Fundamental Analysis for Acorda Therapeutics Inc. (ACOR:NSD) is Bearish

Target Advisor’s own stock analysis of Acorda Therapeutics is Bearish, which is based on 2 positive signals and 8 negative signals. At the last closing, Acorda Therapeutics stock price was USD 0.90Acorda Therapeutics stock price has changed by +0.52% over the past week, +0.56% over the past month and -80.71% over the last year.

 

About Acorda Therapeutics Inc. (ACOR:NSD):

Acorda Therapeutics, Inc., a biopharmaceutical company, develops and commercializes therapies for neurological disorders in the United States. The company markets Ampyra (dalfampridine), an oral drug to improve walking in patients with multiple sclerosis (MS); and Inbrija for the treatment of OFF periods in Parkinson’s disease in Europe. It also markets Ampyra as Fampyra in Europe, Asia, and the Americas. In addition, the company develops ARCUS product for the treatment of acute migrain; rHIgM22, which has completed Phase I clinical trial for the treatment of MS; and Cimaglermin alfa for heart failure patients. The company has collaboration and license agreement with Biogen Inc. for the development and commercialization of Ampyra. Acorda Therapeutics, Inc. was incorporated in 1995 and is headquartered in Ardsley, New York.

 

What we like:

Underpriced compared to earnings:

ACOR stock price is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value:

ACOR stock price is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

 

What we don’t like:

Low market capitalization:

Acorda Therapeutics is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns:

The average income yield for Acorda Therapeutics over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the market news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow:

Acorda Therapeutics had negative total cash flow in the most recent four quarters.

Negative free cash flow:

Acorda Therapeutics had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

ACOR stock has shown below median earnings growth in the previous 5 years compared to its sector.

Low Revenue Growth:

ACOR stock has shown below median revenue growth in the previous 5 years compared to its sector.