZLAB

Zai Lab

30.38

15.96

110.68%

PCVX

Vaxcyte

30.23

-32.01

-51.43%

ADMA Biologics Earnings Call Summary

Earnings Call Date: Mar 3, 2025 | % Change Since: 22.55% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong positive outlook for ADMA Biologics, with significant revenue growth and strategic advancements in high-titer plasma supply and ASCENIV's market potential. However, there is some uncertainty with pending FDA approval and delayed audit completion.

Highlights

Exceptional Financial Growth

Total revenues reached $426.5 million, reflecting an increase of 65% year-over-year. Adjusted EBITDA grew to $164.6 million, representing a growth rate of 309% from the previous year.

ASCENIV's Market Potential

ASCENIV's forward-looking demand metrics are making new all-time highs into 2025. The company anticipates continued margin expansion and expects ASCENIV alone could surpass $1 billion in total annual revenue.

High-Titer Plasma Supply Contracts

Third-party high-titer plasma supply contracts have been executed, marking a transformative milestone and paving the way for long-term top-tier growth for ADMA.

Strong Financial Position

Total cash holdings exceeded $103 million at year-end 2024, representing a net cash surplus relative to the $75 million of total debt currently outstanding.

Projected Revenue and EBITDA Growth

The company expects total revenue to exceed $490 million in 2025 and $605 million in 2026, with adjusted EBITDA projected to surpass $225 million and $305 million respectively.

Lowlights

Ongoing FDA Review

The potential mid-year regulatory approval for the enhanced yield production process is still pending, which poses a risk if the timeline is delayed.

Delayed 10-K Filing

The company has not yet completed its audit procedures with KPMG, resulting in a delay in the filing of the Form 10-K.

Company Guidance

During the ADMA Biologics Fourth Quarter and Full Year 2024 Financial Results and Business Update Conference Call, the company reported substantial financial growth and revised its guidance upwards. Total revenues reached $426.5 million for 2024, marking a 65% increase year-over-year, and adjusted EBITDA grew by 309% to $164.6 million. For 2025, ADMA projects revenues to exceed $490 million with adjusted EBITDA surpassing $225 million, while 2026 guidance anticipates revenues of $605 million and adjusted EBITDA of $305 million. The company also raised adjusted net income projections to more than $175 million in 2025 and $235 million in 2026. Margin expansion is expected as the revenue mix shifts towards ASCENIV, which is seen as a potential $1 billion opportunity with brand durability through at least 2035. ADMA highlighted a transformative milestone with third-party high-titer plasma supply contracts, which could enable total annual revenue to potentially exceed $1 billion before 2030. The anticipated approval of an enhanced yield production process could further increase production output by approximately 20%, potentially driving additional financial upside.

ADMA Biologics Corporate Events

Executive/Board Changes

ADMA Biologics Approves 2025 Executive Compensation Package

Neutral

Feb 21, 2025

On February 19, 2025, ADMA Biologics’ Board of Directors approved the 2025 executive compensation package, which includes base salaries, cash bonuses for 2024 performance, and equity awards for top executives Adam S. Grossman, Kaitlin Kestenberg, and Brad Tade. These awards were based on the achievement of the company’s 2024 corporate goals. The Board also amended the equity grant policy for non-employee directors, increasing the annual equity grants and retainers for committee chairs and members, effective January 1, 2025, to enhance long-term incentive alignment.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.