CIPHER PHARMACEUTICALS INC (CPH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CPH - CA17253X1050 - Common Stock
14.75 CAD
-0.05 (-0.34%)
Overall CPH gets a fundamental rating of 7 out of 10. We evaluated CPH against 34 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 not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, CPH could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
- CPH had positive earnings in the past year.
- In the past year CPH had a positive cash flow from operations.
- 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.
- Looking at the Return On Equity, with a value of 15.23%, CPH belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
- CPH has a better Return On Invested Capital (7.23%) than 88.24% of its industry peers.
- CPH had an Average Return On Invested Capital over the past 3 years of 8.42%. This is in line with the industry average of 8.41%.
| 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
- The Profit Margin of CPH (34.68%) is better than 100.00% of its industry peers.
- 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 has a better Gross Margin (74.32%) than 94.12% of its industry peers.
- In the last couple of years the Gross Margin of CPH has declined.
| 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
- Compared to 1 year ago, CPH has a worse debt to assets ratio.
2.2 Solvency
- CPH has an Altman-Z score of 6.40. This indicates that CPH is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.40, CPH belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
- 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.
- CPH has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
- 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 | 6.4 |
ROIC/WACC0.85
WACC8.49%
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.
- 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.
- 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.
- 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%.
- 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.
- Looking at the last year, CPH shows a very strong growth in Revenue. The Revenue has grown by 89.17%.
- CPH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.25% yearly.
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
- Based on estimates for the next years, CPH will show a very strong growth in Earnings Per Share. The EPS will grow by 20.66% on average per year.
- 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.
- 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
- The Price/Earnings ratio is 16.39, which indicates a correct valuation of CPH.
- Based on the Price/Earnings ratio, CPH is valued a bit cheaper than the industry average as 79.41% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 28.82. CPH is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 27.38 indicates a quite expensive valuation of 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's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.39 | ||
| Fwd PE | 27.38 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as CPH.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CPH indicates a somewhat cheap valuation: CPH is cheaper than 76.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.15 | ||
| EV/EBITDA | 14.14 |
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.
- CPH has an outstanding profitability rating, which 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)1.26
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 16.39 and the Price/Book (PB) ratio is 2.4.
How financially healthy is CIPHER PHARMACEUTICALS INC?
The financial health rating of CIPHER PHARMACEUTICALS INC (CPH.CA) is 7 / 10.