Assertio Therapeutics (ASRT) AI Stock Analysis

• Market Cap: $64.63M
• Dividend Yield: N/A
• Average Volume (3M): 215.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: -16.23%
• EPS Growth: 91.83%
• Country: US
• Employees: 58
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.14
• Shares Outstanding: 95,780,740
• 10 Day Avg. Volume: 249,925
• 30 Day Avg. Volume: 215,829
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.58
• Enterprise Value/Market Cap: 3.16
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 2.45
• Enterprise Value/Ebitda: -0.80
• 1Y Price Target: $2.80
• Price Target Upside: 317.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 55 Neutral
• Price Target: $0.50 ▼(-25.37%Downside)

The overall score reflects significant challenges in financial performance, with ongoing losses and operational inefficiencies. Technical analysis shows a neutral trend, while valuation concerns persist due to a negative P/E ratio. Earnings call insights provide some optimism with strategic initiatives, but declining sales and increased expenses remain issues.

Positive Factors

Financial Stability

The company is generating cash and does not require additional financing, indicating a strong financial position.

Product Development

Management continues to pursue acquisitions of mature and established products, which could provide promotional synergies with Rolvedon.

Revenue Performance

Assertio reported total revenue that exceeded consensus estimates, showcasing strong performance in certain segments.

Negative Factors

Competition Risks

Risks include greater-than-anticipated levels of competition and potential failure to optimize key assets' value in non-U.S. markets.

Expense Management

Operating expenses of $34.0M exceeded our estimate of $24.8M.

Financial Challenges

The company recorded a higher-than-expected net loss for the full year 2024, highlighting financial challenges.

Assertio Therapeutics Business Overview & Revenue Model

Company Description

Assertio Holdings, Inc., a specialty pharmaceutical company, provides medicines in the areas of neurology, hospital, and pain and inflammation. Its pharmaceutical products include INDOCIN, an oral solution and a suppository form for the treatment of moderate to severe rheumatoid arthritis, including acute flares of chronic disease; ankylosing spondylitis and osteoarthritis; and acute painful shoulder and gouty arthritis. It also provides CAMBIA, a non-steroidal anti-inflammatory drug (NSAID) for the treatment of migraine, nausea, photophobia, and phonophobia; Zipsor, a NSAID for relief of mild to moderate acute pain; SPRIX, a NSAID for the short term management of moderate to moderately severe pain that requires analgesia at the opioid level; and Otrexup, a single-dose auto-injector containing a prescription medicine and methotrexate that is used to treat adults with severe, active rheumatoid arthritis, and children with active polyarticular juvenile idiopathic arthritis. The company was formerly known as Assertio Therapeutics, Inc. and changed its name to Assertio Holdings, Inc. in May 2020. Assertio Holdings, Inc. was incorporated in 1995 and is headquartered in Lake Forest, Illinois.

How the Company Makes Money

Assertio Therapeutics generates revenue through the sale and distribution of its pharmaceutical products, which are primarily focused on pain management and central nervous system disorders. The company's revenue model is based on the commercialization of its proprietary drug formulations and strategic acquisitions of complementary assets. Assertio often partners with other pharmaceutical companies for the co-promotion and licensing of its products, expanding its market reach and enhancing its revenue streams. Additionally, Assertio may engage in strategic collaborations and licensing agreements to further bolster its product portfolio and drive sales growth.

Assertio Therapeutics Financial Statement Overview

Summary

Assertio Therapeutics is struggling with negative EBIT and net income, indicating operational inefficiencies. Although there is moderate leverage and some strength in cash flow generation, consistent losses and declining equity highlight ongoing financial challenges.

Income Statement

Assertio Therapeutics has faced challenges in maintaining revenue growth and profitability. The Gross Profit Margin is reasonable, but the company has struggled with negative EBIT and Net Income in recent periods, indicating operational inefficiencies. Revenue has shown a declining trend, and consistent losses highlight ongoing challenges in achieving profitability.

Balance Sheet

The company's balance sheet shows moderate leverage with a declining Debt-to-Equity Ratio. However, there has been a decrease in Stockholders' Equity, indicating potential financial stress. The Equity Ratio is stable, but the negative Return on Equity (ROE) suggests difficulties in generating returns for shareholders.

Cash Flow

Cash flows reveal a mixed picture. While operating cash flows have been positive, indicating some capacity to generate cash from operations, free cash flow has seen fluctuations. The Free Cash Flow to Net Income Ratio suggests challenges in translating profits into cash, with recent periods showing negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	119.00M	124.96M	152.07M	156.23M	111.01M	106.28M
Gross Profit	83.16M	85.73M	125.05M	137.49M	95.18M	86.40M
EBITDA	-7.97M	-24.48M	-222.45M	72.53M	38.78M	-3.20M
Net Income	-30.12M	-21.58M	-331.94M	109.63M	-1.28M	-28.14M
Balance Sheet
Total Assets	286.43M	284.73M	286.42M	413.91M	326.55M	303.27M
Cash, Cash Equivalents and Short-Term Investments	87.33M	100.05M	73.44M	64.94M	36.81M	20.79M
Total Debt	38.93M	39.77M	40.91M	66.87M	73.49M	84.10M
Total Liabilities	177.90M	163.65M	148.42M	188.19M	224.13M	247.76M
Stockholders Equity	108.53M	121.08M	138.00M	225.72M	102.41M	55.51M
Cash Flow
Free Cash Flow	6.36M	26.41M	48.98M	78.32M	5.47M	-65.58M
Operating Cash Flow	6.36M	26.41M	49.60M	78.60M	5.52M	-65.57M
Investing Cash Flow	-51.85M	-48.91M	3.10M	-42.67M	-18.52M	512.80M
Financing Cash Flow	-255.00K	-350.00K	-44.20M	-7.79M	29.03M	-468.55M

Assertio Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.67
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASRT, the sentiment is Positive. The current price of 0.67 is above the 20-day moving average (MA) of 0.65, above the 50-day MA of 0.65, and below the 200-day MA of 0.84, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 56.19 is Neutral, neither overbought nor oversold. The STOCH value of 59.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASRT.

Assertio Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	HK$15.31B	5.72	-7.43%	4.61%	11.60%	-21.06%
ASRT	55 Neutral	$64.63M	―	-25.19%	―	-16.23%	91.83%
RMTI	54 Neutral	$27.96M	―	-2.12%	―	12.82%	96.46%
CPIX	50 Neutral	$51.02M	―	-11.67%	―	5.82%	59.86%
DRRX	45 Neutral	$20.69M	―	-203.11%	―	-41.45%	40.69%
SCYX	40 Underperform	$27.35M	―	-43.47%	―	-98.13%	-129.06%

Assertio Therapeutics Corporate Events

Assertio Therapeutics Approves Key Proposals at Annual Meeting

At its recent Annual Meeting, Assertio Therapeutics‘ stockholders approved several key proposals, including an amendment to the 2014 Omnibus Incentive Plan, increasing the number of shares available for issuance by 8,200,000. Additionally, the stockholders elected seven directors to serve until the 2026 Annual Meeting, approved executive compensation, authorized a potential reverse stock split, and ratified Grant Thornton LLP as the independent auditor for 2025. These decisions reflect strategic moves to enhance the company’s operational flexibility and governance structure.

The most recent analyst rating on (ASRT) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Assertio Therapeutics stock, see the ASRT Stock Forecast page.