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Fundamental analysis: Aerie Pharmaceuticals, Inc. (AERI)

Awarener score: 4.2

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very poor), the business stability (Bottom) and growth (Superb), and the company's inclination to return cash to the stockholders (Lacking).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

  • Business growth could not be estimated, due to not enough input data. It's been unavailable to compare with peer companies.
  • Aerie Pharmaceuticals, Inc. business stability could not be estimated, due to insufficient input data. It looks we cannot compare it to rivals.

Margins score: 2.5

  • AERI profit margins -on goods and services sold- are usually huge. They stand better than most rival companies.
  • Business profit on sales tends to be pauper. It's weak when measured against competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually destitute. They remain in a weak position compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be pauper in relation to total revenues. They're still mediocre against similar companies.
  • Profits -before income taxes- are usually destitute considering total sales, and remain weak when measured against rivals.
  • Total net profit tends to be pauper when confronted to sales. Company stands weak when measured against comparable firms.

Growth score: 2.3

  • Aerie Pharmaceuticals, Inc. profit -on goods and services sold- has been growing at an extremely fast pace. It's been in good shape compared to competitors.
  • In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
  • In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
  • In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
  • In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
  • In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
  • The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 3.7

  • AERI had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
  • Research and development expenses consume a substantial portion of revenues. It's weak when measured against competitors.
  • The company shows business growth in relation to research and development efforts. It stands close to average when compared to rival companies.

Profitability score: 2.0

  • Aerie Pharmaceuticals, Inc. usually gets very poor returns on the resources it controls. It proves weak when measured against peer firms.
  • Due to insufficient track history, we were unable to estimate typical returns on invested capital (ROIC). They remain undisclosed in relation to similar companies.
  • Normal return on equity (ROE) is unavailable at this time, because of not enough yearly inputs to calculate. It ranks unknown against competitors.
  • In the past, got very poor returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's below average when measured against comparable enterprises.

Usage of Funds score: 3.8

  • AERI on average doesn't generate genuine funds, so to buy or replace property, plants and equipment must either burn existing cash or increase debt. It stands below average when measured against rival firms.
  • The company is usually heavily investing in new property, plant, and equipment, to expand its operating capabilities, which is great when measured against industry peers.
  • In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
  • The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
  • As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
  • The company usually enlarges quite a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains rather normal in relation to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in a very weak position compared to rivals.
  • We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 3.8

  • Aerie Pharmaceuticals, Inc. has not disclosed intangibles assets, so we could not reach a meaningful conclusion on this metric. It happens to be a not known variable when measured with peer companies.
  • The company has roughly triple short-term resources than short-term obligations. Liquidity concerns are most likely unimportant. It turns to be close to average when compared to similar firms.
  • Most resources controlled were provided for with financial debt. Creditors have more claims on the company than shareholders. Unless the company is a financial institution that takes deposits, the situation might be very risky. It remains bottom tier against rival firms.
  • A substantial portion of resources controlled are already cash or short-term investments, which is better for liquidity. It looks more than average in relation to rivals.
  • For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's rather normal in relation to peer firms.
  • For every dollar of short-term obligations, the company has roughly another of cash and equivalents, which is slightly better than similar enterprises.
  • Usually, sales are on somewhat more than three months credit. It still ranks below average when measured against peers.
  • Normally has more than six months of sales worth in inventory. It comes up as in a very weak position compared to competitors.
  • On average, it takes plenty of months from the purchase to charging customers. It happens to be worse than most peers.
  • On average pays suppliers approximately four months or higher after the purchase. It ranks encouraging in relation to industry peers.
  • The company pays its suppliers plenty of months before charging its customers, so there's a lot of money invested in working capital. It's a disappointment compared to similar companies.
  • Has usually been losing money on the business, so net interest expenses must be paid by increasing borrowings, which is unsustainable in the long run. The situation is very risky for both creditors and shareholders, profitability must increase. It stands bottom tier against rival firms.
  • Business has usually been operated at a loss. Unless prospects improve, the company is no position to decrease loans taken levels but by additional shareholders' funding. Profitability must improve. It ranks last-in-rank when measured against comparable enterprises.
  • Revenues are somewhat low in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks lacking compared to similar firms.
  • Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat better than peer companies.

Valuation score: 3.0

  • Aerie Pharmaceuticals, Inc. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
  • In the past twelve months, the company generated some good free funds in relation to the stock price, which stands slightly worse than similar companies.
  • The company usually consumes more funds than can genuinely generate. Business needs are meet by borrowing money or consuming preexistent cash, which can only keep up until a certain limit. Unless the company is driving business growth, genuine profitability may be brought into question. It's still below average when measured against industry firms.
  • In the past twelve months, the company has enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among somewhat more stockholders. It came up a slight improvement compared to peer ventures.
  • The company is somewhat indebted, loan repayment needs to be taken into account. It looks mediocre against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a high relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks rather normal in relation to rival firms.
  • There's no accounting equity, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains bottom tier against peer firms.
  • In the past twelve months, the operating business lost some money. It happens to be similar to industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a very low earnings power ability when measured against the current stock price and financial position. Profitability is in dispute. It's still lacking compared to peer companies.

Total score: 3.3


AERI logos

Company at a glance: Aerie Pharmaceuticals, Inc. (AERI)

Sector, industry: Healthcare, Drug Manufacturers—Specialty & Generic

Market Cap: 0.75 billions

Revenues TTM: 0.21 billions

Aerie Pharmaceuticals, Inc., a pharmaceutical company, focuses on the discovery, development, and commercialization of ophthalmic therapies for open-angle glaucoma, dry eye, diabetic macular edema, and wet age-related macular degeneration in the United States. Its products include Rhopressa, a once-daily eye drop to reduce elevated intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension; and Rocklatan, a once-daily fixed-dose combination of Rhopressa and latanopros to reduce IOP to treat patients with open-angle glaucoma or ocular hypertension. The company also develops AR-15512 to treat signs and symptoms of dry eye; and AR-1105 and AR-14034 SR sustained-release implants focused on retinal diseases. It has a collaborative research, development, and licensing agreement with DSM Biomedical. Aerie Pharmaceuticals, Inc. was incorporated in 2005 and is headquartered in Durham, North Carolina.

Awarener score: 4.2

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very poor), the business stability (Bottom) and growth (Superb), and the company's inclination to return cash to the stockholders (Lacking).