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
We assign a fundamental rating of 7 out of 10 to CPH. 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
- CPH had positive earnings in the past year.
- CPH had a positive operating cash flow in the past year.
- Each year in the past 5 years CPH has been profitable.
- In the past 5 years CPH always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 11.77%, CPH belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
- CPH's Return On Equity of 15.23% is amongst the best of the industry. CPH outperforms 88.24% of its industry peers.
- The Return On Invested Capital of CPH (7.23%) is better than 88.24% of its industry peers.
- 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
- CPH has a Profit Margin of 34.68%. This is amongst the best in the industry. CPH outperforms 100.00% of its industry peers.
- In the last couple of years the Profit Margin of CPH has grown nicely.
- CPH has a better Operating Margin (25.51%) than 85.29% of its industry peers.
- In the last couple of years the Operating Margin of CPH has declined.
- The Gross Margin of CPH (74.32%) is better than 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
- CPH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
- CPH has a worse debt/assets ratio than last year.
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.
- CPH has a Debt to FCF ratio of 0.45. This is amongst the best in the industry. CPH outperforms 94.12% of its industry peers.
- A Debt/Equity ratio of 0.12 indicates that CPH is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.12, CPH is doing good in the industry, outperforming 67.65% of the companies in the same industry.
| 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.
- With a Current ratio value of 1.30, CPH is not doing good in the industry: 64.71% of the companies in the same industry are doing better.
- CPH has a Quick Ratio of 1.30. This is a bad value and indicates that CPH is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.98, CPH is in line with its industry, outperforming 41.18% of the companies in the same industry.
- CPH does not score too well on the current and quick ratio evaluation. However, as it has 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%.
- The Earnings Per Share has been growing by 12.97% on average over the past years. This is quite good.
- 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.
- The Revenue is expected to grow by 27.91% on average over the next years. This is a very strong growth
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- Based on the Price/Earnings ratio of 16.44, the valuation of CPH can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of CPH indicates a somewhat cheap valuation: CPH is cheaper than 79.41% of the companies listed in the same industry.
- 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.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CPH indicates a somewhat cheap valuation: CPH is cheaper than 64.71% of the companies listed 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
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPH is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, CPH is valued a bit cheaper than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.17 | ||
| EV/EBITDA | 14.18 |
4.3 Compensation for Growth
- CPH's 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.
- CPH's earnings are expected to grow with 20.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)1.27
EPS Next 2Y-7.46%
EPS Next 3Y20.66%
5. Dividend
5.1 Amount
- No dividends for CPH!.
| 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.