ADMA

ADMA has crossed from cash-burning hopeful to durably profitable specialty-biologics manufacturer, and the multiple hasn't caught up. Revenue has compounded relentlessly ($81M→$154M→$258M→$426M→$510M) and FY2025's $510M (+19.6%) was the most profitable yet at the operating line: gross profit +33.3% to $293M (57.4% margin) and operating income +37.7% to $191M (37.5% margin). The headline net income drop to $147M (-25.7%) is misleading — operating income grew nearly 40%, so the decline is a tax-normalization artifact after FY2024's first-ever GAAP-profit year (which the MD&A confirms included the inflection to $197.7M net income and $118.7M operating cash flow). ROE of 30.8% and a liabilities/equity of just 0.31x signal a high-return, lightly-levered business.

Valuation is the crux of the call. At $8.37 the stock trades at 13.9x diluted EPS of $0.60 and 3.9x sales for a company growing ~20% with ~37% operating margins — a sub-1 PEG on operating earnings. The market is pricing maturity into a name still expanding capacity (Boca facility toward 600,000 liters) and demand for ASCENIV, the higher-margin driver management credits for the inflection. The April 2025 FDA approval of the Yield Enhancement PAS structurally lifts margins on both ASCENIV and BIVIGAM, supporting the case that operating leverage continues rather than fades.