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Is this Large Market Cap Stock target price reasonable for Akorn, Inc. (NASDAQ:AKRX)?

The company in question is, Akorn, Inc. (NASDAQ:AKRX) currently with a stock price of 27.85 (-0.85% today). The market cap for Akorn, Inc. is 3567.43, and is in the sector Healthcare, and Drugs – Generic industry. The target price for Akorn, Inc. is 36.83. Currently Akorn, Inc. is trading with a P/E of 18.8, and a forward P/E of 11.91. Average volume for Akorn, Inc. is 1172.03 and so far today it is 648556.

Performance in the last year for Akorn, Inc. has been 1.33%. For EPS growth, Akorn, Inc. has seen a growth of 832.80%, and is looking to grow in the next year to 8.61%. More long term stats show that EPS growth has been 41.00% over the last five years and could be 8.07% for the next five years. Akorn, Inc. has seen sales growth quarter over quarter at 27.10%, with EPS growth quarter over quarter at 86.70%. The 20-day simple moving average is -1.48%, with the 200-day simple moving average coming to -0.47%.

Since the IPO date for Akorn, Inc. on the 08/02/2002, Akorn, Inc. has seen performance year to date to be -24.71%. With Akorn, Inc. trading at 27.85, the dividend yield is *TBA, and the EPS is 1.49.

So could Akorn, Inc., be undervalued? Well as said before P/E is 18.8. The PEG is 2.33, P/S is 3.29 and the P/B is at 4.38. The P/cash is 22.61, with P/free cash flow at 34.24.

Akorn, Inc. ability to deal with debt shows that the current ratio is 4.3, and the quick ratio is 2.9. This is with long term debt/equity at 1.04, and total debt/equity at 1.04.

In terms of margins, Akorn, Inc. has a gross margin of 61.90%, an operating margin of 30.90% and a profit margin of 17.00%.Payout ratio for Akorn, Inc. is 0.00%. Return on assets come to 9.30% with return on investment coming to 12.80%.

Insider ownership for Akorn, Inc., is at 2.90% and institutional ownership comes to 91.10%. Outstanding shares are at 127. While shares float is 97.7. The float short is currently 10.22%, and short ratio is 8.52.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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