Aurinia Pharmaceuticals (AUPH) AI Stock Analysis

• Market Cap: $2.01B
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.46
• Revenue Growth: 20.62%
• EPS Growth: N/A
• Country: US
• Employees: 130
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.23
• Shares Outstanding: 131,840,560
• 10 Day Avg. Volume: 1,075,768
• 30 Day Avg. Volume: 1,090,865
• PEG Ratio: -2.08
• Price to Book (P/B): 3.40
• Price to Sales (P/S): 5.46
• P/FCF Ratio: 29.13
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 4.62
• Enterprise Value/Gross Profit: 5.21
• Enterprise Value/Ebitda: 12.00
• 1Y Price Target: $16.50
• Price Target Upside: 10.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.92
• Revenue Forecast (FY): $326.80M

• Rating: 79 Outperform
• Price Target: $16.50 ▲(10.96% Upside)

Aurinia Pharmaceuticals' strong financial performance and positive earnings call are the most significant factors driving the stock's score. The company's robust revenue growth, profitability improvements, and promising clinical developments are key strengths. However, technical indicators suggest the stock may be overbought, and its high P/E ratio indicates a premium valuation, which could limit further upside.

Positive Factors

Revenue Growth

The strong growth in LUPKYNIS sales indicates robust demand and effective market penetration, supporting long-term revenue expansion and financial stability.

Cash Flow Generation

Significant improvement in cash flow generation enhances financial flexibility, enabling strategic investments and reducing reliance on external financing.

Clinical Developments

Progress in clinical developments for aritinercept suggests potential for future product diversification and revenue streams, strengthening the company's pipeline.

Negative Factors

Regulatory Challenges

Regulatory inquiries can lead to delays or additional compliance costs, impacting the company's ability to maintain product momentum and market confidence.

Legal Proceedings

Ongoing legal disputes may divert management attention and resources, potentially affecting strategic focus and operational efficiency.

Historical Volatility

Past financial volatility could signal underlying operational risks, potentially affecting future performance consistency and investor confidence.

Aurinia Pharmaceuticals Business Overview & Revenue Model

Company Description

Aurinia Pharmaceuticals Inc., a commercial-stage biopharmaceutical company, focuses on developing and commercializing therapies to treat various diseases with unmet medical need in the United States and internationally. The company offers LUPKYNIS for the treatment of adult patients with active lupus nephritis. It has a collaboration and license agreement with Otsuka Pharmaceutical Co., Ltd. The company is headquartered in Victoria, Canada.

How the Company Makes Money

Aurinia Pharmaceuticals generates revenue primarily through the sale of its flagship product, LUPKYNIS, which is prescribed to patients with lupus nephritis. The company has established a revenue model that includes direct sales to healthcare providers, as well as potential partnerships and collaborations with pharmaceutical distributors and other stakeholders in the healthcare sector. Additionally, Aurinia may receive milestone payments and royalties from licensing agreements related to its product and technology. The company's financial performance can also be influenced by factors such as market demand for lupus nephritis treatments, reimbursement policies from insurance providers, and the overall competitive landscape in the biopharmaceutical industry.

Aurinia Pharmaceuticals Financial Statement Overview

Summary

Aurinia Pharmaceuticals demonstrates a strong financial recovery with significant improvements in revenue growth, profitability, and cash flow generation. The company has effectively managed its debt levels, and its return on equity has improved substantially. While historical volatility in financial metrics presents some risk, the current trajectory suggests a positive outlook for the company.

Income Statement

Aurinia Pharmaceuticals has shown strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 2.19% and a significant improvement in profitability metrics. The gross profit margin is robust at 89.51%, and the net profit margin has improved to 23.31% from a low of -80.71% in 2022. EBIT and EBITDA margins have also turned positive, indicating improved operational efficiency. However, the company has experienced volatility in past years, which poses a risk.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.24. Return on equity has improved significantly to 16.72%, showcasing effective use of equity to generate profits. The equity ratio is healthy, indicating a strong capital structure. However, the company has had periods of negative ROE in the past, which could indicate potential risks if not managed well.

Cash Flow

Aurinia Pharmaceuticals has shown a strong free cash flow growth rate of 29.75% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 1.18 suggests efficient cash conversion. The free cash flow to net income ratio is nearly 1, indicating that the company is effectively converting its profits into cash. Past fluctuations in cash flow metrics highlight potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	265.81M	235.13M	175.51M	134.03M	45.60M	50.12M
Gross Profit	236.06M	206.88M	161.37M	128.37M	44.51M	50.12M
EBITDA	102.42M	31.73M	-63.05M	-103.65M	-177.44M	-102.92M
Net Income	77.84M	5.75M	-78.02M	-108.18M	-180.97M	-102.68M
Balance Sheet
Total Assets	527.53M	550.64M	548.06M	470.86M	543.37M	463.66M
Cash, Cash Equivalents and Short-Term Investments	351.81M	358.48M	350.49M	389.39M	466.08M	398.33M
Total Debt	78.21M	79.37M	97.61M	8.09M	8.74M	8.41M
Total Liabilities	161.76M	173.17M	170.11M	65.42M	64.28M	55.91M
Stockholders Equity	365.77M	377.48M	377.95M	405.44M	479.09M	407.75M
Cash Flow
Free Cash Flow	119.87M	44.11M	-34.18M	-79.82M	-159.19M	-77.20M
Operating Cash Flow	120.10M	44.39M	-33.46M	-79.53M	-157.69M	-69.86M
Investing Cash Flow	43.21M	39.26M	-6.71M	-60.63M	-103.87M	-158.19M
Financing Cash Flow	-127.27M	-49.09M	-5.13M	2.43M	221.11M	194.38M

Aurinia Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.87
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AUPH, the sentiment is Neutral. The current price of 14.87 is below the 20-day moving average (MA) of 15.68, below the 50-day MA of 15.55, and above the 200-day MA of 11.28, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 41.33 is Neutral, neither overbought nor oversold. The STOCH value of 19.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AUPH.

Aurinia Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUPH	79 Outperform	$2.01B	26.50	20.65%	―	20.62%	―
MNKD	64 Neutral	$1.72B	59.17	―	―	17.44%	24.15%
CLDX	53 Neutral	$1.75B	-7.60	-32.44%	―	-73.94%	-31.70%
BCRX	52 Neutral	$1.43B	-151.59	―	―	45.38%	92.85%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SRPT	51 Neutral	$2.39B	-7.37	-21.37%	―	47.15%	-311.26%
IMCR	47 Neutral	$1.67B	-56.06	-7.52%	―	27.51%	38.72%