Travere Therapeutics, Inc. Fundamental Analysis (NASDAQ: TVTX)
Travere Therapeutics, Inc. (NASDAQ: TVTX) shows weak financial fundamentals with a PE ratio of -145.87, profit margin of -7.35%, and ROE of -55.79%. The company generates $0.6B in annual revenue with weak year-over-year growth of 1.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -30.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TVTX's fundamental strength across five key dimensions:
Efficiency Score
WeakTVTX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTVTX trades at attractive valuation levels.
Growth Score
ModerateTVTX shows steady but slowing expansion.
Financial Health Score
ModerateTVTX shows balanced financial health with some risks.
Profitability Score
WeakTVTX struggles to sustain strong margins.
Key Financial Metrics
Is TVTX Expensive or Cheap?
P/E Ratio
TVTX trades at -145.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TVTX's PEG of 1.27 indicates fair valuation.
Price to Book
The market values Travere Therapeutics, Inc. at 250.22 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 3630.11 times EBITDA. This signals the market has high growth expectations.
How Well Does TVTX Make Money?
Net Profit Margin
For every $100 in sales, Travere Therapeutics, Inc. keeps $-7.35 as profit after all expenses.
Operating Margin
Core operations generate -6.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-55.79 in profit for every $100 of shareholder equity.
ROA
Travere Therapeutics, Inc. generates $-5.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Travere Therapeutics, Inc. produces operating cash flow of $92.22M, showing steady but balanced cash generation.
Free Cash Flow
Travere Therapeutics, Inc. produces free cash flow of $51.25M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.55 in free cash annually.
FCF Yield
TVTX converts 0.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-145.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
250.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
10.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
25.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.56
vs 25 benchmark
ROA
Return on assets percentage
-0.05
vs 25 benchmark
ROCE
Return on capital employed
-0.06
vs 25 benchmark
How TVTX Stacks Against Its Sector Peers
| Metric | TVTX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -145.87 | 30.97 | Better (Cheaper) |
| ROE | -55.79% | 515.00% | Weak |
| Net Margin | -7.35% | 30203.00% | Weak |
| Debt/Equity | 25.16 | 0.53 | Weak (High Leverage) |
| Current Ratio | 4.05 | 5.71 | Strong Liquidity |
| ROA | -5.44% | -15.00% (disorted) | Weak |
TVTX outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Travere Therapeutics, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
31.86%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
91.97%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
147.11%
Industry Style: Defensive, Growth, Innovation
High Growth