AMRN shares have a strong debt-to-equity ratio but their quick ratio which reads 1.00 is strong and might cause problems for them later in the future.
Even though there was a rise of +16.29% in revenue, the company failed to succeed in outperforming the industry average of 156.34%. For the most recent quarter, the net income has dropped by -125.04%. This weakness in their income has affected them and thus decreased their earnings to -$22.12 M. The 16.81% yoy growth of AMRN’s revenue has gone up that of the industry average by -7.19%. For the past 12 months, Amarin Corporation plc revenue has gone up by 24.00%. The sustained growth in their revenue has helped boost their earnings per share.
They have recorded a 27.94% growing earnings per share earnings. They have recorded a 27.94% growing earnings per share earnings. Analysts expect decrease in earnings is also on the cards next quarter with an average estimate at -$0.10.
Comparing them to other companies in the industry and the overall Healthcare sector, the industry average is -2.18 while 15.29 is of the sector.
In addition to their unfavorable P/E ratio, Amarin Corporation plc has maintained a gross margin of 75.47. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is -51.92 when compared to 0.35 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, Amarin Corporation plc ROE is above 15.29 that of both the sector average.
The operating profit margin for Amarin Corporation plc (AMRN) is -40.63%, a figure which is considered to be weak. It has gone -1,638.83 from the -94.64 over the past 5 years. In addition to this, their operating margin is -39.63 lower than the industry average.
The net profit margin which stood at -102.35 on average in the past 5 years has jumped to -47.55 in the last 12 months. Added to that, this ratio has surpassed the industry net margin that stands at -1,572.92.
Analysts meanwhile rate Amarin Corporation plc (NASDAQ:AMRN) as a strong buy. Still some above discussed indicators of the $5.84B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the AMRN shares to either perform positively or negatively when compared to other stocks. The primary strengths of Amarin Corporation plc can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.