Don't overlook NASDAQ:CPRX—a stock with solid growth prospects and a reasonable valuation.

Last update: Dec 11, 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.

Analyzing Growth Metrics

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:

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.
Looking at the last year, CPRX shows a very strong growth in Revenue. The Revenue has grown by 85.90%.
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.

Valuation Analysis for NASDAQ:CPRX

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:CPRX has achieved a 8 out of 10:

CPRX's Price/Earnings ratio is rather cheap when compared to the industry. CPRX is cheaper than 96.11% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.16, CPRX is valued a bit cheaper.
Based on the Price/Forward Earnings ratio, CPRX is valued cheaper than 96.64% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CPRX to the average of the S&P500 Index (23.72), we can say CPRX is valued slightly cheaper.
CPRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CPRX is cheaper than 95.76% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CPRX is valued cheaply inside the industry as 97.70% 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.
CPRX has an outstanding profitability rating, which may justify a higher PE ratio.
CPRX's earnings are expected to grow with 34.80% in the coming years. This may justify a more expensive valuation.

Health Analysis for 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 18.23. This indicates that CPRX is financially healthy and has little risk of bankruptcy at the moment.
CPRX has a Altman-Z score of 18.23. This is amongst the best in the industry. CPRX outperforms 90.81% 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.
A Current Ratio of 5.14 indicates that CPRX has no problem at all paying its short term obligations.
A Quick Ratio of 4.94 indicates that CPRX has no problem at all paying its short term obligations.

Profitability Assessment of 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 96.11% of its industry peers.
CPRX has a better Return On Equity (11.19%) than 95.94% 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.
The Average Return On Invested Capital over the past 3 years for CPRX is significantly above the industry average of 13.58%.
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.
Looking at the Profit Margin, with a value of 15.68%, CPRX belongs to the top of the industry, outperforming 96.29% of the companies in the same industry.
CPRX's Operating Margin of 19.76% is amongst the best of the industry. CPRX outperforms 96.47% of its industry peers.
The Gross Margin of CPRX (86.67%) is better than 90.11% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Check the latest full fundamental report of CPRX for a complete fundamental analysis.

Disclaimer

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.