NASDAQ:CPRX is an undervalued gem with solid fundamentals.

Last update: Nov 12, 2024

Our stock screening tool has pinpointed CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) as an undervalued stock option. NASDAQ:CPRX retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

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 8 reflects its valuation:

Based on the Price/Earnings ratio, CPRX is valued cheaper than 96.43% of the companies in the same industry.
CPRX is valuated rather cheaply when we compare the Price/Earnings ratio to 29.38, which is the current average of the S&P500 Index.
96.43% of the companies in the same industry are more expensive than CPRX, based on the Price/Forward Earnings ratio.
CPRX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.98.
95.19% of the companies in the same industry are more expensive than CPRX, based on the Enterprise Value to EBITDA ratio.
97.86% 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.
A more expensive valuation may be justified as CPRX's earnings are expected to grow with 31.92% in the coming years.

Profitability Examination for NASDAQ:CPRX

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:CPRX scores a 8 out of 10:

Looking at the Return On Assets, with a value of 9.64%, CPRX belongs to the top of the industry, outperforming 96.26% of the companies in the same industry.
With an excellent Return On Equity value of 11.19%, CPRX belongs to the best of the industry, outperforming 95.37% 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 95.72% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CPRX is above the industry average of 15.51%.
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 has a Profit Margin of 15.68%. This is amongst the best in the industry. CPRX outperforms 96.26% of its industry peers.
CPRX's Operating Margin of 19.76% is amongst the best of the industry. CPRX outperforms 96.26% of its industry peers.
CPRX's Gross Margin of 86.67% is amongst the best of the industry. CPRX outperforms 90.55% of its industry peers.

Exploring NASDAQ:CPRX's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:CPRX has earned a 8 out of 10:

An Altman-Z score of 19.56 indicates that CPRX is not in any danger for bankruptcy at the moment.
CPRX has a better Altman-Z score (19.56) than 91.98% of its industry peers.
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.
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.

Growth Insights: NASDAQ:CPRX

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:CPRX has achieved a 9 out of 10:

CPRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 63.89%, which is quite impressive.
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.
The Revenue has grown by 85.90% in the past year. This is a very strong growth!
CPRX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 280.39% yearly.
CPRX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.45% yearly.
CPRX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.42% yearly.

More Decent Value stocks can be found in our Decent Value 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.