CATALYST PHARMACEUTICALS INC (CPRX) Stock Fundamental Analysis
NASDAQ:CPRX - Nasdaq - US14888U1016 - Common Stock - Currency: USD
Overall CPRX gets a fundamental rating of 8 out of 10. We evaluated CPRX against 568 industry peers in the Biotechnology industry. CPRX gets an excellent profitability rating and is at the same time showing great financial health properties. CPRX is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, CPRX could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
CPRX had positive earnings in the past year.
In the past year CPRX had a positive cash flow from operations.
Each year in the past 5 years CPRX has been profitable.
In the past 5 years CPRX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CPRX (19.25%) is better than 98.24% of its industry peers.
The Return On Equity of CPRX (22.52%) is better than 97.36% of its industry peers.
The Return On Invested Capital of CPRX (20.21%) is better than 98.06% of its industry peers.
CPRX had an Average Return On Invested Capital over the past 3 years of 20.37%. This is significantly above the industry average of 14.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.25% | ||
| ROE | 22.52% | ||
| ROIC | 20.21% |
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
The Profit Margin of CPRX (33.33%) is better than 98.24% of its industry peers.
In the last couple of years the Profit Margin of CPRX has remained more or less at the same level.
With an excellent Operating Margin value of 39.68%, CPRX belongs to the best of the industry, outperforming 99.30% of the companies in the same industry.
CPRX's Operating Margin has improved in the last couple of years.
The Gross Margin of CPRX (86.00%) is better than 88.03% of its industry peers.
In the last couple of years the Gross Margin of CPRX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.68% | ||
| PM (TTM) | 33.33% | ||
| GM | 86% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CPRX is creating value.
The number of shares outstanding for CPRX has been increased compared to 1 year ago.
Compared to 5 years ago, CPRX has more shares outstanding
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 15.77. This indicates that CPRX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CPRX (15.77) is better than 93.49% of its industry peers.
CPRX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 15.77 |
ROIC/WACC1.96
WACC10.33%
2.3 Liquidity
A Current Ratio of 5.17 indicates that CPRX has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 5.17, CPRX is in line with its industry, outperforming 55.81% of the companies in the same industry.
CPRX has a Quick Ratio of 5.01. This indicates that CPRX is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of CPRX (5.01) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.17 | ||
| Quick Ratio | 5.01 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 61.73% over the past year.
CPRX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 34.29% yearly.
CPRX shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.47%.
Measured over the past years, CPRX shows a very strong growth in Revenue. The Revenue has been growing by 36.89% on average per year.
EPS 1Y (TTM)61.73%
EPS 3Y52.41%
EPS 5Y34.29%
EPS Q2Q%41.94%
Revenue 1Y (TTM)23.47%
Revenue growth 3Y51.72%
Revenue growth 5Y36.89%
Sales Q2Q%28.26%
3.2 Future
Based on estimates for the next years, CPRX will show a very strong growth in Earnings Per Share. The EPS will grow by 29.57% on average per year.
The Revenue is expected to grow by 11.94% on average over the next years. This is quite good.
EPS Next Y10.01%
EPS Next 2Y13.2%
EPS Next 3Y11.12%
EPS Next 5Y29.57%
Revenue Next Year14.69%
Revenue Next 2Y12.12%
Revenue Next 3Y12.35%
Revenue Next 5Y11.94%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.19 indicates a rather expensive valuation of CPRX.
Based on the Price/Earnings ratio, CPRX is valued cheaply inside the industry as 96.48% of the companies are valued more expensively.
CPRX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
CPRX is valuated correctly with a Price/Forward Earnings ratio of 15.63.
Based on the Price/Forward Earnings ratio, CPRX is valued cheaply inside the industry as 95.07% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CPRX to the average of the S&P500 Index (21.08), we can say CPRX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 15.63 |
4.2 Price Multiples
CPRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CPRX is cheaper than 97.36% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CPRX indicates a rather cheap valuation: CPRX is cheaper than 97.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.43 | ||
| EV/EBITDA | 9.52 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CPRX may justify a higher PE ratio.
PEG (NY)1.72
PEG (5Y)0.5
EPS Next 2Y13.2%
EPS Next 3Y11.12%
5. Dividend
5.1 Amount
No dividends for CPRX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.52
+0.33 (+1.49%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners83.75%
Inst Owner Change0%
Ins Owners5.74%
Ins Owner Change5.59%
Market Cap2.74B
Analysts88.57
Price Target34.55 (53.42%)
Short Float %5.49%
Short Ratio4.99
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)2
Avg EPS beat(2)20.14%
Min EPS beat(2)12.87%
Max EPS beat(2)27.41%
EPS beat(4)4
Avg EPS beat(4)18.76%
Min EPS beat(4)12.21%
Max EPS beat(4)27.41%
EPS beat(8)7
Avg EPS beat(8)14.39%
EPS beat(12)10
Avg EPS beat(12)10.16%
EPS beat(16)11
Avg EPS beat(16)5.05%
Revenue beat(2)2
Avg Revenue beat(2)2.92%
Min Revenue beat(2)2.23%
Max Revenue beat(2)3.61%
Revenue beat(4)3
Avg Revenue beat(4)2.95%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)7.55%
Revenue beat(8)7
Avg Revenue beat(8)2.93%
Revenue beat(12)10
Avg Revenue beat(12)2.94%
Revenue beat(16)12
Avg Revenue beat(16)2.57%
PT rev (1m)1.63%
PT rev (3m)5.04%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)15.91%
EPS NY rev (1m)-1.98%
EPS NY rev (3m)-11.05%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.19 | ||
| Fwd PE | 15.63 | ||
| P/S | 5.56 | ||
| P/FCF | 11.43 | ||
| P/OCF | 11.41 | ||
| P/B | 3.76 | ||
| P/tB | 4.79 | ||
| EV/EBITDA | 9.52 |
EPS(TTM)1.31
EY5.82%
EPS(NY)1.44
Fwd EY6.4%
FCF(TTM)1.97
FCFY8.75%
OCF(TTM)1.97
OCFY8.77%
SpS4.05
BVpS5.99
TBVpS4.7
PEG (NY)1.72
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.25% | ||
| ROE | 22.52% | ||
| ROCE | 26.7% | ||
| ROIC | 20.21% | ||
| ROICexc | 69.26% | ||
| ROICexgc | 261.29% | ||
| OM | 39.68% | ||
| PM (TTM) | 33.33% | ||
| GM | 86% | ||
| FCFM | 48.65% |
ROA(3y)18.85%
ROA(5y)22.43%
ROE(3y)22.87%
ROE(5y)26.38%
ROIC(3y)20.37%
ROIC(5y)19.67%
ROICexc(3y)162.63%
ROICexc(5y)159.51%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)26.92%
ROCE(5y)25.99%
ROICexcg growth 3Y8.72%
ROICexcg growth 5YN/A
ROICexc growth 3Y-30.16%
ROICexc growth 5YN/A
OM growth 3Y2.16%
OM growth 5Y5%
PM growth 3Y5.91%
PM growth 5Y1.34%
GM growth 3Y0.61%
GM growth 5Y0.11%
F-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 1.47% | ||
| Cap/Sales | 0.11% | ||
| Interest Coverage | 139.87 | ||
| Cash Conversion | 102.97% | ||
| Profit Quality | 145.98% | ||
| Current Ratio | 5.17 | ||
| Quick Ratio | 5.01 | ||
| Altman-Z | 15.77 |
F-Score6
WACC10.33%
ROIC/WACC1.96
Cap/Depr(3y)0.72%
Cap/Depr(5y)100.44%
Cap/Sales(3y)0.06%
Cap/Sales(5y)0.18%
Profit Quality(3y)162.12%
Profit Quality(5y)139.35%
High Growth Momentum
Growth
EPS 1Y (TTM)61.73%
EPS 3Y52.41%
EPS 5Y34.29%
EPS Q2Q%41.94%
EPS Next Y10.01%
EPS Next 2Y13.2%
EPS Next 3Y11.12%
EPS Next 5Y29.57%
Revenue 1Y (TTM)23.47%
Revenue growth 3Y51.72%
Revenue growth 5Y36.89%
Sales Q2Q%28.26%
Revenue Next Year14.69%
Revenue Next 2Y12.12%
Revenue Next 3Y12.35%
Revenue Next 5Y11.94%
EBIT growth 1Y124.82%
EBIT growth 3Y55%
EBIT growth 5Y43.74%
EBIT Next Year-11.44%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y66.88%
FCF growth 3Y59.11%
FCF growth 5Y47.22%
OCF growth 1Y67%
OCF growth 3Y58.35%
OCF growth 5Y47.28%