NASDAQ:CPRX stands out as a growth opportunity that won't break the bank.

Last update: Aug 21, 2024

CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:CPRX is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

Deciphering NASDAQ:CPRX's Growth Rating

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:CPRX, the assigned 8 reflects its growth potential:

The Earnings Per Share has been growing by 25.48% on average over the past years. This is a very strong growth
CPRX shows a strong growth in Revenue. In the last year, the Revenue has grown by 43.40%.
Measured over the past years, CPRX shows a very strong growth in Revenue. The Revenue has been growing by 280.39% on average per year.
Based on estimates for the next years, CPRX will show a very strong growth in Earnings Per Share. The EPS will grow by 27.45% on average per year.
CPRX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.42% yearly.

What does the Valuation looks like for NASDAQ:CPRX

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:CPRX scores a 8 out of 10:

Based on the Price/Earnings ratio, CPRX is valued cheaper than 96.31% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, CPRX is valued cheaply inside the industry as 95.96% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CPRX to the average of the S&P500 Index (20.91), we can say CPRX is valued slightly cheaper.
Based on the Enterprise Value to EBITDA ratio, CPRX is valued cheaply inside the industry as 95.96% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CPRX is valued cheaper than 98.95% of the companies in the same industry.
CPRX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of CPRX may justify a higher PE ratio.
CPRX's earnings are expected to grow with 26.83% in the coming years. This may justify a more expensive valuation.

Deciphering NASDAQ:CPRX's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:CPRX has earned a 8 out of 10:

An Altman-Z score of 17.04 indicates that CPRX is not in any danger for bankruptcy at the moment.
CPRX has a Altman-Z score of 17.04. This is amongst the best in the industry. CPRX outperforms 91.21% of its industry peers.
CPRX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
A Current Ratio of 5.14 indicates that CPRX has no problem at all paying its short term obligations.
CPRX has a Quick Ratio of 4.94. This indicates that CPRX is financially healthy and has no problem in meeting its short term obligations.

How do we evaluate the Profitability for NASDAQ:CPRX?

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:CPRX has earned a 8 out of 10:

CPRX's Return On Assets of 9.64% is amongst the best of the industry. CPRX outperforms 97.19% of its industry peers.
With an excellent Return On Equity value of 11.19%, CPRX belongs to the best of the industry, outperforming 96.31% of the companies in the same industry.
With an excellent Return On Invested Capital value of 10.83%, CPRX belongs to the best of the industry, outperforming 96.31% of the companies in the same industry.
CPRX had an Average Return On Invested Capital over the past 3 years of 20.38%. This is significantly above the industry average of 12.61%.
The 3 year average ROIC (20.38%) for CPRX is well above the current ROIC(10.83%). The reason for the recent decline needs to be investigated.
CPRX's Profit Margin of 15.68% is amongst the best of the industry. CPRX outperforms 97.36% of its industry peers.
CPRX has a better Operating Margin (19.76%) than 97.01% of its industry peers.
CPRX has a Gross Margin of 86.67%. This is amongst the best in the industry. CPRX outperforms 89.98% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of CPRX for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.