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Aspen Pharmacare (APNHY)
OTHER OTC:APNHY
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Aspen Pharmacare
(OTC:APNHY)
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Rating:50Neutral
Price Target:
$6.00
▼(-11.76% Downside)
Aspen Pharmacare's overall stock score is primarily impacted by its financial challenges, including declining revenue and profitability, and poor cash flow metrics. The earnings call provided some positive insights, particularly in the Commercial Pharma segment, but was offset by significant challenges such as contract losses and adverse currency impacts. Technical analysis and valuation also reflect a cautious outlook, with a neutral trend and negative earnings affecting the stock's attractiveness.
Positive Factors
Commercial Pharma Growth
The strong growth in the Commercial Pharma segment indicates a robust demand for Aspen's products, contributing significantly to the company's turnover and providing a stable revenue stream.
Successful Product Launch
The successful launch of Mounjaro demonstrates Aspen's ability to effectively introduce new products, expanding its market presence and driving future revenue growth.
Latin America Portfolio Growth
The significant growth of the Latin America portfolio underscores Aspen's strategic acquisition success and potential for further market penetration in emerging regions.
Negative Factors
Loss of Material Contract
The loss of a key contract impacts Aspen's financial performance, highlighting potential vulnerabilities in its revenue streams and the need for diversification.
Adverse Currency Impacts
Currency fluctuations pose a risk to Aspen's financial results, affecting profitability and highlighting the challenges of operating in multiple currency environments.
Increased Tax and Impairments
Higher tax burdens and asset impairments strain Aspen's financial resources, potentially limiting future investment and growth opportunities.
Aspen Pharmacare (APNHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.17B
Dividend Yield2.15%
Average Volume (3M)710.00
Price to Earnings (P/E)―
Beta (1Y)0.27
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. Volume710
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)0.63
Price to Sales (P/S)1.23
P/FCF Ratio512.59
Enterprise Value/Market Cap26.22
Enterprise Value/Revenue1.91
Enterprise Value/Gross Profit4.34
Enterprise Value/Ebitda31.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Aspen Pharmacare Business Overview & Revenue Model
Company DescriptionAspen Pharmacare Holdings Limited, together with its subsidiaries, manufactures and supplies specialty and branded pharmaceutical products worldwide. It operates in Commercial Pharmaceuticals and Manufacturing segments. The company provides general anesthetics, muscle relaxants, and topical agents under the Anaesthetics brand; and a range of injectable anticoagulants with a focus on low molecular weight heparins, Xa inhibitors, and heparin derivatives under the Thrombosis brand. It also offers branded consumer, prescription, and over-the-counter products under the regional brands, such as Circadin, Foxair, Maltofer, Mybulen, and Zyloric for various types of anesthetic comprises sleeping aid, respiratory, iron supplement, analgesic, and uric acid production inhibitor. In addition, the company manufactures and sells active pharmaceutical ingredients and finished dose form products to third-party customers. The company was founded in 1850 and is headquartered in Durban, South Africa.
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 03, 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 faces significant financial challenges, with declining revenue, profitability, and cash flow. The income statement shows a revenue decline of 4.75% and a negative net profit margin of -2.50%. The balance sheet is relatively stable with a strong equity base, but the negative return on equity and poor cash flow metrics highlight areas needing urgent attention.Income Statement
Aspen Pharmacare's income statement reveals a challenging year with a revenue decline of 4.75% and a negative net profit margin of -2.50% in the latest period. The gross profit margin remains relatively stable at 44.11%, indicating efficient cost management. However, the significant drop in EBIT and EBITDA margins from previous years highlights operational challenges. The company needs to address its declining revenue and profitability to improve its financial health.Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio of 0.43, suggesting a balanced approach to leveraging. However, the negative return on equity of -1.28% indicates that the company is not generating sufficient returns on its equity investments. The equity ratio of 62.45% reflects a strong equity base, providing some stability amidst financial challenges.Cash Flow
Aspen Pharmacare's cash flow statement indicates a severe decline in free cash flow growth by 96.22%, raising concerns about cash generation capabilities. The operating cash flow to net income ratio of 0.29 suggests that cash flow is not adequately supporting net income, while the free cash flow to net income ratio of 0.02 is alarmingly low. The company needs to improve its cash flow management to ensure liquidity and operational sustainability.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 43.36B | 43.36B | 44.71B | 40.71B | 38.61B | 37.77B |
| Gross Profit | 19.13B | 19.13B | 19.42B | 18.41B | 18.31B | 17.79B |
| EBITDA | 2.68B | 2.16B | 9.90B | 10.19B | 9.93B | 8.67B |
| Net Income | -1.08B | -1.08B | 4.40B | 5.23B | 6.49B | 4.81B |
Balance Sheet | ||||||
| Total Assets | 135.89B | 135.89B | 139.16B | 134.28B | 111.38B | 109.68B |
| Cash, Cash Equivalents and Short-Term Investments | 6.41B | 6.41B | 12.34B | 10.91B | 6.18B | 8.55B |
| Total Debt | 36.12B | 36.12B | 36.46B | 29.28B | 22.25B | 24.87B |
| Total Liabilities | 51.00B | 51.00B | 54.29B | 48.05B | 40.43B | 44.06B |
| Stockholders Equity | 84.89B | 84.89B | 84.86B | 86.24B | 70.94B | 65.63B |
Cash Flow | ||||||
| Free Cash Flow | 2.58B | 104.00M | 690.00M | 2.34B | 2.68B | 3.39B |
| Operating Cash Flow | 5.16B | 5.16B | 6.22B | 5.52B | 5.37B | 6.83B |
| Investing Cash Flow | -5.22B | -5.22B | -9.47B | -3.42B | -2.16B | 9.76B |
| Financing Cash Flow | -162.00M | -162.00M | 3.62B | -420.00M | -4.68B | -15.65B |
Aspen Pharmacare Technical Analysis
Positive
6.80
Price Trends
5.78
Positive
5.79
Positive
6.34
Positive
Market Momentum
0.37
Negative
66.73
Neutral
89.76
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APNHY, the sentiment is Positive. The current price of 6.8 is above the 20-day moving average (MA) of 6.16, above the 50-day MA of 5.78, and above the 200-day MA of 6.34, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 66.73 is Neutral, neither overbought nor oversold. The STOCH value of 89.76 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
58 Neutral | $4.15B | 929.58 | ― | ― | 9.50% | ― | |
55 Neutral | $2.93B | -150.15 | -1.86% | ― | 4.54% | -130.59% | |
52 Neutral | $2.60B | 5.51 | 47.54% | ― | -1.35% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $3.17B | -54.22 | -1.18% | 2.15% | -0.03% | -123.67% | |
49 Neutral | $2.02B | -39.02 | -0.65% | 8.48% | -2.55% | 66.00% | |
42 Neutral | $1.39B | 20.54 | ― | ― | 55.38% | ― |
* Healthcare Sector Average
APNHY
Aspen Pharmacare
6.80
-1.79
-20.85%
PRGO
Perrigo Company
14.70
-8.34
-36.20%
SUPN
Supernus Pharmaceuticals
51.17
13.60
36.20%
HCM
HUTCHMED
14.77
0.26
1.79%
AMRX
Amneal Pharmaceuticals
13.20
5.48
70.98%
ALVO
Alvotech
4.73
-8.49
-64.22%
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.