Esperion Therapeutics, Inc.
Esperion Therapeutics, Inc. Fundamental Analysis
Esperion Therapeutics, Inc. (ESPR) shows moderate financial fundamentals with a PE ratio of -6.50, profit margin of -34.84%, and ROE of 24.90%. The company generates $0.3B in annual revenue with weak year-over-year growth of 1.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ESPR's fundamental strength across five key dimensions:
Efficiency Score
WeakESPR struggles to generate sufficient returns from assets.
Valuation Score
ModerateESPR shows balanced valuation metrics.
Growth Score
ModerateESPR shows steady but slowing expansion.
Financial Health Score
ExcellentESPR maintains a strong and stable balance sheet.
Profitability Score
WeakESPR struggles to sustain strong margins.
Key Financial Metrics
Is ESPR Expensive or Cheap?
P/E Ratio
ESPR trades at -6.50 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ESPR's PEG of 3.18 indicates potential overvaluation.
Price to Book
The market values Esperion Therapeutics, Inc. at -1.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -6.47 times EBITDA. This is generally considered low.
How Well Does ESPR Make Money?
Net Profit Margin
For every $100 in sales, Esperion Therapeutics, Inc. keeps $-34.84 as profit after all expenses.
Operating Margin
Core operations generate -9.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.90 in profit for every $100 of shareholder equity.
ROA
Esperion Therapeutics, Inc. generates $-29.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Esperion Therapeutics, Inc. generates limited operating cash flow of $-92.99M, signaling weaker underlying cash strength.
Free Cash Flow
Esperion Therapeutics, Inc. generates weak or negative free cash flow of $-92.99M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.47 in free cash annually.
FCF Yield
ESPR converts -13.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-6.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
-1.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.004
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.25
vs 25 benchmark
ROA
Return on assets percentage
-0.29
vs 25 benchmark
ROCE
Return on capital employed
-5.89
vs 25 benchmark
How ESPR Stacks Against Its Sector Peers
| Metric | ESPR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -6.50 | 29.43 | Better (Cheaper) |
| ROE | 24.90% | 800.00% | Weak |
| Net Margin | -34.84% | -20145.00% (disorted) | Weak |
| Debt/Equity | -1.33 | 0.30 | Strong (Low Leverage) |
| Current Ratio | 1.00 | 4.64 | Neutral |
| ROA | -29.07% | -17936.00% (disorted) | Weak |
ESPR outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Esperion Therapeutics, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-67.58%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
93.13%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
95.13%
Industry Style: Defensive, Growth, Innovation
High Growth