Looking for growth without the hefty price tag? Consider NASDAQ:CPRX.

Last update: Oct 9, 2024

CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) was identified as an affordable growth stock by our stock screener. NASDAQ:CPRX is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Evaluating Growth: 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:

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

ChartMill's Evaluation of Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:CPRX was assigned a score of 7 for valuation:

Compared to the rest of the industry, the Price/Earnings ratio of CPRX indicates a rather cheap valuation: CPRX is cheaper than 95.07% of the companies listed 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 96.83% of the companies listed in the same industry.
CPRX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.29.
95.60% of the companies in the same industry are more expensive than CPRX, based on the Enterprise Value to EBITDA ratio.
98.42% of the companies in the same industry are more expensive than CPRX, based on the Price/Free Cash Flow ratio.
The 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.

Evaluating Health: NASDAQ:CPRX

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:CPRX has achieved a 8 out of 10:

CPRX has an Altman-Z score of 16.67. This indicates that CPRX is financially healthy and has little risk of bankruptcy at the moment.
CPRX has a better Altman-Z score (16.67) than 92.25% 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.
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.
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.

Profitability Assessment of NASDAQ:CPRX

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:CPRX has achieved a 8:

Looking at the Return On Assets, with a value of 9.64%, CPRX belongs to the top of the industry, outperforming 96.48% of the companies in the same industry.
Looking at the Return On Equity, with a value of 11.19%, CPRX belongs to the top of the industry, outperforming 95.77% of the companies in the same industry.
CPRX has a Return On Invested Capital of 10.83%. This is amongst the best in the industry. CPRX outperforms 95.95% of its industry peers.
CPRX had an Average Return On Invested Capital over the past 3 years of 20.38%. This is significantly above the industry average of 13.75%.
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 has a Profit Margin of 15.68%. This is amongst the best in the industry. CPRX outperforms 96.65% of its industry peers.
CPRX has a better Operating Margin (19.76%) than 96.48% of its industry peers.
Looking at the Gross Margin, with a value of 86.67%, CPRX belongs to the top of the industry, outperforming 89.79% of the companies in the same industry.

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

For an up to date full fundamental analysis you can check the fundamental report of CPRX

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.