ATRS has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
ATRS has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
As of Mar22, Antares Pharma's earnings power value is $0.39. *
* GuruFocus does not store EPV value into our database if Average Maintenance CAPEX is 0.
Margin of Safety is -1339.33
The basic concept of EPV is that one should value a stock based on the current free cash flow of a company and not on future projections which may, or may not, come true. It is arguably a better way to analyze stocks than Discounted Cash Flow analysis that relies on highly speculative growth assumptions many years into the future. Assumption: Current profitability is sustainable.
The historical data trend for Antares Pharma's Earnings Power Value (EPV) can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Antares Pharma Annual Data | |||||||||||||||||||||
Trend | Dec12 | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | |||||||||||
Earnings Power Value (EPV) | Get a 7-Day Free Trial | -1.77 | -1.61 | -0.98 | -0.86 | 0.21 |
Antares Pharma Quarterly Data | ||||||||||||||||||||
Jun17 | Sep17 | Dec17 | Mar18 | Jun18 | Sep18 | Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | |
Earnings Power Value (EPV) | Get a 7-Day Free Trial | -0.55 | -0.27 | 0.11 | 0.21 | 0.39 |
For the Medical Instruments & Supplies subindustry, Antares Pharma's Earnings Power Value (EPV), along with its competitors' market caps and Earnings Power Value (EPV) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Medical Devices & Instruments industry and Healthcare sector, Antares Pharma's Earnings Power Value (EPV) distribution charts can be found below:
* The bar in red indicates where Antares Pharma's Earnings Power Value (EPV) falls into.
Earnings Power Value also known as just Earnings Power is a valuation technique popularised by Bruce Greenwald, an authority on value investing at Columbia University. It is arguably a better way to analyze stocks than Discounted Cash Flow analysis that relies on highly speculative growth assumptions many years into the future.
The basic concept of EPV is that one should value a stock based on the current free cash flow of a company and not on future projections which may, or may not, come true. This valuation tool excludes the potential growth that a company may have so that needs to be looked at separately. Since future growth is excluded from the analysis, only the maintenance capital expenditures are subtracted from after-tax EBIT (earnings before interest and taxes) and growth capex is ignored.
Antares Pharma's "Earning Power" Calculation:
Average of Last 20 Quarters | Last Quarter | |
Revenue | 121.0 | |
DDA | 2.9 | |
Operating Margin % | -5.60 | |
SGA * 25% | 14.0 | |
Tax Rate % | -41.73 | |
Maintenance Capex | 7.0 | |
Cash and Cash Equivalents | 62.2 | |
Short-Term Debt | 2.5 | |
Long-Term Debt | 23.0 | |
Shares Outstanding (Diluted) | 170.1 |
1. Start with "Earnings" not including accounting adjustments (one-time charges not excluded unless policy has changed). "Earnings" are "Operating Income.
2. Look at average margins over a business/Industry cycle: Average Operating Margin = -5.60%
To normalize margins and eliminate the effects on profitability of valuing the firm at different points in the business cycle, it is usually best to take a long-term average of operating margins. Ideally this would be as long as 10 years and include at least one economic downturn. However, since most of companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year margin.
3. Multiply average margins by sustainable revenues and then adjust for maintenance SGA. This yields "normalized" EBIT:
To be conservative, GuruFocus uses an average of the 5 year revenues as the sustainable revenue.
EPV analysis recognises that part of SG&A expenditure is made to maintain and replace the existing assets, while part is made to grow sales. Since EPV is only interested in what it costs a going concern to maintain its existing asset base, it adds back a percentage of SG&A (between 15% and 50% - this is a matter of judgment and industry knowledge) to make up for the fact that some of this expenditure went to fund growth and shouldn't be accounted for. To start off, we assume 25% for the sake of prudence.
Sustainable Revenue = $121.0 Mil, Average Operating Margin = -5.60%, Average Adjusted SGA = 14.0,
therefore "Normalized" EBIT = Sustainable Revenue * Average Operating Margin + Average Adjusted SGA = 121.0 * -5.60% +14.0 = $7.224734904 Mil.
4. Multiply by one minus Average Tax Rate (NOPAT):
Same as average operating margin calculation, GuruFocus takes an average of the 5 years tax rates.
Average Tax Rate = -41.73%, and "Normalized" EBIT = $7.224734904 Mil,
therefore After-tax "Normalized" EBIT = "Normalized" EBIT * ( 1 - Average Tax Rate ) = 7.224734904 * ( 1 - -41.73% ) = $10.239508408416 Mil.
5. Add back Excess Depreciation (after tax at 1/2 average tax rate). This yields "normalized" Earnings:
Excess Depreciation = Average DDA * % of Excess Depreciation (after tax at 1/2 average tax rate) = 2.9 * 0.5 * -41.73% = $-0.598803975 Mil.
"Normalized" Earnings = After-tax "Normalized" EBIT + Excess Depreciation = 10.239508408416 + -0.598803975 = $9.6407044334156 Mil.
6. Adjusted for Maintenance Capital Expenditure:
First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Third, calculate Capital Expenditure (positive) - percentage of Net PPE as of corresponding Revenue * revenue increase.
If [Capital Expenditure (positive) - percentage of Net PPE as of corresponding Revenue * revenue increase] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - percentage of Net PPE as of corresponding Revenue * revenue increase] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - percentage of Net PPE as of corresponding Revenue * revenue increase.
Fourth, GuruFocus uses an average of the 5 year maintenance capital expenditures as maintenance CAPEX.
Antares Pharma's Average Maintenance CAPEX = $7.0 Mil *.
* GuruFocus does not store EPV value into our database if Average Maintenance CAPEX is 0.
7. Investors require a return of "WACC" for the risk they are taking: WACC = 9%
8. Antares Pharma's current cash and cash equivalent = $62.2 Mil.
Antares Pharma's current interest bearing debt = Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation = 23.0 + 2.5 = $25.489 Mil.
Antares Pharma's current Shares Outstanding (Diluted Average) = 170.1 Mil.
Antares Pharma's Earnings Power Value (EPV) for Mar22 is calculated as:
EPV | = | ( ( Norm. Earnings | - | Maint. CAPEX *) | / | WACC | + | CashandEquiv | - | Int. Bearing Debt ) | / | Shares Outstanding (Diluted Average) |
= | ( ( 9.6407044334156 | - | 7.0) | / | 9% | + | 62.2 | - | 25.489 ) | / | 170.1 | |
= | 0.39 |
Margin of Safety (EPV) | = | ( Earnings Power Value (EPV) | - | Current Price ) | / | Earnings Power Value (EPV) |
= | ( 0.3883744606839 | - | 5.59 ) | / | 0.3883744606839 | |
= | -1339.33% |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* GuruFocus does not store EPV value into our database if Average Maintenance CAPEX is 0.
Antares Pharma (NAS:ATRS) Earnings Power Value (EPV) Explanation
Assumption: Current profitability is sustainable.
Earnings power value (EPV) uses a very basic equation which assumes no growth, although it does rely on an assumption about the cost of capital as well as the fact that current earnings are sustainable. It also involves several adjustments to clean up the underlying Earnings figures.
Be Aware
Though using today's earnings in calculating Earnings Power Value, GuruFocus is normalizing these earnings to the business cycle. This eliminates the effects on profitability of valuing the firm at different points in the business cycle. This means that we are considering the average earnings over 5 years.
Thank you for viewing the detailed overview of Antares Pharma's Earnings Power Value (EPV) provided by GuruFocus.com. Please click on the following links to see related term pages.
Karen L. Smith | director | C/O JAZZ PHARMACEUTICALS PLC, 5TH FL, WATERLOO EXCHANGE, WATERLOO RD, DUBLIN L2 4 L2 |
Carmen B Volkart | director | C/O MODULAR MEDICAL, INC., 16772 WEST BERNARDO DRIVE, SAN DIEGO CA 92127 |
Peter C Richardson | officer: See Remarks | 28903 NORTH AVENUE PAINE, VALENCIA CA 91355 |
Fred M Powell | officer: Executive Vice President & CFO | C/O BEJING MED-PHARM CORPORATION 600 W. GERMANTOWN PIKE, SUITE 400 PLYMOUTH MEETING PA 19462 |
Thomas J Garrity | director | |
Roche Robert P Jr | director | 41 MOORES ROAD FRAZER PA 19355 |
Leonard S Jacob | director | C/O INKINE PHARMACEUTICAL COMPANY INC 425 PARK AVENUE NEW YORK NY 10022 |
Peter J Graham | officer: See Remarks | 315 E. 72ND ST., APT 5E, NEW YORK NY 10021 |
Peter Greenleaf | director | ONE MEDIMMUNE WAY, GAITHERSBURG MD 20878 |
Anton Gueth | director | |
Robert F Apple | director, officer: President & CEO | C/O INKLINE PHARMACEUTICAL CO INC SENTRY PARK EAST 1720 WALTON ROAD BLUE BELL PA 19422 |
Marvin Samson | director | |
Jacques Gonella | director | C/O ANTARES PHARMA INC 707 EAGLEVIEW BLVD SUITE 414 EXTON PA 19341 |
James Patrick Tursi | officer: EVP, Chief Medical Officer | 106 ASHLEY COURT, MOORESTOWN NJ 08057 |
Keith E Muckenhirn | officer: VP/Controller & Interim CFO | C/O ANTARES PHARMA, INC. 3905 ANNAPOLIS LANE N, SUITE 105 PLYMOUTH MN 55447 |
From GuruFocus
By GuruFocus Research GuruFocus Editor • 05-18-2022
By GuruFocus Research GuruFocus Editor • 08-16-2022
By Business Wire Business Wire • 05-05-2022
By PRNewswire PRNewswire • 05-16-2022
By PRNewswire PRNewswire • 04-28-2022
By PRNewswire PRNewswire • 05-09-2022
By PRNewswire PRNewswire • 06-05-2022
By PRNewswire PRNewswire • 05-26-2022
By PRNewswire PRNewswire • 05-03-2022
By PRNewswire PRNewswire • 05-22-2022
Disclaimers: GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.