Corporate Webpages Depomed, Inc.
Depotmed (DEPO) is one of the smaller pharmaceutical
manufacturers with three main products (sources of revenue). It
also licenses technology to other drug companies and receives
royalties. With its rather limited pipeline, prospects for this
company look steady but not ready to take off for the moon.
Shares have been beaten down recently by a rather erratic
earnings pattern and guidance for lower earnings. Significant
earnings have come from grants from the Government for research
on various medications including some to treat nerve pain.
One of our traders has found Furosemide helpful, a drug to
relieve excess water retention, and Depotmed holds the rights to
that.
Lower projected earnings should not be too worrisome as the
stock has a current P/E of below 6 and no debt. Projected
earnings for 2012 however, include a windfall. This gives
analysts confidence to highly rate the stock. There is a real
split between researchers who hate this stock and analysts.
Researchers are often late to the party. Executive compensation
is certainly not a problem with this company.
The presence of Dimensional Fund Advisors among the major
institutional holders we regard as a big plus for this company.
Nonetheless institutions (including DFA) are selling.
Placing all the elements of our Decision Matrix together, this
didn't exactly turn out to be a strong buy situation, but if one
is willing to assume some risk, the company has a strong
research program going and ability to turnaround quickly. The
difficult economic environment punishing all stocks and grant
hopefuls might be offset by America's aging population and the
need for medications for which this company has worked out tough
deal partnerships with larger drug companies.
To get started, a smaller company seeks partnerships with larger ones
to achieve marketing results for its products. This company seems poised to
dictate a larger share of unencumbered rewards for its latest products.
08-13-2011: Depomed, Inc. (DEPO): Seeks Unencumbered Ownership of Products
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Financial Ratios
Market Grader
Intrinsic Value (Disc. CashFlow)
Intrinsic Value (Proj. Earnings)
Scout Stock Rating
Projected Earnings
Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
Stock Report
Management's Discussion
Moving Average Chart
Right Time Study
Channel Potential
Intraday Chart
Stock Fetcher
Point & Figure Chart
Wall Street Analyzer
Marketspace Chart
Time Series Forecast
Neural Network Prediction
Stock Options
Ultimate Trading Systems
Recommendation
Corporate Wepages
Company Profile |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is consider strong and > 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
DepoMed Inc. (DEPO ) Sector: Healthcare
1360 O'Brien Drive Industry: Drug Manufacturers - Other
Menlo Park, CA 94025 Exchange: Nasdaq
Depomed, Inc., a specialty pharmaceutical company, develops and
commercializes pharmaceutical products based on its proprietary oral drug
delivery technologies in the United States. It markets GLUMETZA for the
treatment of type 2 diabetes in the United States and Canada; and Proquin
XR for the treatment of uncomplicated urinary tract infection in the
United States. The company-Ęs product candidates include DM-1796 for the
treatment of postherpetic neuralgia, which has completed a Phase III
clinical trial; Serada for the treatment of menopausal hot flashes, which
has completed a Phase III clinical trial; DM-3458 for gastroesophageal
reflux disease; and DM-1992 to treat Parkinson's disease, which has
completed a Phase I clinical trial. It sells its products to wholesalers
and retail pharmacies. The company has collaboration and license
agreements with Solvay Pharmaceuticals, Inc.; PharmaNova, Inc.; Santarus,
Inc.; Merck & Co., Inc.; Covidien, Ltd.; TEVA Pharmaceuticals USA, Inc.;
King Pharmaceuticals, Inc.; Esprit Pharma, Inc.; LG Life Sciences, Ltd.;
Rottapharm/Madaus S.r.l.; PharmaNova, Inc.; and Supernus Pharmaceuticals,
Inc. Depomed, Inc. was founded in 1995 and is based in Menlo Park,
California.
Last Trade: 5.14 52-Week Range: 10.40 - 3.42
Trade Date: 08-11 Avg. Volume: 964,366 Shares
Index Membership: Employees: 70
Corporate Governance:
Board (Medium Risk), Audit (Low Risk), Compensation (Medium
Risk), Shareholder Rights (Low Risk).
EPS: 1.76 Dividend Amount: $ 0.00 Yield: 0.00%
Ex-Dividend Date: N/A Mkt Cap: $ 284,560K
Payout Ratio: 0.00%
Last Split Factor (new for old): N/A Split Date: N/A
Key Statistics:
Enterprise Value: $ 182,870K Revenue (ttm) : $ 145,300K
Gross Profit: $ 72,670K
Earnings before Income Tax, Depreciation and Amortization: $ 56,300K
Enterprise Value/Revenue (ttm): 1.26 Revenue per Share: $ 2.73
Enterprise Value/EBITDA (ttm): 3.25 Qtrly Rev Growth (y to y):-13.10%
P/E Ratio (fwd projected):171.33 P/E Ratio (current): 2.93
P/E Growth Ratio (5 yr expected): 0.12 Operating Margin: 38.51%
Price/Sales Ratio: 1.96 Profit Margin: 66.58%
Price/Book Value: 2.26 Book Value: $ 2.27/sh.
Return on Assets: 26.23% Net Income Avl to Common: $ 96,740K
Return on Equity: 134.78% Diluted Earnings/Share: $ 1.76
Qrtly Earnings Growth (yoy): 0.00%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 113,830K Operating Cash Flow:$ 83,350K
Total Debt: $ 121K Lvgd Free Cash Flow:$ 30,780K
Total Debt/Equity: 0.10
Total Cash/Share: $ 2.06
Current Ratio: 4.04
Share Statistics: Stock Price History:
Shares Outstanding: 55,360K Stk 52-Week Change: 182.22%
Float: 41,150K S&P 500 52-Wk Chng: 18.08%
Sh. Short % of Float: 12.60% 50-Day Moving Avg: 8.49
Short Ratio: 6.40 200-Day Moving Avg: 7.83
% Held by Institutions: 53.30% Beta: 1.72
% Held by Insiders: 10.49%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Sep 11 Dec 11 Dec 11 Dec 12
Average Earnings Estimate -0.03 0.01 1.68 0.03
Average Revenue Estimate 3M 29M 155M 128M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 5.833 EPS Growth (Qrtly YoY): 0.000
PEG Ratio (ttm, 5 yr expected): 3.684 P/E Ratio (ttm): 3.182
Revenue Growth (Qrtly YoY): 2.000
Annual Income Statements: All numbers in thousands)
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Total Revenue 80,764 57,728 34,842
Cost of Revenue 8,097 5,257 5,772
Gross Profit 72,667 52,471 29,070
Operating Expenses:
Research & Development 20,111 34,298 27,268
Selling, General & Administrative 48,931 40,245 26,397
Non-Recurring Expenses 0 0 -7,500
Other Operating Expenses 0 0 0
Total Operating Expenses 0 0 0
Operating Income or Loss 3,625 -22,072 -17,095
Income from Continuing Operations:
Total Other Income/Expenses Net 839 1,050 2,349
Earnings Before Interest & Taxes 4,464 -21,022 -14,746
Interest Expense 572 1,001 555
Income Before Taxes 3,892 -22,023 -15,301
Income Tax Expense -4 -15 1
Minority Interest 0 0 0
Net Income from Continuing Op.s 3,896 -22,008 -15,302
Non-recurring Events:
Discontinued Operations 0 0 0
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 3,896 -22,008 -15,302
Preferred Stock & Other Adjustmnts 0 0 -541
Net Income Avail To Common Shares 3,896 -22,008 -15,843
Quarterly Income Statements: All numbers in thousands)
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Sep30,2010
Total Revenue 21,218 83,101 20,859 20,127
Cost of Revenue 2,140 1,635 1,136 2,499
Gross Profit 19,078 81,466 19,723 17,628
Operating Expenses:
Research & Development 4,043 5,154 5,751 4,602
Selling, General & Adminis. 21,030 -22,497 12,759 11,103
Non-Recurring Expenses 0 0 0 0
Other Operating Expenses 0 0 0 0
Total Operating Expenses 0 0 0 0
Operating Income or Loss -5,995 98,809 1,213 1,923
Income from Continuing Operations:
Total Other Income/Expenses Net 357 79 588 101
Earnings Before Int. & Taxes -5,638 98,888 1,801 2,024
Interest Expense 40 69 101 131
Income Before Taxes -5,678 98,819 1,700 1,893
Income Tax Expense 1 2 -8 2
Minority Interest 0 0 0 0
Net Income from Continuing Op.s -5,679 98,817 1,708 1,891
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income -5,679 98,817 1,708 1,891
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs -5,679 98,817 1,708 1,891
Annual Balance Sheets: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Current Assets:
Cash & Cash Equivalents 22,526 26,821 22,127
Short Term Investments 47,825 42,922 59,932
Net Receivables 6,347 4,933 3,675
Inventory 1,571 2,565 2,849
Other Current Assets 1,330 1,185 5,404
Total Current Assets 79,599 78,426 93,987
Long-Term Investments 6,537 12,016 0
Property, Plant & Equipt 698 942 900
Goodwill 0 0 0
Intangible Assets 0 0 0
Accumulated Amortization 0 0 0
Other Assets 197 197 197
Deferred Long Term Asset Charges 0 0 0
Total Assets 87,031 91,581 95,084
Current Liabilities:
Accounts Payable 18,473 15,222 12,848
Short/Current Long Term Debt 2,170 3,747 3,356
Other Current Liabilities 12,341 13,233 6,174
Total Current Liabilities 32,984 32,202 22,378
Long Term Debt 0 2,170 5,775
Other Liabilities 15 177 569
Deferred LT Liability Charges 30,926 41,306 33,209
Minority Interest 0 0 0
Negative Goodwill 0 0 0
Total Liabilities 63,925 75,855 61,931
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 191,343 187,895 183,196
Retained Earnings -168,306 -172,202 -150,194
Treasury Stock 0 0 0
Capital Surplus 0 0 0
Other Stockholder Equity 69 33 151
Total Stockholder Equity 23,106 15,726 33,153
Net Tangible Assets 23,106 15,726 33,153
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Sep30,2010
Current Assets:
Cash & Cash Equivalents 36,311 83,850 22,526 20,225
Short Term Investments 77,522 51,895 47,825 46,609
Net Receivables 7,944 16,778 6,347 9,270
Inventory 5,014 3,465 1,571 962
Other Current Assets 2,918 2,327 1,330 1,958
Total Current Assets 129,709 158,315 79,599 79,024
Long-Term Investments 50,377 22,045 6,537 9,574
Property, Plant & Equipt 994 782 698 686
Goodwill 0 0 0 0
Intangible Assets 0 0 0 0
Accumulated Amortization 0 0 0 0
Other Assets 181 197 197 197
Deferred LT Asset Charges 0 0 0 0
Total Assets 181,261 181,339 87,031 89,481
Current Liabilities:
Accounts Payable 23,522 18,788 18,473 15,570
Current Portion LT Debt 121 1,160 2,170 3,149
Other Current Liabilities 8,471 12,464 12,341 16,906
Total Current Liabilities 32,114 32,412 32,984 35,625
Long Term Debt 0 0 0 0
Other Liabilities 0 0 15 59
Deferred LT Liab. Charges 23,328 23,954 30,926 33,370
Minority Interest 0 0 0 0
Negative Goodwill 0 0 0 0
Total Liabilities 55,442 56,366 63,925 69,054
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 200,831 194,404 191,343 190,342
Retained Earnings -75,167 -69,489 -168,306 -170,014
Treasury Stock 0 0 0 0
Capital Surplus 0 0 0 0
Other Stockholder Equity 155 58 69 99
Total Stockholder Equity 125,819 124,973 23,106 20,427
Net Tangible Assets 125,819 124,973 23,106 20,427
Annual Cash Flow: All Numbers in Thousands
Period Ending Dec31,2010 Dec31,2009 Dec31,2008
Net Income 3,896 98,817 -15,302
Operating Activites:
Depreciation 439 808 1,148
Adjustments to Net Income 2,031 2,656 2,452
Changes in Accounts Recv'bls -1,414 -1,259 -51
Changes in Liabilities -8,183 17,139 17,676
Changes in Inventories 995 283 415
Changes in Other Op'ing Actv's 0 4,219 -2,987
Total Cash Flow fr Operations -2,381 1,838 3,351
Investing Activities:
Capital Expenditures -179 -629 -257
Investments 691 4,755 -4,866
Other Cash Flows fr Investing 0 0 0
Total Cash Flows fr Investing 512 4,126 -5,123
Financing Acitivies:
Dividends Paid 0 0 0
Sale or Purchase of Stock 1,417 2,042 441
Net Borrowings -3,844 -3,312 9,084
Other Cash Flows fr Financing 0 0 0
Total Cash Flows fr Financing -2,427 -1,270 9,525
Effect of Exchange Rate Change 0 0 0
Change in Cash & Cash Equiv.s -4,296 4,694 7,753
Quarterly Cash Flow: All Numbers in Thousands
Period Ending Jun30,2011 Mar31,2011 Dec31,2010 Sep30,2010
Net Income -5,679 98,817 1,708 1,891
Operating Activites:
Depreciation -26 149 108 121
Adjustments to Net Income 1,165 702 448 476
Changes in Accounts Recv'bls 8,833 -10,430 2,923 -4,810
Changes in Liabilities 116 -6,548 -4,150 2,405
Changes in Inventories -1,549 -1,894 -608 514
Changes in Other Oper'g Acts 0 -998 627 -391
Total Cash Flow f Operations 2,286 79,798 1,056 206
Investing Activities:
Capital Expenditures -282 -162 -93 -28
Investments -53,742 -19,636 1,834 -1,536
Other Cash Flows fr Investing 0 0 0 0
Total Cash Flows fr Investing -54,024 -19,798 1,741 -1,564
Financing Acitivies:
Dividends Paid 0 0 0 0
Sale or Purchase of Stock 5,263 2,358 507 311
Net Borrowings -1,064 -1,034 -1,004 -973
Other Cash Flows fr Financing 0 0 0 0
Total Cash Flows fr Financing 4,199 1,324 -497 -662
Effect of Exchange Rate Chg 0 0 0 0
Change in Cash & Cash Equiv. -47,539 61,324 2,300 -2,020
DEPO DepoMed Inc. [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 3.0000 P/E Ratio > 5? 0.0000
P/E Ratio Vs Growth Rate: -1.6400 Forward P/E Ratio < 28? 0.1634
Sales Tests:
Price/Sales Ratio < 2.3? 1.1735 Inventory/Sales < 5%? 2.5705
Sales < $1 billion? 3.0000 Operating Margin < 7.5%? 0.1948
Balance Sheet Tests:
Debt/Equity < 0.40? 3.0000 Long-Term Debt Service: 3.0000
LTD Being Reduced? 1.2000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 2.0200 Working Capital >= 1.5? 0.4952
Leverage Ratio < 20%? 3.0000 Debt / Assets < 1? 1.0000
Quick Ratio > 1? 1.3781 Inventory Turnover > 1? 0.2000
Shares Out Decreasing? 0.6000 Market Cap.> 1.5 Billion? 3.0000
Profit Margin > 7.5%? 3.0000
Income Tests:
Dividend Yield > 2.0%? 0.0000 EPS Annual Growth > 10%? 0.2000
Enterprise Value/Revenue: 0.8400 EPS 5-yr Growth > 20%? 0.0000
Enterprise Value/EBITDA: 0.4643 EPS Growth Consistent? 1.2000
EPS Qrtly Growth > 10%? 0.0000 Collection < 45 days? 1.5688
Rev. Qtrly Growth > 15%? -1.9650 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? 0.2000 Borrowing Int. Rate< 6%? 1.0000
Stock Performance Tests:
Volatility > 25%? 3.0000 % Held by Insiders < 5%? 0.4766
Beta > 1.25? 1.3760 % Held by Institut. < 50? 0.9381
50 Da MA > 200 Da MA? 0.3852 % Held by Institut. > 30? 1.7767
52-Wk Change vs. S&P 500: 1.2054 Short Ratio > 5? 1.2800
Price/Book Value < 3? 1.7400 Short % of Float > 20? 0.6300
Return on Assets > 17%? 1.5429 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 2.7079 Positive Free Cash Flow? 1.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: 0.6604
Cash Flow / Assets >.10? 1.6981
DEPO DepoMed Inc. Overall Zenith Index: 1.3690
Financial Statements |
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value (PEG) |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for Depotmed Inc.:
Symbol? DEPO
Total Months Available: 139
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
5.60 3.42 10.30 5.40 9.26 4.53
RANGE = 10.30 TO 3.42 Close = 5.14
CHANNEL = 5.60 TO 5.40 Degree = 0
Volatility = 3.89% Index = 0
Intraday Chart |
20 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | - 1 |
| Comparison | + 1 |
| Industry | + 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings < 1% | - 1 |
| Cash Flow | + 1 |
| Ratios | + 1 |
| Market Grader | + 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | 0 |
| Stock Scout | - 1 |
| Projected Earnings | + 1 |
| Research Reports | - 1 |
| Analysts | + 1 |
| Executive Perquisites | + 1 |
| Insider Activity | - 1 |
| Institutional Activity | - 1 |
| Management Reporting | + 1 |
| Short Interest | - 1 |
| Sentiment | - 1 |
| Standard & Poor's | - 1 |
| Moving Average | - 1 |
| Right Time Study | - 1 |
| Stock Fetcher | + 1 |
| Point & Figure | - 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | - 1 |
| Time Series Chart | + 1 |
| Neural Network | + 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | + 1 |
| Total | + 2 |
Place 5,680 shares of Depotmed, Inc. (DEPO) on the Active List.
