CIPHER PHARMACEUTICALS INC (CPH.CA) Stock Fundamental Analysis
TSX:CPH - Toronto Stock Exchange - CA17253X1050 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to CPH. CPH was compared to 34 industry peers in the Pharmaceuticals industry. While CPH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CPH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
CPH had positive earnings in the past year.
CPH had a positive operating cash flow in the past year.
CPH had positive earnings in 4 of the past 5 years.
CPH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.31%, CPH belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
The Return On Equity of CPH (16.04%) is better than 90.91% of its industry peers.
CPH has a better Return On Invested Capital (5.11%) than 84.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CPH is significantly above the industry average of 6.28%.
The 3 year average ROIC (15.05%) for CPH is well above the current ROIC(5.11%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 16.04% | ||
| ROIC | 5.11% |
ROA(3y)24.93%
ROA(5y)18.41%
ROE(3y)28.94%
ROE(5y)22.47%
ROIC(3y)15.05%
ROIC(5y)19.67%
1.3 Margins
CPH has a better Profit Margin (59.92%) than 100.00% of its industry peers.
CPH's Profit Margin has improved in the last couple of years.
The Operating Margin of CPH (37.35%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of CPH has grown nicely.
CPH has a Gross Margin of 80.78%. This is amongst the best in the industry. CPH outperforms 96.97% of its industry peers.
In the last couple of years the Gross Margin of CPH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.35% | ||
| PM (TTM) | 59.92% | ||
| GM | 80.78% |
OM growth 3Y-5.58%
OM growth 5Y16.02%
PM growth 3Y66%
PM growth 5Y109.73%
GM growth 3Y-2.01%
GM growth 5Y-2.11%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CPH is creating some value.
There is no outstanding debt for CPH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.63 indicates that CPH is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.63, CPH belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that CPH is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.41, CPH perfoms like the industry average, outperforming 48.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.63 |
ROIC/WACC0.6
WACC8.51%
2.3 Liquidity
A Current Ratio of 2.00 indicates that CPH has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.00, CPH is in the better half of the industry, outperforming 60.61% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that CPH should not have too much problems paying its short term obligations.
CPH has a Quick ratio of 1.64. This is in the better half of the industry: CPH outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
CPH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.00%.
Measured over the past years, CPH shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.34% on average per year.
CPH shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.05%.
CPH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.44% yearly.
EPS 1Y (TTM)-50%
EPS 3Y66.88%
EPS 5Y48.34%
EPS Q2Q%-96.3%
Revenue 1Y (TTM)25.05%
Revenue growth 3Y-0.7%
Revenue growth 5Y-1.44%
Sales Q2Q%70.9%
3.2 Future
CPH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.07% yearly.
Based on estimates for the next years, CPH will show a very strong growth in Revenue. The Revenue will grow by 36.98% on average per year.
EPS Next Y-9.65%
EPS Next 2Y2.18%
EPS Next 3Y7.07%
EPS Next 5YN/A
Revenue Next Year51.04%
Revenue Next 2Y53.39%
Revenue Next 3Y36.98%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.04, which indicates a correct valuation of CPH.
90.91% of the companies in the same industry are more expensive than CPH, based on the Price/Earnings ratio.
CPH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
CPH is valuated reasonably with a Price/Forward Earnings ratio of 10.68.
CPH's Price/Forward Earnings ratio is rather cheap when compared to the industry. CPH is cheaper than 87.88% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.68. CPH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 10.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CPH is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.26 |
4.3 Compensation for Growth
CPH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y2.18%
EPS Next 3Y7.07%
5. Dividend
5.1 Amount
CPH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CPH (2/21/2025, 7:00:00 PM)
12.5
-0.15 (-1.19%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners1.53%
Inst Owner ChangeN/A
Ins Owners4.63%
Ins Owner ChangeN/A
Market Cap319.88M
Analysts77.5
Price Target19.15 (53.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-45.46%
Min EPS beat(2)-92.76%
Max EPS beat(2)1.84%
EPS beat(4)3
Avg EPS beat(4)54.94%
Min EPS beat(4)-92.76%
Max EPS beat(4)212.66%
EPS beat(8)7
Avg EPS beat(8)163.07%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.05%
Min Revenue beat(2)-2.71%
Max Revenue beat(2)6.82%
Revenue beat(4)2
Avg Revenue beat(4)3.12%
Min Revenue beat(4)-6.92%
Max Revenue beat(4)15.29%
Revenue beat(8)3
Avg Revenue beat(8)4.01%
Revenue beat(12)3
Avg Revenue beat(12)-0.45%
Revenue beat(16)6
Avg Revenue beat(16)1.07%
PT rev (1m)-6.24%
PT rev (3m)4.16%
EPS NQ rev (1m)-41.46%
EPS NQ rev (3m)-41.46%
EPS NY rev (1m)39.47%
EPS NY rev (3m)7.07%
Revenue NQ rev (1m)-4.76%
Revenue NQ rev (3m)-4.76%
Revenue NY rev (1m)-3.56%
Revenue NY rev (3m)-4.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 10.68 | ||
| P/S | 8.52 | ||
| P/FCF | N/A | ||
| P/OCF | 17.23 | ||
| P/B | 2.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.26 |
EPS(TTM)0.89
EY7.12%
EPS(NY)1.17
Fwd EY9.37%
FCF(TTM)-3.72
FCFYN/A
OCF(TTM)0.73
OCFY5.8%
SpS1.47
BVpS5.48
TBVpS-0.16
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.31% | ||
| ROE | 16.04% | ||
| ROCE | 7.09% | ||
| ROIC | 5.11% | ||
| ROICexc | 5.48% | ||
| ROICexgc | 25.28% | ||
| OM | 37.35% | ||
| PM (TTM) | 59.92% | ||
| GM | 80.78% | ||
| FCFM | N/A |
ROA(3y)24.93%
ROA(5y)18.41%
ROE(3y)28.94%
ROE(5y)22.47%
ROIC(3y)15.05%
ROIC(5y)19.67%
ROICexc(3y)29.91%
ROICexc(5y)31.89%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)20.91%
ROCE(5y)27.31%
ROICexcg growth 3Y-42.56%
ROICexcg growth 5YN/A
ROICexc growth 3Y-20.14%
ROICexc growth 5Y2.77%
OM growth 3Y-5.58%
OM growth 5Y16.02%
PM growth 3Y66%
PM growth 5Y109.73%
GM growth 3Y-2.01%
GM growth 5Y-2.11%
F-Score3
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.2 | ||
| Cap/Depr | 2881.1% | ||
| Cap/Sales | 303.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 3.63 |
F-Score3
WACC8.51%
ROIC/WACC0.6
Cap/Depr(3y)6.61%
Cap/Depr(5y)38.73%
Cap/Sales(3y)0.36%
Cap/Sales(5y)2.08%
Profit Quality(3y)98.39%
Profit Quality(5y)147.94%
High Growth Momentum
Growth
EPS 1Y (TTM)-50%
EPS 3Y66.88%
EPS 5Y48.34%
EPS Q2Q%-96.3%
EPS Next Y-9.65%
EPS Next 2Y2.18%
EPS Next 3Y7.07%
EPS Next 5YN/A
Revenue 1Y (TTM)25.05%
Revenue growth 3Y-0.7%
Revenue growth 5Y-1.44%
Sales Q2Q%70.9%
Revenue Next Year51.04%
Revenue Next 2Y53.39%
Revenue Next 3Y36.98%
Revenue Next 5YN/A
EBIT growth 1Y-3.49%
EBIT growth 3Y-6.23%
EBIT growth 5Y14.36%
EBIT Next Year15.09%
EBIT Next 3Y28.34%
EBIT Next 5YN/A
FCF growth 1Y-555.23%
FCF growth 3Y13.2%
FCF growth 5Y61.12%
OCF growth 1Y-11.74%
OCF growth 3Y11.03%
OCF growth 5Y14.61%