ADMA Biologics, Inc. (ADMA): A Bull Case Theory

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Ricardo PillaiWed, Aug 27, 2025, 2:58 PM 3 min readWe came across a bullish thesis on ADMA Biologics, Inc. on Archive Invest’s Substack by Felix. In this article, we will summarize the bulls’ thesis on ADMA. ADMA Biologics, Inc.'s share was trading at $17.80 as of August 22nd. ADMA’s trailing and forward P/E were 20.94 and 28.99 respectively according to Yahoo Finance.Adma Biologics (ADMA) has delivered a remarkable financial turnaround, with 2024 standing out as a pivotal year. Gross profit has compounded at an impressive 34% CAGR from 2020 to 2024, reflecting strong topline expansion. Net income has moved from a loss of $75.5 million in 2020 to profitability of $197.7 million in 2024, marking a significant inflection point. Operating income turned positive in 2023 and has accelerated since, while free cash flow now stands around $110 million, cementing the company’s move into consistent profitability.These gains are further supported by robust margins, both at the gross and net income levels, underscoring operational discipline. Return on invested capital has surged to an extraordinary 78%, indicating highly effective capital allocation, while goodwill remains negligible, highlighting that growth is being achieved organically rather than through acquisitions. Capex requirements have also declined, further enhancing free cash generation.While insider ownership sits around 2%, below the 10% benchmark often favored by investors, founders remain active in the business, signaling alignment with shareholder interests. Stock-based compensation, though impacting free cash flow accounting, is small relative to overall FCF and does not materially alter the investment case. ADMA has also initiated buybacks, including a $5 million program in 2024, reflecting confidence in future performance, though some investors may prefer reinvestment over repurchases.Valuation metrics strengthen the appeal, with forward P/E and P/FCF both trading below historical medians, suggesting meaningful undervaluation. With accelerating profitability, strong capital efficiency, and expanding margins, ADMA presents a compelling investment case with significant upside potential.Previously we covered a bullish thesis on Bio-Techne Corporation (TECH) by scuttleblurb in May 2025, which highlighted its diversified model across proteins, diagnostics, and CGT while noting cyclical risks. The company’s stock price has depreciated approximately by 19.11% since our coverage. This is because growth expectations were reset after COVID tailwinds faded. The thesis still stands as organic growth rebounds. Felix shares a similar bullish stance on ADMA Biologics, but emphasizes profitability inflection and undervaluation.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,511.75 -5.75 (-0.09%)Dow Futures45,644.00 -62.00 (-0.14%)Nasdaq Futures23,730.50 -38.50 (-0.16%)Russell 2000 Futures2,382.30 +0.10 (+0.00%)VIX14.43 -0.42 (-2.83%)Gold3,472.60 -1.70 (-0.05%)PortfolioSign in to access your portfolioSign inTop gainersPSTG Pure Storage, Inc. 80.54 +19.68 (+32.34%)SNOW Snowflake Inc. 241.00 +40.61 (+20.27%)BILL BILL Holdings, Inc. 49.20 +7.57 (+18.18%)TCOM Trip.com Group Limited 75.03 +9.74 (+14.92%)TIGR UP Fintech Holding Limited 12.81 +1.24 (+10.72%)Top losersARX Accelerant Holdings 21.57 -7.72 (-26.36%)TLX Telix Pharmaceuticals Limited 10.15 -1.95 (-16.12%)HMY Harmony Gold Mining Company Limited 12.61 -2.06 (-14.04%)HRL Hormel Foods Corporation 25.22 -3.80 (-13.09%)COO The Cooper Companies, Inc. 64.58 -9.52 (-12.85%)Most activeWBA Walgreens Boots Alliance, Inc. 11.98 0.00 (0.00%)NVDA NVIDIA Corporation 180.17 -1.43 (-0.79%)OPEN Opendoor Technologies Inc. 4.2700 +0.2500 (+6.22%)LCID Lucid Group, Inc. 2.0700 -0.0100 (-0.48%)RGTI Rigetti Computing, Inc. 16.58 +1.19 (+7.73%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersMRVL Marvell Technology, Inc. 77.23 +2.44 (+3.26%)AFRM Affirm Holdings, Inc. 79.99 +2.40 (+3.09%)DELL Dell Technologies Inc. 134.05 +1.55 (+1.17%)IREN IREN Limited 23.04 +0.69 (+3.06%)ULTA Ulta Beauty, Inc. 530.63 -3.18 (-0.60%)Top economic events