Avadel Pharmaceuticals plc (AVDL)
Valuation Overview•Is Avadel Pharmaceuticals plc Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Moderate quality score of 60/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street sentiment is generally neutral. The company currently dilutes shareholders to fund operations and growth rather than returning capital.
AVDL struggles with subpar profitability and pressured margins. This is backed by a fortress balance sheet, holding significant net cash ($50M) and minimal debt risk.
The company maintains stable top-line performance paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (1.8%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $77.5M | +504.8% | — | +23.4% | +27.6% | |
| EBITDA | $3.1M | — | +22.3% | — | — | |
| Net Income | $20K | +69.5% | +14.2% | — | +5.4% | |
| EPS (Diluted) | $0.00 | +74.5% | — | — | +14.1% | |
| Free Cash Flow | $23.2M | +63.5% | +15.4% | -4.1% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 94.5% | 94.0% | 87.4% | 87.5% |
| Operating Margin | 1.8% | -259.0% | -164.0% | -68.2% |
| Net Margin | -0.1% | -301.0% | -190.2% | -85.5% |
| FCF Margin | 14.2% | -243.7% | -235.3% | -104.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q1'26Latest | $0.08 | $-0.05 | -162.5% | ||
| Q4'25 | $0.04 | — | — | ||
| Q3'25 | $0.02 | $0.10 | +400.0% | ||
| Q2'25 | $-0.07 | $-0.05 | +28.6% | ||
| Q1'25 | $-0.05 | $-0.05 | +0.0% | ||
| Q4'24 | $-0.06 | $-0.03 | +50.0% | ||
| Q3'24 | $-0.17 | $-0.14 | +17.6% | ||
| Q2'24 | $-0.25 | $-0.30 | -20.0% |
Total return is +132.2% (1Y), outperforming the benchmark by +107.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +0.6% | -8.7% | — |
| 1Y | +132.2% | +107.2% | — |
| 3YCAGR | +14.3% | -5.2% | — |
| 5YCAGR | +22.5% | +10.0% | — |
| 10YCAGR | +8.6% | -5.0% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Avadel Pharmaceuticals plc (AVDL) valuation, health, and returns.
Avadel Pharmaceuticals plc is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -31.6% downside from DCF intrinsic value of $14.81)
Avadel Pharmaceuticals plc has multiple valuation anchors: DCF Intrinsic Value: $14.81 | Peer Relative Fair Value: $5.23 | Wall Street Analyst Target: $21.43 (implying -1.0% upside). A convergence of these signals offers higher conviction.
Avadel Pharmaceuticals plc displays good financial health with a composite quality score of 60/100, supported by a Altman Z-Score of 8.2 (safe zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of -76.3%.
Avadel Pharmaceuticals plc does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Avadel Pharmaceuticals plc's current growth trajectory is Stable. The company achieved +504.8% 1Y revenue growth and +74.5% 1Y EPS growth, compared to its 3Y revenue CAGR of N/A.
Wall Street consensus is Buy based on 14 analysts, beating EPS expectations in 33% of recent quarters with a -1-quarter streak. The consensus price target represents a -1.0% change from current levels.
Investment risks for Avadel Pharmaceuticals plc include: -13.7% 1-year max drawdown. Volatility risk is characterized by a beta of 0.14x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.