Despite its impressive fundamentals, NASDAQ:CPRX remains undervalued.

Last update: Dec 3, 2024

Discover CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX)—an undervalued stock our stock screener has picked out. NASDAQ:CPRX demonstrates solid fundamentals, including health and profitability, all while staying attractively priced. Let's explore the details.

Understanding NASDAQ:CPRX's Valuation Score

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NASDAQ:CPRX has received a 8 out of 10:

96.12% of the companies in the same industry are more expensive than CPRX, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.70. CPRX is valued slightly cheaper when compared to this.
96.83% of the companies in the same industry are more expensive than CPRX, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CPRX to the average of the S&P500 Index (24.16), we can say CPRX is valued slightly cheaper.
95.77% of the companies in the same industry are more expensive than CPRX, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CPRX is valued cheaply inside the industry as 97.35% of the companies are valued more expensively.
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 34.80% in the coming years.

What does the Profitability looks like 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:

CPRX has a better Return On Assets (9.64%) than 96.30% of its industry peers.
CPRX's Return On Equity of 11.19% is amongst the best of the industry. CPRX outperforms 95.94% of its industry peers.
The Return On Invested Capital of CPRX (10.83%) is better than 96.12% 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 13.38%.
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 96.30% of its industry peers.
Looking at the Operating Margin, with a value of 19.76%, CPRX belongs to the top of the industry, outperforming 96.47% 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 90.30% of the companies in the same industry.

Health Analysis for 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 18.53 indicates that CPRX is not in any danger for bankruptcy at the moment.
CPRX has a Altman-Z score of 18.53. This is amongst the best in the industry. CPRX outperforms 90.48% 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.
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.

Growth Insights: NASDAQ:CPRX

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:CPRX has received 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.
The Earnings Per Share has been growing by 25.48% on average over the past years. This is a very strong growth
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.

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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.