NASDAQ:CPRX: good value for what you're paying.

Last update: Feb 5, 2025

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.

A Closer Look at Valuation for NASDAQ:CPRX

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:CPRX scores a 8 out of 10:

Based on the Price/Earnings ratio, CPRX is valued cheaper than 95.75% of the companies in the same industry.
CPRX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.47.
96.28% of the companies in the same industry are more expensive than CPRX, based on the Price/Forward Earnings ratio.
CPRX is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, CPRX is valued cheaply inside the industry as 97.35% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CPRX is valued cheaply inside the industry as 98.05% 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.
CPRX's earnings are expected to grow with 32.80% in the coming years. This may justify a more expensive valuation.

Evaluating Profitability: 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 (18.50%) than 98.41% of its industry peers.
CPRX has a Return On Equity of 21.61%. This is amongst the best in the industry. CPRX outperforms 97.35% of its industry peers.
CPRX has a better Return On Invested Capital (20.22%) than 98.23% 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 13.85%.
With an excellent Profit Margin value of 31.01%, CPRX belongs to the best of the industry, outperforming 98.23% of the companies in the same industry.
CPRX has a better Operating Margin (37.78%) than 99.11% of its industry peers.
CPRX has a Gross Margin of 86.32%. This is amongst the best in the industry. CPRX outperforms 89.73% of its industry peers.

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:

CPRX has an Altman-Z score of 17.31. This indicates that CPRX is financially healthy and has little risk of bankruptcy at the moment.
CPRX's Altman-Z score of 17.31 is amongst the best of the industry. CPRX outperforms 91.33% 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 5.11. 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.

Evaluating Growth: 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.
The Earnings Per Share has been growing by 25.48% on average over the past years. This is a very strong growth
Looking at the last year, CPRX shows a very strong growth in Revenue. The Revenue has grown by 32.13%.
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 32.43% yearly.
Based on estimates for the next years, CPRX will show a quite strong growth in Revenue. The Revenue will grow by 14.29% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

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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.