NASDAQ:CPRX is showing good growth, while it is not too expensive.

Discover CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX), an undervalued growth gem identified by our stock screener. NASDAQ:CPRX is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

How We Gauge Growth for NASDAQ:CPRX

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:CPRX was assigned a score of 8 for growth:

• CPRX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.48% yearly.
• The Revenue has grown by 43.40% in the past year. This is a very strong growth!
• The Revenue has been growing by 280.39% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 27.45% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 11.42% on average over the next years. This is quite good.

Evaluating Valuation: NASDAQ:CPRX

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:CPRX, the assigned 7 reflects its valuation:

• Based on the Price/Earnings ratio, CPRX is valued cheaper than 95.41% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of CPRX indicates a rather cheap valuation: CPRX is cheaper than 96.47% of the companies listed in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.81, CPRX is valued a bit cheaper.
• CPRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CPRX is cheaper than 96.11% of the companies in the same industry.
• 98.59% of the companies in the same industry are more expensive than CPRX, based on the Price/Free Cash Flow ratio.
• 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 30.79% in the coming years. This may justify a more expensive valuation.

Health Assessment of NASDAQ:CPRX

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:CPRX scores a 8 out of 10:

• An Altman-Z score of 16.82 indicates that CPRX is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 16.82, CPRX belongs to the best of the industry, outperforming 91.87% of the companies in the same industry.
• There is no outstanding debt for CPRX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• CPRX has a Current Ratio of 5.14. This indicates that CPRX is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 4.94 indicates that CPRX has no problem at all paying its short term obligations.

How do we evaluate the Profitability for NASDAQ:CPRX?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:CPRX, the assigned 8 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 9.64%, CPRX belongs to the top of the industry, outperforming 96.82% of the companies in the same industry.
• CPRX has a better Return On Equity (11.19%) than 96.11% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 10.83%, CPRX belongs to the top of the industry, outperforming 96.11% 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 13.00%.
• The last Return On Invested Capital (10.83%) for CPRX is well below the 3 year average (20.38%), which needs to be investigated, but indicates that CPRX had better years and this may not be a problem.
• CPRX's Profit Margin of 15.68% is amongst the best of the industry. CPRX outperforms 97.00% of its industry peers.
• CPRX has a Operating Margin of 19.76%. This is amongst the best in the industry. CPRX outperforms 96.64% of its industry peers.
• The Gross Margin of CPRX (86.67%) is better than 89.93% of its industry peers.

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

Our latest full fundamental report of CPRX contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.