F-4-26-19

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EGRX - got stuck in a giant triangle structure

Eagle Pharmaceuticals, Inc. is a small cap specialty pharmaceutical company. The Company focuses on developing and commercializing injectable products in the critical care and oncology areas.

EGRX rallied in impulsive fashion off the $9.16 lows in May 2014 to the top at 140.17 in August 2015. Since then the stock got stuck in a flat consolidation called a triangle. Here you can read and learn features of the triangle pattern.

It looks like it completed wave C down and has started a rally in wave D up targeting $74-83.

 

EGRX - Weekly chart updated on 4/10/2019

Financial Strength

The company has great profitability ratios and has a reasonably low debt load. The main risk factor is the company is a small cap of $0.7 bln. Thought it is not “cheap” but rather inexpensive traded at attractive 13.4 x Price-to-Free-Cash-Flow.From the current price of $46.95 it can climb over several months to $74 – $83 ( nice upside of 57% – 77% ).

Operating Margin

22.0%

Net
Margin

15%

Return on Capital

63%

Price-to-Free-Cash-Flow

13.4

Debt-to-EBITDA

x1.10

Dividend
Yield

0%

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