AVADEL PHARMA Stock Analysis, Valuation (NASDAQ:AVDL)

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$4.5 $0.1 (2.27%) AVDL stock closing price Sep 20, 2018 (Closing)

Watch the robo advisor video of AVADEL PHARMA stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for AVDL stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

AVADEL PHARMA Stock Rating 2.5/5

Amigobulls AVDL stock analysis uses latest quarter 2018 Q2 financial data like AVADEL PHARMA revenue growth, profit margins and cash flows. AVADEL PHARMA valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. AVADEL PHARMA stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy AVDL stock?

  • The TTM operating margin was good at 4.87 for AVADEL PHARMA.
  • When compared with the Medical sector average PS ratio of 6.9, the price-to-sales ratio of 1.3 for AVDL stock is attractive.

Should you sell AVDL stock?

  • AVADEL PHARMA sales declined by -36.9% year on year in 2018-06.
  • Revenue growth of 42.3 has been weak over the last 5 years.
  • Over the last 12 months, AVADEL PHARMA had an average Net loss of -2.4%.
  • With a debt/equity ratio of 1.44, AVADEL PHARMA is highly leveraged in comparison to Medical peers.
  • PE ratio is meaningless for AVDL stock as the company has losses.
  • The company has a negative Return on Invested Capital of -6.9, which is a red flag.
  • A negative ROE of -3.8 indicates that the company is not able to generate profits with the money shareholders have invested.
  • The company has a negative free cash flow margin of -68.4.

Comments on this video and AVADEL PHARMA stock

Amigobulls AVADEL PHARMA stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, AVADEL PHARMA revenue growth along with the profit or net income give a clear picture of the financial health. One can also combine technical analysis and fundamental analysis to get a holistic picture about AVDL stock.