NASDAQ:CPRX, a growth stock which is not overvalued.

Here's CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) for you, a growth stock our stock screener believes is undervalued. NASDAQ:CPRX is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Assessing Growth for 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:

• The Earnings Per Share has grown by an impressive 63.89% over the past year.
• CPRX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.48% yearly.
• The Revenue has grown by 32.13% in the past year. This is a very strong growth!
• The Revenue has been growing by 280.39% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 32.43% on average over the next years. This is a very strong growth
• CPRX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.81% yearly.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Evaluating Valuation: 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:

• Based on the Price/Earnings ratio, CPRX is valued cheaply inside the industry as 95.87% of the companies are valued more expensively.
• Compared to an average S&P500 Price/Earnings ratio of 27.17, CPRX is valued a bit cheaper.
• CPRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. CPRX is cheaper than 96.77% of the companies in the same industry.
• CPRX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.59.
• 97.67% of the companies in the same industry are more expensive than CPRX, based on the Enterprise Value to EBITDA ratio.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of CPRX indicates a rather cheap valuation: CPRX is cheaper than 98.03% 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 34.80% in the coming years. This may justify a more expensive valuation.

Evaluating Health: 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 15.88 indicates that CPRX is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 15.88, CPRX belongs to the best of the industry, outperforming 91.20% of the companies in the same industry.
• 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 5.11. This indicates that CPRX is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 4.92 indicates that CPRX has no problem at all paying its short term obligations.

How do we evaluate the Profitability for 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:

• The Return On Assets of CPRX (18.50%) is better than 98.38% of its industry peers.
• CPRX has a Return On Equity of 21.61%. This is amongst the best in the industry. CPRX outperforms 97.31% of its industry peers.
• The Return On Invested Capital of CPRX (20.22%) is better than 98.20% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for CPRX is significantly above the industry average of 13.83%.
• With an excellent Profit Margin value of 31.01%, CPRX belongs to the best of the industry, outperforming 98.20% of the companies in the same industry.
• CPRX has a better Operating Margin (37.78%) than 99.10% of its industry peers.
• CPRX has a better Gross Margin (86.32%) than 89.59% of its industry peers.

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

Our latest full fundamental report of CPRX contains the most current fundamental analsysis.

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.