Aspen Pharmacare (APNHY) AI Stock Analysis

• Market Cap: $2.40B
• Dividend Yield: 2.25%
• Average Volume (3M): 710.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.44
• Revenue Growth: -0.03%
• EPS Growth: -123.67%
• Country: US
• Employees: 8,867
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.42
• Shares Outstanding: 446,252,320
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 710
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.94
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 0.23
• Enterprise Value/Ebitda: 0.43
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $6.00 ▲(10.50% Upside)

Aspen Pharmacare's overall stock score is primarily impacted by its financial challenges, including declining revenue and profitability, and poor cash flow metrics. The earnings call provided some positive insights, particularly in the Commercial Pharma segment, but was offset by significant challenges such as contract losses and adverse currency impacts. Technical analysis and valuation also reflect a cautious outlook, with a neutral trend and negative earnings affecting the stock's attractiveness.

Aspen Pharmacare Business Overview & Revenue Model

Company Description

Aspen Pharmacare Holdings Limited, together with its subsidiaries, manufactures and supplies specialty and branded pharmaceutical products worldwide. It operates in Commercial Pharmaceuticals and Manufacturing segments. The company provides general anesthetics, muscle relaxants, and topical agents under the Anaesthetics brand; and a range of injectable anticoagulants with a focus on low molecular weight heparins, Xa inhibitors, and heparin derivatives under the Thrombosis brand. It also offers branded consumer, prescription, and over-the-counter products under the regional brands, such as Circadin, Foxair, Maltofer, Mybulen, and Zyloric for various types of anesthetic comprises sleeping aid, respiratory, iron supplement, analgesic, and uric acid production inhibitor. In addition, the company manufactures and sells active pharmaceutical ingredients and finished dose form products to third-party customers. The company was founded in 1850 and is headquartered in Durban, South Africa.

How the Company Makes Money

Aspen Pharmacare generates revenue primarily through the sale of pharmaceutical products across various therapeutic categories. Its revenue model is built on three main streams: prescription medicines, consumer healthcare products, and active pharmaceutical ingredients. The company benefits from a robust distribution network that allows it to reach markets across Africa, Europe, and Asia-Pacific. Strategic partnerships and collaborations with other pharmaceutical companies enhance its product offerings and market presence. Additionally, Aspen's focus on generic pharmaceuticals allows it to compete effectively in price-sensitive markets, further contributing to its earnings. Factors such as regulatory approvals, successful product launches, and the expansion of its manufacturing capabilities also play significant roles in driving revenue growth.

Aspen Pharmacare Financial Statement Overview

Summary

Aspen Pharmacare exhibits strong revenue growth and operational efficiency, with a solid gross profit margin. However, declining net profit margins and ROE, along with a significant drop in free cash flow, raise concerns. The company maintains a moderate leverage and strong equity position, providing financial stability, but needs to address profitability and cash flow issues.

Income Statement

Aspen Pharmacare has shown a consistent increase in revenue over the years, with a revenue growth rate of 9.82% from 2023 to 2024. The gross profit margin stands at 43.44%, indicating strong profitability. However, the net profit margin has decreased to 9.85% in 2024, reflecting a decline in net income. The EBIT margin is 15.65%, and the EBITDA margin is 22.16%, both of which suggest healthy operational efficiency despite some decline in EBIT.

Balance Sheet

The company's debt-to-equity ratio is 0.43, indicating a moderate level of leverage. The return on equity (ROE) has decreased to 5.19%, which is a concern for investor returns. The equity ratio is 60.98%, showing a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Aspen Pharmacare's free cash flow has decreased significantly, with a negative growth rate of -70.50% from 2023 to 2024. The operating cash flow to net income ratio is 1.41, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has dropped to 0.16, highlighting challenges in maintaining free cash flow levels.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	45.52B	43.36B	44.71B	40.71B	38.61B	37.77B
Gross Profit	20.56B	19.13B	19.42B	18.41B	18.31B	17.79B
EBITDA	10.79B	2.16B	9.90B	10.19B	9.93B	8.67B
Net Income	4.48B	-1.08B	4.40B	5.23B	6.49B	4.81B
Balance Sheet
Total Assets	136.60B	135.89B	139.16B	134.28B	111.38B	109.68B
Cash, Cash Equivalents and Short-Term Investments	6.80B	6.41B	12.34B	10.91B	6.18B	8.55B
Total Debt	35.47B	36.12B	36.46B	29.28B	22.25B	24.87B
Total Liabilities	51.51B	51.00B	54.29B	48.05B	40.43B	44.06B
Stockholders Equity	85.09B	84.89B	84.86B	86.24B	70.94B	65.63B
Cash Flow
Free Cash Flow	2.75B	104.00M	690.00M	2.34B	2.68B	3.39B
Operating Cash Flow	5.57B	5.16B	6.22B	5.52B	5.37B	6.83B
Investing Cash Flow	-6.09B	-5.22B	-9.47B	-3.42B	-2.16B	9.76B
Financing Cash Flow	676.00M	-162.00M	3.62B	-420.00M	-4.68B	-15.65B

Aspen Pharmacare Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APNHY, the sentiment is Negative. The current price of 5.43 is below the 20-day moving average (MA) of 5.77, below the 50-day MA of 5.74, and below the 200-day MA of 7.12, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 38.30 is Neutral, neither overbought nor oversold. The STOCH value of 21.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APNHY.

Aspen Pharmacare Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUPN	74 Outperform	$3.20B	49.82	6.38%	―	5.55%	1145.24%
AMRX	63 Neutral	$3.56B	788.19	―	―	9.50%	―
HCM	52 Neutral	$2.73B	5.76	47.54%	―	-1.35%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
APNHY	50 Neutral	$2.40B	-43.32	-1.18%	2.25%	-0.03%	-123.67%
PRGO	50 Neutral	$2.78B	―	-1.32%	5.55%	-2.32%	35.46%
ALVO	48 Neutral	$1.46B	23.01	―	―	98.37%	―

Aspen Pharmacare Corporate Events

Aspen Pharmacare’s Earnings Call: Growth Amid Challenges

Aspen Pharmacare’s recent earnings call painted a mixed picture of the company’s financial health. While there was notable growth in the Commercial Pharma segment and successful product launches, the overall sentiment was tempered by challenges such as the loss of a key contract, adverse currency impacts, and increased tax burdens. These factors significantly affected the company’s financial performance, highlighting a complex landscape for Aspen moving forward.

Aspen Pharmacare Faces Challenges Amid Strategic Growth

Aspen Pharmacare Holdings Limited, a South African pharmaceutical company, specializes in manufacturing and distributing a wide range of pharmaceutical products, including injectables, over-the-counter (OTC) medications, and prescription drugs. The company operates primarily in the commercial pharmaceuticals sector and has a significant presence in multiple international markets.