Assertio Therapeutics (ASRT) AI Stock Analysis

• Market Cap: $71.79M
• Dividend Yield: N/A
• Average Volume (3M): 260.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -16.23%
• EPS Growth: 91.83%
• Country: US
• Employees: 58
• Sector: Healthcare
• Sector Strength: 37
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.14
• Shares Outstanding: 95,780,740
• 10 Day Avg. Volume: 272,703
• 30 Day Avg. Volume: 260,707
• PEG Ratio: 0.05
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.02
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 0.13
• Enterprise Value/Gross Profit: 0.81
• Enterprise Value/Ebitda: -0.26
• 1Y Price Target: $2.80
• Price Target Upside: 278.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 54 Neutral
• Price Target: $1.00 ▲(35.14%Upside)

Assertio Therapeutics' stock faces a challenging outlook with significant financial performance issues, particularly concerning profitability and valuation. While there are some positive technical indicators and strategic corporate actions, the overall risk associated with ongoing losses and financial instability weighs heavily on the stock's potential.

Positive Factors

Financial Performance

Management reaffirmed its top-line revenue guidance range of $108-123M for 2025, indicating confidence in future growth.

Financial Position

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

Sales Growth

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

Negative Factors

Competition

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

Financial Challenges

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

Operating Expenses

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

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 faces challenges in maintaining revenue growth and profitability, with a declining trend in revenue and consistent operational losses. The balance sheet shows moderate leverage but declining equity, and cash flow generation is mixed with fluctuations in free cash flow.

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

Assertio Therapeutics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.74
• 50DMA: Positive
• 100DMA: Positive
• 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 0.74 is above the 20-day moving average (MA) of 0.68, above the 50-day MA of 0.67, and below the 200-day MA of 0.80, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 64.60 is Neutral, neither overbought nor oversold. The STOCH value of 79.01 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
RMTI	61 Neutral	$38.28M	―	-2.12%	―	12.82%	96.46%
CPIX	57 Neutral	$50.27M	―	-11.67%	―	5.82%	59.86%
ASRT	54 Neutral	$71.79M	―	-25.19%	―	-16.23%	91.83%
Sector *	52 Neutral	$7.60B	0.11	-62.95%	2.07%	16.16%	0.31%
OPTN	50 Neutral	$97.22M	―	75.79%	―	10.58%	34.44%
SCYX	43 Neutral	$28.80M	―	-43.47%	―	-98.13%	-129.06%
DRRX	40 Underperform	$18.24M	―	-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.