Spectrum Pharma Stock Analysis, Valuation (NASDAQ:SPPI)

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$21.52 $0.87 (4.21%) SPPI stock closing price Sep 20, 2018 (Closing)

View the Spectrum Pharma stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for SPPI 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.

Spectrum Pharmaceuticals, Inc. Stock Rating 1.9/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for SPPI stock analysis. Spectrum Pharma valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at Spectrum Pharma stock rating which is indicative of the company's financial performance.

Should you buy SPPI stock?

  • Spectrum Pharma has a lower debt burden than its peers in the Medical sector, with a debt/equity ratio of 0.12.

Should you sell SPPI stock?

  • Spectrum Pharma had a low YoY revenue growth of 4.8% in the 2018-03.
  • Sales declined by -12 annually over the last 5 years.
  • Spectrum Pharma reported an average operating margin of -77.51 over the Last Twelve Months (LTM).
  • Spectrum Pharma posted an average Net loss of -64.4% in the last twelve months.
  • The company does not have profits. Hence the PE ratio is meaningless for SPPI stock.
  • SPPI stock is trading at a PS multiple of 19.6, which is a negative when compared to the Medical sector average multiple of 6.2.
  • Spectrum Pharma has a negative ROIC (Return on Invested Capital) of -45.8.
  • Spectrum Pharma has a negative ROE (Return On Equity) of -29.9, indicating the company is not profitable.
  • Spectrum Pharma has a negative FCF (Free Cash Flow) margin of -87.8.

Comments on this video and Spectrum Pharma stock

Amigobulls Spectrum Pharma stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of SPPI stock. Company's fundamentals remain one of the key driver of SPPI stock and helps investors in making good buy and sell decision.

Spectrum Pharma revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Investors could make use of SPPI technical analysis to check whether the fundamental story is reflected in the market sentiment.