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Fundamental analysis: Avadel Pharmaceuticals plc (AVDL)

Awarener score: 3.6

Conclusion

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: a result could not be reached

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

Margins score: 3.2

• AVDL profit margins -on goods and services sold- are usually excellent. They stand better than most rival companies.
• Business profit on sales tends to be extremely poor. It's below average when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually extremely poor. They remain lacking compared to peers.
• Earnings -before income taxes and interests on loans taken- tend to be extremely poor in relation to total revenues. They're still somewhat worse than similar companies.
• Profits -before income taxes- are usually extremely poor considering total sales, and remain below average when measured against rivals.
• Total net profit tends to be extremely poor when confronted to sales. Company stands below average when measured against comparable firms.

Growth score: 1.1

• Avadel Pharmaceuticals plc profit -on goods and services sold- has been shrinking. It's been in a very weak position 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: 1.7

• AVDL 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.
• Business has seen substantial shrinking, despite research and development efforts. It stands a disappointment compared to rival companies.

Profitability score: 2.0

• Avadel Pharmaceuticals plc usually gets very poor returns on the resources it controls. It proves below average 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: 2.4

• AVDL 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 replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is almost average 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 has significantly enlarged the pool of investors in previous years, resulting in more mouths feeding on the pie of profits. It remains close to average when compared 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: 1.0

• Avadel Pharmaceuticals plc 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.
• Current ratio remains a mystery, as there was not sufficient Balance Sheet information. It turns to be unidentifiable against similar firms.
• The relation between debt and assets is unknown to us. It remains undisclosed against rival firms.
• We have not enough inputs to assess how quickly assets can be turned into cash and equivalents. It looks we are not able to reach a conclusion in relation to rivals.
• Quick ratio is unavailable at this moment, due to lacking data. It's a pity we cannot compare it with peer firms.
• A conclusion on cash ratio could not be reached, as we lack inputs, which is unfortunate when trying to measure against similar enterprises.
• Days of sales outstanding are not known, out of lack of data. It still ranks unknown against peers.
• Days of inventory outstanding are not known. It comes up as a big question mark against competitors.
• We could not gauge the normal operating cycle of the company. It happens to be a mystery against peers.
• Unfortunately, we had not enough data to estimate the days of payables outstanding. It ranks unknown against industry peers.
• Cash conversion cycle remains unknown, due to not having enough inputs. It's incomparable against 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.
• There is insufficient data to conclude on the relationship of EBITDA and debt for this company. It ranks unknown against comparable enterprises.
• Fixed assets turnover remains undisclosed. It looks we cannot relate it to similar firms.
• We did not reach a conclusion regarding total assets turnover, as not enough data is currently available. It's still unable to match with peer companies.

Valuation score: 3.2

• Avadel Pharmaceuticals plc reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
• We have not enough data to conclude on the relationship of price versus tangible book value for this company. It remains therefore unknown compared to peers.
• In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could get, it reinvested in the business, which stands slightly worse than similar companies.
• In the past years the company hardly generated enough genuine funds to cover up for its business needs. Business prospects should improve enough to be in a better position to reward investors. It's still almost 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 close to average when compared to peer ventures.
• The company has neither net debt nor net cash. It may borrow extra money if it wishes so, or start cumulating cash for future uses. It looks slightly better than 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.
• Price-to-Sales ratio is currently an incognita. It looks incomparable with rival firms.
• We have not enough information on the relation between current stock price and accounting book value. The company remains a mystery against peer firms.
• In the past twelve months, the operating business lost significant money. It happens to be below average when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a low earnings power ability when measured against the current stock price and financial position. It's still close to average when compared to peer companies.

Total score: 2.1

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Awarener score: 3.6

Conclusion

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