Investors should take note of NASDAQ:CPRX, a growth stock that remains attractively priced.

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.

A Closer Look at 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!
• CPRX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 280.39% yearly.
• Based on estimates for the next years, CPRX will show a very strong growth in Earnings Per Share. The EPS will grow by 32.43% on average per year.
• 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.

Valuation Assessment of NASDAQ:CPRX

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:

• CPRX's Price/Earnings ratio is rather cheap when compared to the industry. CPRX is cheaper than 95.58% of the companies in the same industry.
• CPRX is valuated rather cheaply when we compare the Price/Earnings ratio to 29.39, which is the current average of the S&P500 Index.
• Based on the Price/Forward Earnings ratio, CPRX is valued cheaper than 96.11% of the companies in the same industry.
• CPRX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 94.38.
• CPRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CPRX is cheaper than 97.17% 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 98.05% 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.
• 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.

Health Examination for NASDAQ:CPRX

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:CPRX has earned a 8 out of 10:

• CPRX has an Altman-Z score of 16.98. This indicates that CPRX is financially healthy and has little risk of bankruptcy at the moment.
• CPRX has a better Altman-Z score (16.98) than 90.80% 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.
• 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.
• CPRX has a Quick Ratio of 4.92. This indicates that CPRX is financially healthy and has no problem in meeting its short term obligations.

Looking at the Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:CPRX was assigned a score of 8 for profitability:

• CPRX has a better Return On Assets (18.50%) than 98.41% of its industry peers.
• Looking at the Return On Equity, with a value of 21.61%, CPRX belongs to the top of the industry, outperforming 97.35% of the companies in the same industry.
• The Return On Invested Capital of CPRX (20.22%) is better than 98.23% 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 13.84%.
• CPRX has a Profit Margin of 31.01%. This is amongst the best in the industry. CPRX outperforms 98.23% of its industry peers.
• With an excellent Operating Margin value of 37.78%, CPRX belongs to the best of the industry, outperforming 99.11% of the companies in the same industry.
• The Gross Margin of CPRX (86.32%) is better than 89.73% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.