Looking for growth without the hefty price tag? Consider CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX).

Our stock screening tool has pinpointed CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) as a growth stock that isn't overvalued. NASDAQ:CPRX is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

Deciphering NASDAQ:CPRX's Growth Rating

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 8 out of 10:

• CPRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.73%, which is quite impressive.
• CPRX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.29% yearly.
• CPRX shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.47%.
• Measured over the past years, CPRX shows a very strong growth in Revenue. The Revenue has been growing by 36.89% on average per year.
• The Revenue is expected to grow by 11.98% on average over the next years. This is quite good.

Looking at the Valuation

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:CPRX has earned a 8 for valuation:

• Based on the Price/Earnings ratio, CPRX is valued cheaply inside the industry as 96.32% of the companies are valued more expensively.
• CPRX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.71.
• Based on the Price/Forward Earnings ratio, CPRX is valued cheaper than 95.97% 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 22.34.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPRX indicates a rather cheap valuation: CPRX is cheaper than 98.07% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, CPRX is valued cheaply inside the industry as 98.07% of the companies are valued more expensively.
• CPRX has an outstanding profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as CPRX's earnings are expected to grow with 30.97% in the coming years.

Understanding NASDAQ:CPRX's Health Score

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:

• An Altman-Z score of 15.17 indicates that CPRX is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 15.17, CPRX belongs to the best of the industry, outperforming 91.59% 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.
• A Current Ratio of 5.17 indicates that CPRX has no problem at all paying its short term obligations.
• A Quick Ratio of 5.01 indicates that CPRX has no problem at all paying its short term obligations.

Profitability Assessment of 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 9:

• The Return On Assets of CPRX (19.25%) is better than 98.60% of its industry peers.
• The Return On Equity of CPRX (22.52%) is better than 97.37% of its industry peers.
• With an excellent Return On Invested Capital value of 20.21%, CPRX belongs to the best of the industry, outperforming 97.90% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for CPRX is significantly above the industry average of 14.39%.
• CPRX's Profit Margin of 33.33% is amongst the best of the industry. CPRX outperforms 98.25% of its industry peers.
• CPRX has a better Operating Margin (39.68%) than 99.30% of its industry peers.
• CPRX's Operating Margin has improved in the last couple of years.
• The Gross Margin of CPRX (86.00%) is better than 89.32% of its industry peers.

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

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

Keep in mind

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.