Assertio Therapeutics (ASRT) AI Stock Analysis

• Market Cap: $76.78M
• Dividend Yield: N/A
• Average Volume (3M): 229.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: -11.42%
• EPS Growth: 89.01%
• Country: US
• Employees: 58
• Sector: Healthcare
• Sector Strength: 52
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.17
• Shares Outstanding: 96,239,624
• 10 Day Avg. Volume: 184,412
• 30 Day Avg. Volume: 229,395
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.12
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.11
• Enterprise Value/Ebitda: -0.50
• 1Y Price Target: $2.50
• Price Target Upside: 212.50% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 58 Neutral
• Price Target: $1.00 ▲(25.00% Upside)

Assertio Therapeutics' overall stock score is primarily impacted by financial challenges, including declining revenues and profitability issues. Positive technical indicators provide some support, but valuation concerns due to negative earnings and lack of dividends weigh heavily. The earnings call offered mixed insights, with some strategic successes but also notable challenges.

Positive Factors

Financial Performance

Assertio's total revenue of $29.2M exceeded expectations, showcasing strong performance despite challenges.

Growth Potential

Rolvedon sales growth and an increasing prescriber base are seen as a positive momentum for the company.

Negative Factors

Financial Challenges

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

Product Sales Concerns

Product sales reflect competition and generic erosion, although flagship franchise growth potential remains.

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 generates revenue primarily through the sale of its proprietary pharmaceutical products. The company markets its medications directly to healthcare providers, pharmacies, and hospitals, establishing a strong presence in the pain management sector. Key revenue streams include sales of its core products, which may include prescription drugs for acute and chronic pain, as well as other therapeutic areas. Additionally, Assertio may engage in strategic partnerships or collaborations with other pharmaceutical companies to co-develop or co-market products, which can provide additional revenue through shared sales and licensing agreements. The company's revenue is also supported by ongoing efforts in product development and marketing strategies aimed at expanding its market reach and enhancing the adoption of its therapeutics.

Assertio Therapeutics Financial Statement Overview

Summary

Assertio Therapeutics is experiencing financial challenges with declining revenues and profitability issues. Despite a strong gross profit margin and improved cash flow, the negative net income and return on equity highlight the need for strategic changes.

Income Statement

Assertio Therapeutics has experienced declining revenue over recent periods, with a negative revenue growth rate of -1.6% in the TTM. The company also faces significant profitability challenges, as evidenced by negative net profit margins and EBIT margins. Despite a relatively strong gross profit margin of 67.87% in the TTM, the overall income statement reflects financial instability and a need for strategic improvements.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.42 in the TTM, indicating manageable leverage. However, the return on equity is negative, reflecting ongoing losses and a need to improve profitability. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth, with a remarkable increase of 183.97% in the TTM. The operating cash flow to net income ratio is positive, suggesting that the company is generating cash despite net losses. However, the sustainability of this cash flow improvement remains uncertain given the negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.10M	124.96M	152.07M	156.23M	111.01M	106.28M
Gross Profit	79.47M	85.73M	125.05M	137.49M	95.18M	86.40M
EBITDA	-18.29M	-24.48M	-222.45M	72.53M	38.78M	-3.20M
Net Income	-42.80M	-21.58M	-331.94M	109.63M	-1.28M	-28.14M
Balance Sheet
Total Assets	273.78M	284.73M	286.42M	413.91M	326.55M	303.27M
Cash, Cash Equivalents and Short-Term Investments	98.18M	100.05M	73.44M	64.94M	36.81M	20.79M
Total Debt	45.79M	39.77M	40.91M	67.27M	75.87M	89.60M
Total Liabilities	180.48M	163.65M	148.42M	188.19M	224.13M	247.76M
Stockholders Equity	93.30M	121.08M	138.00M	225.72M	102.41M	55.51M
Cash Flow
Free Cash Flow	18.07M	26.41M	48.98M	78.32M	5.47M	-65.58M
Operating Cash Flow	18.07M	26.41M	49.60M	78.60M	5.52M	-65.57M
Investing Cash Flow	-15.47M	-48.91M	3.10M	-42.67M	-18.52M	512.80M
Financing Cash Flow	-249.00K	-350.00K	-44.20M	-7.79M	29.03M	-468.55M

Assertio Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 0.8 is above the 20-day moving average (MA) of 0.79, above the 50-day MA of 0.73, and above the 200-day MA of 0.75, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 55.80 is Neutral, neither overbought nor oversold. The STOCH value of 42.59 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
ASRT	58 Neutral	$76.78M	―	-38.40%	―	-11.42%	89.01%
RMTI	54 Neutral	$55.78M	―	-8.65%	―	-6.79%	61.56%
CPIX	52 Neutral	$49.52M	―	-10.79%	―	11.34%	71.13%
Sector *	51 Neutral	$7.95B	-0.40	-42.50%	2.21%	22.29%	-1.85%
OPTN	50 Neutral		―		―	10.58%	34.44%
DRRX	45 Neutral	$59.31M	―	-291.74%	―	-62.57%	11.60%
SCYX	44 Neutral	$37.31M	―	-37.22%	―	-66.30%	50.52%

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.