Aspen Pharmacare Holdings Limited (APN.JO) stock analysis

In our weekly check, Aspen Pharmacare Holdings Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 6, red flags: 7.

About Aspen Pharmacare Holdings Limited

Aspen Pharmacare Holdings Limited is a Healthcare company (Drug Manufacturers - Specialty & Generic) based in South Africa, listed on JNB as APN.JO.

What our checks show for APN.JO

Red flags

• Operating profit does not cover the interest bill (0.2x): interest is paid from cash or new debt.
• The net margin fell by 9.2 points over 5 years, to 7.6%: the company keeps less of each sale as profit.
• The gross margin fell by 7.1 points, to 40.3%: costs are rising faster than prices.
• Revenue fell 5% a year over the last 3 years.
• The dividend takes 595% of profit: little cushion if profit falls.
• A small company (market value $41 million): usually riskier and followed by fewer analysts.
• The stock has fallen as much as 85% from a peak. Would you have held through that?

Warning signs

• Earnings per share fell 20.3% a year over the last 3 years.
• Net profit fell 20.3% a year over the last 3 years.
• The net margin is only 7.6%: little room if costs rise.
• The price swings a lot: 36.7% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 5.9%.

Strengths

• Debt is low: 0.19x equity.
• Operating cash flow is 2.6x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 26.4% a year over the next years.
• Analysts expect the net margin to improve by 7.5 points from today's 7.6%.
• Free cash flow is 13.6% of revenue: cash for dividends, buybacks or growth.
• Beta 0.29: the stock usually moves less than the market.

Similar companies

MRK.DE · TAK · TEVA · GALD.SW · HLN · SDZ.SW

Questions

What grade does Aspen Pharmacare Holdings Limited (APN.JO) have?

In our weekly check, Aspen Pharmacare Holdings Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 6, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of APN.JO stock?

This week's biggest flags for Aspen Pharmacare Holdings Limited: Weak interest cover, Margins falling, Gross margin falling. In total 13 of 25 checks show a warning or a red flag.

What does Aspen Pharmacare Holdings Limited do?

Aspen Pharmacare Holdings Limited is a Healthcare company (Drug Manufacturers - Specialty & Generic) based in South Africa, listed on JNB as APN.JO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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