Apricus Biosciences Inc (NASDAQ:APRI), a pharmaceuticals company based in United States, received a lot of attention from a substantial price movement on the NasdaqCM over the last few months, increasing to $0.97 at one point, and dropping to the lows of $0.26. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether Apricus Biosciences’s current trading price of $0.27 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Apricus Biosciences’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for Apricus Biosciences
What is Apricus Biosciences worth?
Good news, investors! Apricus Biosciences is still a bargain right now. I’ve used the price-to-book ratio in this instance because there’s not enough visibility to forecast its cash flows, and its earnings doesn’t seem to reflect its true value. The stock’s ratio of 1.03x is currently well-below the industry average of 3.43x, meaning that it is trading at a cheaper price relative to its peers. What’s more interesting is that, Apricus Biosciences’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.
What does the future of Apricus Biosciences look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. With profit expected to grow by 21.89% over the next year, the near-term future seems bright for Apricus Biosciences. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? Since APRI is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on APRI for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy APRI. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Apricus Biosciences. You can find everything you need to know about Apricus Biosciences in the latest infographic research report. If you are no longer interested in Apricus Biosciences, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.