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Aspen Pharmacare (APNHY)
:APNHY
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Aspen Pharmacare
(OTC:APNHY)
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Rating:48Neutral
Price Target:
$6.00
▲(3.63% Upside)
Aspen Pharmacare's overall stock score reflects significant financial challenges, with declining revenue, profitability, and cash flow being the most impactful factors. Technical analysis provides mixed signals, with bearish momentum and neutral RSI. Valuation metrics are concerning due to a negative P/E ratio, despite a modest dividend yield. The earnings call provided some positive insights, but the impact of lost contracts and adverse currency effects weigh heavily on the score.
Aspen Pharmacare (APNHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.60B
Dividend Yield2.06%
Average Volume (3M)853.00
Price to Earnings (P/E)10.6
Beta (1Y)0.42
Revenue Growth-0.03%
EPS Growth-123.67%
CountryUS
Employees8,867
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.42
Shares Outstanding446,252,320
10 Day Avg. Volume0
30 Day Avg. Volume853
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.79
Enterprise Value/Revenue0.10
Enterprise Value/Gross Profit0.23
Enterprise Value/Ebitda0.43
Forecast
1Y Price Target
$6.00Price Target Upside3.63% Upside
Rating ConsensusHold
Number of Analyst Covering1
Aspen Pharmacare Business Overview & Revenue Model
Company DescriptionAspen Pharmacare is a leading global specialty and generic pharmaceutical company headquartered in South Africa. It operates across various sectors including pharmaceuticals, consumer healthcare, and active pharmaceutical ingredients (APIs). The company focuses on providing high-quality, affordable medicines in therapeutic areas such as oncology, anesthesia, and critical care, along with a range of consumer health products. Aspen is recognized for its extensive portfolio of over 1,000 products and its commitment to improving patient access to essential medications worldwide.
How the Company Makes MoneyAspen Pharmacare generates revenue primarily through the sale of pharmaceutical products across various therapeutic categories. Its revenue model is built on three main streams: prescription medicines, consumer healthcare products, and active pharmaceutical ingredients. The company benefits from a robust distribution network that allows it to reach markets across Africa, Europe, and Asia-Pacific. Strategic partnerships and collaborations with other pharmaceutical companies enhance its product offerings and market presence. Additionally, Aspen's focus on generic pharmaceuticals allows it to compete effectively in price-sensitive markets, further contributing to its earnings. Factors such as regulatory approvals, successful product launches, and the expansion of its manufacturing capabilities also play significant roles in driving revenue growth.
Aspen Pharmacare Earnings Call Summary
Earnings Call Date:Sep 03, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in the Commercial Pharma segment and successful product launches, particularly in emerging markets. However, the loss of a key contract, adverse currency impacts, increased tax burdens, and challenges in the Manufacturing segment notably affected the overall financial performance.Q4-2025 Updates
Positive Updates
Strong Commercial Pharma Growth
The Commercial Pharma segment, which contributes 70-80% of turnover, showed strong momentum with double-digit constant exchange rate revenue and EBITDA growth.
Successful Launch of Mounjaro
The launch of Mounjaro in South Africa was the most successful in the private market's history, quickly reaching significant sales milestones and expanding the market by 130%.
Positive ESG Achievements
Aspen achieved an 8% increase in access to critical medicines, improved gender diversity in leadership to 32%, and a 24% reduction in carbon emissions.
Strong Cash Flow Performance
Aspen achieved an operating cash conversion rate of 147%, significantly higher than the previous years.
Latin America Portfolio Growth
The acquired Pfizer portfolio in Latin America grew by 34% since its acquisition in November 2023.
Negative Updates
Loss of Material Contract
An unexpected loss of a material contract led to a significant EBITDA reduction, impacting financial results.
Adverse Currency Impacts
The strong rand negatively impacted reported financial performance, with a ZAR 800 million EBITDA impact and a ZAR 600 million earnings impact.
Increased Tax and Impairments
New global tax regimes and retrospective implementation increased tax rates and led to ZAR 4.1 billion in intangible asset impairments.
Elevated Expenses and Interest Costs
Expenses were elevated due to the integration of the Sandoz China business, and interest costs increased by 21% due to foreign exchange volatility.
Manufacturing Segment Decline
The Manufacturing segment saw a decline in revenue and EBITDA due to the loss of the mRNA contract.
Company Guidance
During the call, Aspen's executives provided comprehensive guidance and insights into the company's financial performance and strategic direction. They highlighted a strong momentum in Commercial Pharma, contributing to 70-80% of turnover, with double-digit revenue and EBITDA growth at constant exchange rates across all segments, including Prescription Medicines, OTC Medicines, and Injectables. However, they faced challenges such as the unanticipated loss of a material contract, impacting EBITDA by ZAR 2 billion, and retrospective global tax regimes affecting tax rates and impairments. The rand's strength also diluted growth. Looking ahead, Aspen plans to sustain growth in Commercial Pharma, restructure its Finished Dosage Form facility, and tap into new opportunities like GLP-1s. They aim for mid-single-digit growth in Commercial Pharma and a return to positive EBITDA for their Manufacturing segment by FY27, with an emphasis on free cash flow generation. The company is also focusing on reducing net debt and capital expenditures while capitalizing on strategic partnerships and emerging market strengths.Aspen Pharmacare Financial Statement Overview
Summary
Aspen Pharmacare exhibits strong revenue growth and operational efficiency, with a solid gross profit margin. However, declining net profit margins and ROE, along with a significant drop in free cash flow, raise concerns. The company maintains a moderate leverage and strong equity position, providing financial stability, but needs to address profitability and cash flow issues.Income Statement
Aspen Pharmacare has shown a consistent increase in revenue over the years, with a revenue growth rate of 9.82% from 2023 to 2024. The gross profit margin stands at 43.44%, indicating strong profitability. However, the net profit margin has decreased to 9.85% in 2024, reflecting a decline in net income. The EBIT margin is 15.65%, and the EBITDA margin is 22.16%, both of which suggest healthy operational efficiency despite some decline in EBIT.45
Neutral
Balance Sheet
The company's debt-to-equity ratio is 0.43, indicating a moderate level of leverage. The return on equity (ROE) has decreased to 5.19%, which is a concern for investor returns. The equity ratio is 60.98%, showing a strong equity base relative to total assets, which enhances financial stability.60
Neutral
Cash Flow
Aspen Pharmacare's free cash flow has decreased significantly, with a negative growth rate of -70.50% from 2023 to 2024. The operating cash flow to net income ratio is 1.41, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has dropped to 0.16, highlighting challenges in maintaining free cash flow levels.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.52B | 43.36B | 44.71B | 40.71B | 38.61B | 37.77B |
| Gross Profit | 20.56B | 19.13B | 19.42B | 18.41B | 18.31B | 17.79B |
| EBITDA | 10.79B | 2.16B | 9.90B | 10.19B | 9.93B | 8.67B |
| Net Income | 4.48B | -1.08B | 4.40B | 5.23B | 6.49B | 4.81B |
Balance Sheet | ||||||
| Total Assets | 136.60B | 135.89B | 139.16B | 134.28B | 111.38B | 109.68B |
| Cash, Cash Equivalents and Short-Term Investments | 6.80B | 6.41B | 12.34B | 10.91B | 6.18B | 8.55B |
| Total Debt | 35.47B | 36.12B | 36.46B | 29.28B | 22.25B | 24.87B |
| Total Liabilities | 51.51B | 51.00B | 54.29B | 48.05B | 40.43B | 44.06B |
| Stockholders Equity | 85.09B | 84.89B | 84.86B | 86.24B | 70.94B | 65.63B |
Cash Flow | ||||||
| Free Cash Flow | 2.75B | 104.00M | 690.00M | 2.34B | 2.68B | 3.39B |
| Operating Cash Flow | 5.57B | 5.16B | 6.22B | 5.52B | 5.37B | 6.83B |
| Investing Cash Flow | -6.09B | -5.22B | -9.47B | -3.42B | -2.16B | 9.76B |
| Financing Cash Flow | 676.00M | -162.00M | 3.62B | -420.00M | -4.68B | -15.65B |
Aspen Pharmacare Technical Analysis
Neutral
5.79
Price Trends
5.86
Positive
6.22
Negative
7.32
Negative
Market Momentum
<0.01
Negative
55.72
Neutral
89.84
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APNHY, the sentiment is Neutral. The current price of 5.79 is above the 20-day moving average (MA) of 5.66, below the 50-day MA of 5.86, and below the 200-day MA of 7.32, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.72 is Neutral, neither overbought nor oversold. The STOCH value of 89.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for APNHY.
Aspen Pharmacare Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.79B | 43.85 | 6.38% | ― | 5.55% | 1145.24% | |
66 Neutral | $3.10B | 1,542.19 | 106.97% | ― | 9.81% | ― | |
52 Neutral | $2.75B | 5.74 | 47.54% | ― | -1.35% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $2.96B | ― | -1.32% | 5.30% | -2.32% | 35.46% | |
51 Neutral | $2.64B | 41.69 | 128.44% | ― | 98.37% | ― | |
48 Neutral | $2.60B | 10.58 | -1.18% | 2.06% | -0.03% | -123.67% |
* Healthcare Sector Average
APNHY
Aspen Pharmacare
5.79
-4.43
-43.35%
PRGO
Perrigo Company
21.62
-2.62
-10.81%
SUPN
Supernus Pharmaceuticals
50.17
15.63
45.25%
HCM
HUTCHMED
15.14
-5.76
-27.56%
AMRX
Amneal Pharmaceuticals
9.92
1.34
15.62%
ALVO
Alvotech
8.72
-3.62
-29.34%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.