Company Overview
Amarin Corporation plc is a pharmaceutical entity dedicated to the commercialization and development of therapeutics designed to treat cardiovascular diseases across the United States, Europe, and international markets. The company operates within the Healthcare sector, specifically classified under the Drug Manufacturers - General industry, which implies a focus on research, development, and the manufacturing of specific medical interventions rather than broad consumer goods. As a specialized player in this field, the company maintains a workforce of 80 employees and holds a market capitalization of $305.40M with an annual revenue of $213.65M. These financial figures indicate that Amarin functions as a mid-sized entity within the pharmaceutical landscape, where a market cap of roughly $305 million suggests a company that has established a commercial footprint but remains sensitive to the specific performance of its core product portfolio rather than the diversified scale of large-cap peers.
Financial Health
The company reported revenue of $213.65M over the trailing twelve months, yet this revenue generated a net income of $-38,798,000 and an EBITDA of $-10,913,000, revealing a cost structure where expenses significantly outpace top-line generation. The free cash flow stands at $-25,504,500, indicating that the company is currently burning cash to fund operations, research, or commercial expansion rather than generating surplus liquidity for immediate distribution to shareholders. Margin analysis shows a gross margin of 56.6%, which suggests efficient production or sourcing of its primary products, while the operating margin sits at -4.6% and the profit margin at -18.2%, highlighting that high fixed costs or commercialization expenses are eroding profitability despite healthy gross efficiency. On the balance sheet, the company holds $302.59M in cash against $8.23M in debt, creating a stark contrast that is further quantified by a debt-to-equity ratio of 1.79, suggesting a leveraged capital structure where equity is the primary funding source despite the low absolute debt load. The current ratio of 3.34 indicates robust short-term liquidity, meaning the company possesses more than three times the current assets necessary to cover its short-term liabilities without immediate distress. Return on equity is recorded at -8.2% and return on assets at -1.3%, metrics that reveal management is currently utilizing shareholder capital and assets to generate losses rather than positive returns, a common characteristic during the commercialization phase of biopharmaceutical assets.
Valuation Assessment
Valuation metrics for the company include a trailing P/E ratio of N/A and a forward P/E of 12.55, implying that while historical earnings do not support a traditional multiple due to losses, the market is pricing in a future trajectory where earnings are expected to turn positive to justify the forward multiple. The price-to-book ratio is 0.67, indicating that the market values the company at roughly two-thirds of its book value, which often suggests that the market perceives intangible assets or future growth potential as undervalued relative to the net asset base. Alternative valuation measures such as the price-to-sales ratio of 1.43 and an EV/EBITDA of -532.73 suggest that investors are focusing on revenue generation and sales multiples rather than current earnings power or cash flow profitability. The stock has traded between a 52-week high of $20.90 and a 52-week low of $7.60; without the specific current share price provided in the source facts, the precise percentage deviation from the high cannot be calculated, but the range demonstrates significant volatility and potential for capital appreciation if the company achieves profitability. The beta value of 0.89 indicates that the stock's price volatility is slightly lower than the broader market, suggesting it may be less sensitive to general market swings compared to a beta of 1.0.
Growth & Income
Revenue growth year-over-year is -21.0%, while earnings growth is N/A due to the lack of positive net income, meaning the company is currently in a contraction phase regarding top-line sales rather than expanding its market share. Since earnings growth is N/A, there is no comparison between earnings and revenue growth rates, but the decline in revenue implies a challenge in maintaining commercial momentum or facing market headwinds for its primary therapeutics. The company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which means the company reinvests all available cash flow back into its operations, R&D, or debt reduction rather than distributing income to shareholders. This non-dividend profile aligns with the financial health section showing negative free cash flow, confirming that the company prioritizes operational survival and future growth over current income distribution. The overall growth and income profile is characterized by revenue contraction and a lack of dividend income, positioning the company as a pure growth play that relies entirely on future profitability to attract capital.