23.58 USD
-0.87 (-3.56%)
23.58 USD
0 (0%)
We assign a fundamental rating of 8 out of 10 to CPRX. CPRX was compared to 525 industry peers in the Biotechnology industry. Both the health and profitability get an excellent rating, making CPRX a very profitable company, without any liquidiy or solvency issues. CPRX is evaluated to be cheap and growing strongly. This does not happen too often! This makes CPRX very considerable for value and growth and quality investing!
1. Profitability
1.1 Basic Checks
- CPRX had positive earnings in the past year.
- CPRX had a positive operating cash flow in the past year.
- CPRX had positive earnings in each of the past 5 years.
- In the past 5 years CPRX always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of CPRX (20.69%) is better than 97.14% of its industry peers.
- The Return On Equity of CPRX (23.65%) is better than 96.76% of its industry peers.
- The Return On Invested Capital of CPRX (21.23%) is better than 97.90% of its industry peers.
- CPRX had an Average Return On Invested Capital over the past 3 years of 20.37%. This is above the industry average of 18.07%.
- The last Return On Invested Capital (21.23%) for CPRX is above the 3 year average (20.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.69% | ||
| ROE | 23.65% | ||
| ROIC | 21.23% |
ROA(3y)18.85%
ROA(5y)22.43%
ROE(3y)22.87%
ROE(5y)26.38%
ROIC(3y)20.37%
ROIC(5y)19.67%
1.3 Margins
- Looking at the Profit Margin, with a value of 37.64%, CPRX belongs to the top of the industry, outperforming 96.76% of the companies in the same industry.
- CPRX's Profit Margin has been stable in the last couple of years.
- The Operating Margin of CPRX (44.78%) is better than 99.43% of its industry peers.
- CPRX's Operating Margin has improved in the last couple of years.
- CPRX has a better Gross Margin (85.68%) than 88.38% of its industry peers.
- CPRX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.78% | ||
| PM (TTM) | 37.64% | ||
| GM | 85.68% |
OM growth 3Y2.16%
OM growth 5Y5%
PM growth 3Y5.91%
PM growth 5Y1.34%
GM growth 3Y0.61%
GM growth 5Y0.11%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CPRX is creating value.
- The number of shares outstanding for CPRX has been increased compared to 1 year ago.
- CPRX has more shares outstanding than it did 5 years ago.
- CPRX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- CPRX has an Altman-Z score of 16.51. This indicates that CPRX is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 16.51, CPRX belongs to the top of the industry, outperforming 86.29% 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 16.51 |
ROIC/WACC2.39
WACC8.9%
2.3 Liquidity
- CPRX has a Current Ratio of 6.62. This indicates that CPRX is financially healthy and has no problem in meeting its short term obligations.
- CPRX's Current ratio of 6.62 is fine compared to the rest of the industry. CPRX outperforms 67.62% of its industry peers.
- A Quick Ratio of 6.40 indicates that CPRX has no problem at all paying its short term obligations.
- CPRX's Quick ratio of 6.40 is fine compared to the rest of the industry. CPRX outperforms 66.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.62 | ||
| Quick Ratio | 6.4 |
3. Growth
3.1 Past
- CPRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.76%, which is quite impressive.
- The Earnings Per Share has been growing by 34.29% on average over the past years. This is a very strong growth
- The Revenue has grown by 25.56% in the past year. This is a very strong growth!
- The Revenue has been growing by 36.89% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)45.76%
EPS 3Y52.41%
EPS 5Y34.29%
EPS Q2Q%20%
Revenue 1Y (TTM)25.56%
Revenue growth 3Y51.72%
Revenue growth 5Y36.89%
Sales Q2Q%15.31%
3.2 Future
- CPRX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.80% yearly.
- Based on estimates for the next years, CPRX will show a quite strong growth in Revenue. The Revenue will grow by 11.21% on average per year.
EPS Next Y24.97%
EPS Next 2Y18.55%
EPS Next 3Y12.53%
EPS Next 5Y26.8%
Revenue Next Year19.37%
Revenue Next 2Y13.05%
Revenue Next 3Y11.23%
Revenue Next 5Y11.21%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 13.71, CPRX is valued correctly.
- CPRX's Price/Earnings ratio is rather cheap when compared to the industry. CPRX is cheaper than 96.76% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. CPRX is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 12.81, the valuation of CPRX can be described as correct.
- 96.76% of the companies in the same industry are more expensive than CPRX, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, CPRX is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.71 | ||
| Fwd PE | 12.81 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CPRX is valued cheaply inside the industry as 98.10% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, CPRX is valued cheaper than 97.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.35 | ||
| EV/EBITDA | 7.8 |
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 CPRX may justify a higher PE ratio.
- A more expensive valuation may be justified as CPRX's earnings are expected to grow with 12.53% in the coming years.
PEG (NY)0.55
PEG (5Y)0.4
EPS Next 2Y18.55%
EPS Next 3Y12.53%
5. Dividend
5.1 Amount
- No dividends for CPRX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CATALYST PHARMACEUTICALS INC / CPRX FAQ
What is the ChartMill fundamental rating of CATALYST PHARMACEUTICALS INC (CPRX) stock?
ChartMill assigns a fundamental rating of 8 / 10 to CPRX.
What is the valuation status for CPRX stock?
ChartMill assigns a valuation rating of 8 / 10 to CATALYST PHARMACEUTICALS INC (CPRX). This can be considered as Undervalued.
Can you provide the profitability details for CATALYST PHARMACEUTICALS INC?
CATALYST PHARMACEUTICALS INC (CPRX) has a profitability rating of 9 / 10.
What is the expected EPS growth for CATALYST PHARMACEUTICALS INC (CPRX) stock?
The Earnings per Share (EPS) of CATALYST PHARMACEUTICALS INC (CPRX) is expected to grow by 24.97% in the next year.