Where Pernix Therapeutics Holdings Inc (NASDAQ:PTX) Stands In Terms Of Earnings Growth Against Its Industry
Understanding how Pernix Therapeutics Holdings Inc (NASDAQ:PTX) is performing as a company requires looking at more than just a years’ earnings. Today I will run you through a basic sense check to gain perspective on how Pernix Therapeutics Holdings is doing by comparing its latest earnings with its long-term trend as well as the performance of its pharmaceuticals industry peers. Check out our latest analysis for Pernix Therapeutics Holdings
Could PTX beat the long-term trend and outperform its industry?
I look at data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This method enables me to assess different stocks on a similar basis, using the most relevant data points. For Pernix Therapeutics Holdings, its latest trailing-twelve-month earnings is -US$130.79M, which, against the prior year’s figure, has become less negative. Since these values may be fairly short-term, I have created an annualized five-year value for PTX’s net income, which stands at -US$59.39M. This shows that, Pernix Therapeutics Holdings has historically performed better than recently, despite the fact that it seems like earnings are now heading back towards a more favorable position once more.
We can further analyze Pernix Therapeutics Holdings’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Pernix Therapeutics Holdings’s top-line has risen by 19.64% on average, indicating that the company is in a high-growth phase with expenses shooting ahead of revenues, leading to annual losses. Inspecting growth from a sector-level, the US pharmaceuticals industry has been growing, albeit, at a muted single-digit rate of 7.65% over the prior year, and a substantial 10.40% over the past half a decade. This shows that, although Pernix Therapeutics Holdings is currently loss-making, it may have been aided by industry tailwinds, moving earnings into a more favorable position.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always hard to forecast what will happen in the future and when. The most useful step is to assess company-specific issues Pernix Therapeutics Holdings may be facing and whether management guidance has regularly been met in the past. I suggest you continue to research Pernix Therapeutics Holdings to get a more holistic view of the stock by looking at the areas below. Just a heads up – to access some parts of the Simply Wall St research tool you might be asked to create a free account, but it takes just one click and the information they provide is definitely worth it in my opinion.
1. Financial Health: Is PTX’s operations financially sustainable? Balance sheets can be hard to analyze, which is why Simply Wall St does it for you. Check out important financial health checks here.
2. Valuation: What is PTX worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in this free research report helps visualize whether PTX is currently mispriced by the market.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore a free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 September 2017. This may not be consistent with full year annual report figures.
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.