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

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.

How do we evaluate the Growth for NASDAQ:CPRX?

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:CPRX has earned a 9 for growth:

• The Earnings Per Share has grown by an impressive 63.89% over the past year.
• 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 85.90%.
• The Revenue has been growing by 280.39% on average over the past years. This is a very strong growth!
• 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.

Exploring NASDAQ:CPRX's Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:CPRX boasts a 8 out of 10:

• CPRX's Price/Earnings ratio is rather cheap when compared to the industry. CPRX is cheaper than 96.08% of the companies in the same industry.
• CPRX is valuated rather cheaply when we compare the Price/Earnings ratio to 28.58, which is the current average of the S&P500 Index.
• Compared to the rest of the industry, the Price/Forward Earnings ratio of CPRX indicates a rather cheap valuation: CPRX is cheaper than 96.08% 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 23.52.
• Based on the Enterprise Value to EBITDA ratio, CPRX is valued cheaper than 95.72% of the companies in the same industry.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of CPRX indicates a rather cheap valuation: CPRX is cheaper than 97.86% of the companies listed in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• CPRX has an outstanding profitability rating, which may justify a higher PE ratio.
• CPRX's earnings are expected to grow with 31.92% in the coming years. This may justify a more expensive valuation.

Assessing Health Metrics for NASDAQ:CPRX

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 17.70 indicates that CPRX is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 17.70, CPRX belongs to the best of the industry, outperforming 91.80% of the companies in the same industry.
• 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.
• A Quick Ratio of 4.94 indicates that CPRX has no problem at all paying its short term obligations.

Profitability Insights: 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:

• The Return On Assets of CPRX (9.64%) is better than 96.08% of its industry peers.
• CPRX has a better Return On Equity (11.19%) than 95.54% of its industry peers.
• The Return On Invested Capital of CPRX (10.83%) is better than 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 15.38%.
• 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.
• The Profit Margin of CPRX (15.68%) is better than 95.90% of its industry peers.
• Looking at the Operating Margin, with a value of 19.76%, CPRX belongs to the top of the industry, outperforming 96.08% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 86.67%, CPRX belongs to the top of the industry, outperforming 90.02% of the companies in the same industry.

More Affordable Growth stocks can be found 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.