Assertio Therapeutics (ASRT) AI Stock Analysis

• Market Cap: $62.45M
• Dividend Yield: N/A
• Average Volume (3M): 246.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.98
• Revenue Growth: -16.23%
• EPS Growth: 91.83%
• Country: US
• Employees: 58
• Sector: Healthcare
• Sector Strength: 55
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.14
• Shares Outstanding: 95,780,740
• 10 Day Avg. Volume: 166,732
• 30 Day Avg. Volume: 246,818
• 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: 3.27
• Enterprise Value/Revenue: 0.41
• Enterprise Value/Gross Profit: 2.45
• Enterprise Value/Ebitda: -0.80
• 1Y Price Target: $2.80
• Price Target Upside: 330.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 53 Neutral
• Price Target: $0.50 ▼(-23.08%Downside)

Assertio Therapeutics faces significant financial challenges with ongoing losses and operational inefficiencies. Despite some strategic positive moves highlighted in the earnings call and corporate governance improvements, the negative P/E and mixed technical indicators weigh down the overall score.

Positive Factors

Financial Performance

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

Legal and Operational Improvements

Assertio has settled multiple outstanding legal matters and divested a subsidiary, which should reduce operational expenses and free-up management’s time to focus on growth.

Product and Market Strategy

The intent to bring in another branded commercial product for the U.S. market could favorably impact gross margins.

Negative Factors

Competitive Risks

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

Financial Challenges

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

Revenue Guidance Concerns

2025 product revenue guidance represents a 4% year-over-year decline.

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 primarily through the sales of its pharmaceutical products. The company's revenue model is centered around the commercialization of both branded and generic medications, which are distributed through various channels including healthcare providers, pharmacies, and wholesalers. Key revenue streams include product sales from their established drug portfolio targeting neurological and inflammatory conditions. Assertio also engages in strategic partnerships and licensing agreements to expand its market reach and optimize its product offerings. These collaborations may involve co-promotion, co-development, and distribution agreements that contribute to its earnings. Additionally, the company focuses on operational efficiency and cost management to enhance profitability.

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
	EBIT
-33.37M	-24.48M	-243.54M	57.81M	9.42M	-46.92M
	EBITDA
-7.97M	-24.48M	-222.45M	72.53M	38.78M	-3.20M
	Net Income Common Stockholders
-30.12M	-21.58M	-331.94M	109.63M	-1.28M	-28.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
87.33M	100.05M	73.44M	64.94M	36.81M	20.79M
	Total Assets
286.43M	284.73M	286.42M	413.91M	326.55M	303.27M
	Total Debt
38.93M	39.77M	40.91M	66.87M	73.49M	84.10M
	Net Debt
3.92M	-10.82M	-32.53M	1.93M	36.68M	63.32M
	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: Negative
• Last Price: 0.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.65 is below the 20-day moving average (MA) of 0.67, above the 50-day MA of 0.64, and below the 200-day MA of 0.87, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.55 is Neutral, neither overbought nor oversold. The STOCH value of 20.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASRT.

Assertio Therapeutics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPIX	63 Neutral	$82.44M	―	-11.67%	―	5.82%	59.86%
RMTI	55 Neutral	$35.20M	―	-2.12%	―	12.82%	96.46%
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
ASRT	53 Neutral	$62.45M	―	-25.19%	―	-16.23%	91.83%
SCYX	45 Neutral	$34.42M	―	-43.47%	―	-98.13%	-129.06%
DRRX	43 Neutral	$17.85M	―	-203.11%	―	-41.45%	40.69%

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.