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Dec 1, 2024 9:00 PM - Andrew Wynn(Last modified: Dec 2, 2024 9:11 AM)
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Aquestive Therapeutics, Inc. (NASDAQ:AQST) is a pharmaceutical company that focuses on developing and commercializing innovative products to address unmet medical needs. The company specializes in oral film-based drug delivery systems, which offer an alternative to traditional pills and injections. In the competitive landscape, AQST stands out due to its unique technology and strong financial performance.
In evaluating AQST's financial efficiency, the Return on Invested Capital (ROIC) is a key metric. AQST boasts an impressive ROIC of 150.35%, which is significantly higher than its Weighted Average Cost of Capital (WACC) of 17.83%. This results in a ROIC to WACC ratio of 8.43, indicating that AQST is generating returns well above its cost of capital, showcasing its effective use of invested capital.
When compared to its peers, AQST's capital efficiency is evident. Eton Pharmaceuticals, Inc. (ETON) has a negative ROIC of -35.01% and a WACC of 9.89%, resulting in a ROIC to WACC ratio of -3.54. Similarly, Savara Inc. (SVRA) and Xeris Biopharma Holdings, Inc. (XERS) also show negative ROIC to WACC ratios of -4.53 and -2.02, respectively, highlighting their struggles in generating returns above their cost of capital.
Agile Therapeutics, Inc. (AGRX) presents a more positive picture with a ROIC of 63.39% and a WACC of 31.99%, leading to a ROIC to WACC ratio of 1.98. Although AGRX shows potential for growth, it still falls short of AQST's capital efficiency. Selecta Biosciences, Inc. (SELB) has a ROIC to WACC ratio of 0.92, indicating marginal returns above its cost of capital.
Overall, AQST's superior ROIC to WACC ratio of 8.43 sets it apart from its peers, demonstrating its ability to effectively utilize its capital to generate substantial returns. This financial strength, combined with its innovative product offerings, positions AQST as a potentially attractive investment in the pharmaceutical sector.
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