CIPHER PHARMACEUTICALS INC (CPH.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:CPH • CA17253X1050
14.63 CAD
+0.12 (+0.83%)
Last: Jan 30, 2026, 07:00 PM
Taking everything into account, CPH scores 7 out of 10 in our fundamental rating. CPH was compared to 33 industry peers in the Pharmaceuticals industry. CPH gets an excellent profitability rating and is at the same time showing great financial health properties. CPH is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make CPH suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year CPH was profitable.
- In the past year CPH had a positive cash flow from operations.
- CPH had positive earnings in each of the past 5 years.
- Each year in the past 5 years CPH had a positive operating cash flow.
1.2 Ratios
- With an excellent Return On Assets value of 11.77%, CPH belongs to the best of the industry, outperforming 91.18% of the companies in the same industry.
- CPH has a better Return On Equity (15.23%) than 88.24% of its industry peers.
- With an excellent Return On Invested Capital value of 7.23%, CPH belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CPH is in line with the industry average of 8.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.77% | ||
| ROE | 15.23% | ||
| ROIC | 7.23% |
ROA(3y)22.3%
ROA(5y)18.43%
ROE(3y)26.05%
ROE(5y)22.41%
ROIC(3y)8.42%
ROIC(5y)14.92%
1.3 Margins
- With an excellent Profit Margin value of 34.68%, CPH belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of CPH has grown nicely.
- CPH has a Operating Margin of 25.51%. This is amongst the best in the industry. CPH outperforms 85.29% of its industry peers.
- CPH's Operating Margin has declined in the last couple of years.
- CPH's Gross Margin of 74.32% is amongst the best of the industry. CPH outperforms 94.12% of its industry peers.
- CPH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.51% | ||
| PM (TTM) | 34.68% | ||
| GM | 74.32% |
OM growth 3Y-26.62%
OM growth 5Y-14.41%
PM growth 3Y-0.73%
PM growth 5Y19.11%
GM growth 3Y-4.61%
GM growth 5Y-3.67%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CPH is destroying value.
- The number of shares outstanding for CPH has been increased compared to 1 year ago.
- Compared to 5 years ago, CPH has less shares outstanding
- Compared to 1 year ago, CPH has a worse debt to assets ratio.
2.2 Solvency
- CPH has an Altman-Z score of 6.42. This indicates that CPH is financially healthy and has little risk of bankruptcy at the moment.
- CPH's Altman-Z score of 6.42 is amongst the best of the industry. CPH outperforms 91.18% of its industry peers.
- The Debt to FCF ratio of CPH is 0.45, which is an excellent value as it means it would take CPH, only 0.45 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CPH (0.45) is better than 94.12% of its industry peers.
- A Debt/Equity ratio of 0.12 indicates that CPH is not too dependend on debt financing.
- CPH has a Debt to Equity ratio of 0.12. This is in the better half of the industry: CPH outperforms 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 6.42 |
ROIC/WACC0.85
WACC8.48%
2.3 Liquidity
- A Current Ratio of 1.30 indicates that CPH should not have too much problems paying its short term obligations.
- CPH has a Current ratio of 1.30. This is in the lower half of the industry: CPH underperforms 64.71% of its industry peers.
- A Quick Ratio of 0.98 indicates that CPH may have some problems paying its short term obligations.
- CPH has a Quick ratio of 0.98. This is comparable to the rest of the industry: CPH outperforms 41.18% of its industry peers.
- The current and quick ratio evaluation for CPH is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
- CPH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.76%.
- Measured over the past years, CPH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.97% on average per year.
- CPH shows a strong growth in Revenue. In the last year, the Revenue has grown by 89.17%.
- Measured over the past years, CPH shows a quite strong growth in Revenue. The Revenue has been growing by 8.25% on average per year.
EPS 1Y (TTM)4.76%
EPS 3Y14.06%
EPS 5Y12.97%
EPS Q2Q%2000%
Revenue 1Y (TTM)89.17%
Revenue growth 3Y14.99%
Revenue growth 5Y8.25%
Sales Q2Q%23.75%
3.2 Future
- CPH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.66% yearly.
- Based on estimates for the next years, CPH will show a very strong growth in Revenue. The Revenue will grow by 27.91% on average per year.
EPS Next Y52.6%
EPS Next 2Y-7.46%
EPS Next 3Y20.66%
EPS Next 5YN/A
Revenue Next Year50.96%
Revenue Next 2Y26.89%
Revenue Next 3Y27.91%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 16.44 indicates a correct valuation of CPH.
- 79.41% of the companies in the same industry are more expensive than CPH, based on the Price/Earnings ratio.
- CPH is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 27.46, which means the current valuation is very expensive for CPH.
- CPH's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CPH is cheaper than 64.71% of the companies in the same industry.
- CPH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.44 | ||
| Fwd PE | 27.46 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as CPH.
- 76.47% of the companies in the same industry are more expensive than CPH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.17 | ||
| EV/EBITDA | 14.18 |
4.3 Compensation for Growth
- 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 CPH may justify a higher PE ratio.
- A more expensive valuation may be justified as CPH's earnings are expected to grow with 20.66% in the coming years.
PEG (NY)0.31
PEG (5Y)1.27
EPS Next 2Y-7.46%
EPS Next 3Y20.66%
5. Dividend
5.1 Amount
- CPH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CIPHER PHARMACEUTICALS INC / CPH.CA FAQ
What is the ChartMill fundamental rating of CIPHER PHARMACEUTICALS INC (CPH.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to CPH.CA.
What is the valuation status for CPH stock?
ChartMill assigns a valuation rating of 6 / 10 to CIPHER PHARMACEUTICALS INC (CPH.CA). This can be considered as Fairly Valued.
What is the profitability of CPH stock?
CIPHER PHARMACEUTICALS INC (CPH.CA) has a profitability rating of 8 / 10.
What are the PE and PB ratios of CIPHER PHARMACEUTICALS INC (CPH.CA) stock?
The Price/Earnings (PE) ratio for CIPHER PHARMACEUTICALS INC (CPH.CA) is 16.44 and the Price/Book (PB) ratio is 2.41.
How financially healthy is CIPHER PHARMACEUTICALS INC?
The financial health rating of CIPHER PHARMACEUTICALS INC (CPH.CA) is 7 / 10.