Last Updated: 17 Sep 2024
Executive Summary
Indivior PLC (INDV) is a pharmaceutical company specializing in the development and marketing of opioid dependence treatments. Despite facing challenges in recent years, the company's financial performance has shown signs of improvement in 2023, with revenue growth and a reduction in losses. However, the stock price remains below its 52-week high, offering potential for value investors.
Company Overview
Indivior PLC is headquartered in Virginia, USA, and focuses on developing and manufacturing buprenorphine-based medications for treating opioid use disorder. The company's primary products include Suboxone and Subutex, which are used in medication-assisted treatment programs.
Fundamental Analysis
Revenue: INDV reported revenue of $1.15 billion in the trailing twelve months (TTM), representing an 8.3% year-over-year growth.
Earnings: The company incurred a net loss of $1.04 per share in the TTM, an improvement from the previous year's loss.
Profitability: INDV's profit margins remain negative, with a gross profit margin of -12.3% and an operating margin of -42.1%.
Balance Sheet: The company has a negative book value of -$0.903 per share and a debt-to-equity ratio of 1.3.
Valuation: INDV trades at a forward price-to-sales ratio of 1.13 and a price-to-book ratio of 145.25.
Technical Analysis
Trend: The stock price has been trending down since its 52-week high of $23.22, currently trading at $9.54.
Moving Averages: The 50-day moving average is $11.95, while the 200-day moving average is $16.43, indicating a downward trend.
Support and Resistance: Key support levels include $9.00 and $8.00, while resistance levels are at $10.00 and $11.00.
Short Term Outlook
In the short term, INDV's stock price is expected to remain volatile. The company's financial performance is improving, but challenges remain, including competition and regulatory issues. The stock price may test the $9.00 support level before rebounding.
Long Term Outlook
The long-term outlook for INDV is uncertain. The company's focus on opioid dependence treatment is a growing market, but it faces competition and regulatory scrutiny. If INDV can successfully navigate these challenges and improve its profitability, the stock price has potential for growth.
Analyst Recommendations
Analysts have a mixed view on INDV. Three analysts rate the stock as a "Buy," while none recommend it as a "Strong Buy," "Hold," "Sell," or "Strong Sell." The average analyst target price is $23.67, implying a significant upside potential.
