Aquestive Therapeutics, Inc. (NASDAQ:AQST) is a pharmaceutical company that focuses on developing and commercializing innovative products to address unmet medical needs. The company specializes in oral film-based drug delivery systems, which offer an alternative to traditional pills and injections. In the competitive landscape, AQST stands out due to its unique technology and strong financial metrics.
In evaluating AQST's financial performance, the Return on Invested Capital (ROIC) is a key indicator. AQST boasts an impressive ROIC of 150.35%, which is significantly higher than its Weighted Average Cost of Capital (WACC) of 18.12%. This results in a ROIC to WACC ratio of 8.30, suggesting that AQST is highly efficient in generating returns on its investments compared to its cost of capital.
When comparing AQST to its peers, the contrast is stark. Eton Pharmaceuticals, Inc. (ETON) has a negative ROIC of -34.74% and a WACC of 10.13%, leading to a ROIC to WACC ratio of -3.43. This indicates that ETON is not generating sufficient returns to cover its cost of capital, highlighting AQST's superior performance.
Agile Therapeutics, Inc. (AGRX) presents a more positive picture with a ROIC of 63.39% and a WACC of 31.99%, resulting in a ROIC to WACC ratio of 1.98. While AGRX shows potential for growth, its efficiency in generating returns is still significantly lower than AQST's, reinforcing AQST's position as a more attractive investment.
Other peers like Savara Inc. (SVRA) and Xeris Biopharma Holdings, Inc. (XERS) also struggle with negative ROIC to WACC ratios of -4.39 and -1.66, respectively. Selecta Biosciences, Inc. (SELB) has a slightly positive ratio of 0.92, but it pales in comparison to AQST's robust performance. This analysis underscores AQST's strong potential for value creation relative to its peers.
Symbol | Price | %chg |
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SIDO.JK | 580 | 0 |
TSPC.JK | 2510 | 0.4 |
000105.KS | 105700 | -2.46 |
000100.KS | 117900 | -1.95 |
Aquestive Therapeutics, Inc. (NASDAQ:AQST) is a pharmaceutical company that focuses on developing and commercializing innovative products to address unmet medical needs. The company specializes in oral film-based drug delivery systems, which offer an alternative to traditional pills and injections. In the competitive landscape, AQST stands out due to its unique technology and strong financial performance.
In evaluating AQST's financial efficiency, the Return on Invested Capital (ROIC) is a key metric. AQST boasts an impressive ROIC of 150.35%, which is significantly higher than its Weighted Average Cost of Capital (WACC) of 17.83%. This results in a ROIC to WACC ratio of 8.43, indicating that AQST is generating returns well above its cost of capital, showcasing its effective use of invested capital.
When compared to its peers, AQST's capital efficiency is evident. Eton Pharmaceuticals, Inc. (ETON) has a negative ROIC of -35.01% and a WACC of 9.89%, resulting in a ROIC to WACC ratio of -3.54. Similarly, Savara Inc. (SVRA) and Xeris Biopharma Holdings, Inc. (XERS) also show negative ROIC to WACC ratios of -4.53 and -2.02, respectively, highlighting their struggles in generating returns above their cost of capital.
Agile Therapeutics, Inc. (AGRX) presents a more positive picture with a ROIC of 63.39% and a WACC of 31.99%, leading to a ROIC to WACC ratio of 1.98. Although AGRX shows potential for growth, it still falls short of AQST's capital efficiency. Selecta Biosciences, Inc. (SELB) has a ROIC to WACC ratio of 0.92, indicating marginal returns above its cost of capital.
Overall, AQST's superior ROIC to WACC ratio of 8.43 sets it apart from its peers, demonstrating its ability to effectively utilize its capital to generate substantial returns. This financial strength, combined with its innovative product offerings, positions AQST as a potentially attractive investment in the pharmaceutical sector.