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ETON PHARMACEUTICALS INC (ETON) Stock Fundamental Analysis

NASDAQ:ETON - Nasdaq - US29772L1089 - Common Stock - Currency: USD

14.34  +0.26 (+1.85%)

After market: 14.34 0 (0%)

Fundamental Rating

4

ETON gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 197 industry peers in the Pharmaceuticals industry. Both the profitability and financial health of ETON have multiple concerns. ETON shows excellent growth, but is valued quite expensive already.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

ETON had negative earnings in the past year.
In the past year ETON had a positive cash flow from operations.
In the past 5 years ETON always reported negative net income.
The reported operating cash flow has been mixed in the past 5 years: ETON reported negative operating cash flow in multiple years.
ETON Yearly Net Income VS EBIT VS OCF VS FCFETON Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 -10M -20M -30M

1.2 Ratios

The Return On Assets of ETON (-5.02%) is better than 73.60% of its industry peers.
ETON's Return On Equity of -15.65% is fine compared to the rest of the industry. ETON outperforms 74.62% of its industry peers.
Industry RankSector Rank
ROA -5.02%
ROE -15.65%
ROIC N/A
ROA(3y)-14.67%
ROA(5y)-31.48%
ROE(3y)-30.22%
ROE(5y)-56.08%
ROIC(3y)N/A
ROIC(5y)N/A
ETON Yearly ROA, ROE, ROICETON Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 -50 -100 -150

1.3 Margins

The Gross Margin of ETON (60.01%) is better than 67.51% of its industry peers.
ETON's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for ETON so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 60.01%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.67%
GM growth 5Y2.47%
ETON Yearly Profit, Operating, Gross MarginsETON Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 0 -20K -40K -60K

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3

2. Health

2.1 Basic Checks

ETON does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ETON has been increased compared to 1 year ago.
ETON has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ETON is higher compared to a year ago.
ETON Yearly Shares OutstandingETON Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M 25M
ETON Yearly Total Debt VS Total AssetsETON Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M

2.2 Solvency

An Altman-Z score of 3.23 indicates that ETON is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.23, ETON is in the better half of the industry, outperforming 78.68% of the companies in the same industry.
ETON has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.22, ETON is not doing good in the industry: 73.10% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.22
Debt/FCF N/A
Altman-Z 3.23
ROIC/WACCN/A
WACC9.57%
ETON Yearly LT Debt VS Equity VS FCFETON Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 10M -10M 20M -20M

2.3 Liquidity

ETON has a Current Ratio of 2.06. This indicates that ETON is financially healthy and has no problem in meeting its short term obligations.
ETON has a Current ratio (2.06) which is in line with its industry peers.
A Quick Ratio of 1.29 indicates that ETON should not have too much problems paying its short term obligations.
ETON has a Quick ratio of 1.29. This is in the lower half of the industry: ETON underperforms 70.05% of its industry peers.
Industry RankSector Rank
Current Ratio 2.06
Quick Ratio 1.29
ETON Yearly Current Assets VS Current LiabilitesETON Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M

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7

3. Growth

3.1 Past

The earnings per share for ETON have decreased strongly by -133.33% in the last year.
Looking at the last year, ETON shows a very strong growth in Revenue. The Revenue has grown by 23.28%.
ETON shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 109.79% yearly.
EPS 1Y (TTM)-133.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%77.78%
Revenue 1Y (TTM)23.28%
Revenue growth 3Y21.35%
Revenue growth 5Y109.79%
Sales Q2Q%59.26%

3.2 Future

Based on estimates for the next years, ETON will show a very strong growth in Earnings Per Share. The EPS will grow by 85.99% on average per year.
The Revenue is expected to grow by 43.04% on average over the next years. This is a very strong growth
EPS Next Y391.43%
EPS Next 2Y229.61%
EPS Next 3Y141.14%
EPS Next 5Y85.99%
Revenue Next Year94.06%
Revenue Next 2Y72.1%
Revenue Next 3Y60.05%
Revenue Next 5Y43.04%

3.3 Evolution

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.
ETON Yearly Revenue VS EstimatesETON Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 100M 200M 300M 400M
ETON Yearly EPS VS EstimatesETON Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 0 2 4 6

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2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for ETON. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 35.15, ETON can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETON indicates a somewhat cheap valuation: ETON is cheaper than 78.17% of the companies listed in the same industry.
ETON's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.08.
Industry RankSector Rank
PE N/A
Fwd PE 35.15
ETON Price Earnings VS Forward Price EarningsETON Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 -40 -60 -80 -100

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
ETON Per share dataETON EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 1

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.
ETON's earnings are expected to grow with 141.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y229.61%
EPS Next 3Y141.14%

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0

5. Dividend

5.1 Amount

ETON does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ETON PHARMACEUTICALS INC

NASDAQ:ETON (4/17/2025, 8:15:50 PM)

After market: 14.34 0 (0%)

14.34

+0.26 (+1.85%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)03-18 2025-03-18/bmo
Earnings (Next)05-08 2025-05-08
Inst Owners49.94%
Inst Owner Change0%
Ins Owners5.61%
Ins Owner Change2.48%
Market Cap384.60M
Analysts82.22
Price Target28.22 (96.79%)
Short Float %1.15%
Short Ratio0.97
Dividend
Industry RankSector 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)1
Avg EPS beat(2)-47.35%
Min EPS beat(2)-488.82%
Max EPS beat(2)394.12%
EPS beat(4)2
Avg EPS beat(4)-32.03%
Min EPS beat(4)-488.82%
Max EPS beat(4)394.12%
EPS beat(8)5
Avg EPS beat(8)15.63%
EPS beat(12)7
Avg EPS beat(12)-1.22%
EPS beat(16)8
Avg EPS beat(16)-8.77%
Revenue beat(2)2
Avg Revenue beat(2)6.42%
Min Revenue beat(2)4.4%
Max Revenue beat(2)8.43%
Revenue beat(4)3
Avg Revenue beat(4)2.89%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)8.43%
Revenue beat(8)6
Avg Revenue beat(8)13.7%
Revenue beat(12)7
Avg Revenue beat(12)2.3%
Revenue beat(16)7
Avg Revenue beat(16)-7.74%
PT rev (1m)7.79%
PT rev (3m)84.44%
EPS NQ rev (1m)-25.01%
EPS NQ rev (3m)-55.56%
EPS NY rev (1m)-23.08%
EPS NY rev (3m)-4.76%
Revenue NQ rev (1m)6.18%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)-7.39%
Revenue NY rev (3m)6.88%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 35.15
P/S 9.86
P/FCF N/A
P/OCF 396.9
P/B 15.74
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-0.14
EYN/A
EPS(NY)0.41
Fwd EY2.85%
FCF(TTM)-0.34
FCFYN/A
OCF(TTM)0.04
OCFY0.25%
SpS1.45
BVpS0.91
TBVpS-0.39
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -5.02%
ROE -15.65%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 60.01%
FCFM N/A
ROA(3y)-14.67%
ROA(5y)-31.48%
ROE(3y)-30.22%
ROE(5y)-56.08%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.67%
GM growth 5Y2.47%
F-Score3
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 1.22
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 873.82%
Cap/Sales 25.67%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.06
Quick Ratio 1.29
Altman-Z 3.23
F-Score3
WACC9.57%
ROIC/WACCN/A
Cap/Depr(3y)372.49%
Cap/Depr(5y)366.77%
Cap/Sales(3y)13.75%
Cap/Sales(5y)36.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-133.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%77.78%
EPS Next Y391.43%
EPS Next 2Y229.61%
EPS Next 3Y141.14%
EPS Next 5Y85.99%
Revenue 1Y (TTM)23.28%
Revenue growth 3Y21.35%
Revenue growth 5Y109.79%
Sales Q2Q%59.26%
Revenue Next Year94.06%
Revenue Next 2Y72.1%
Revenue Next 3Y60.05%
Revenue Next 5Y43.04%
EBIT growth 1Y-82.9%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year697.9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-249.75%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-85.78%
OCF growth 3YN/A
OCF growth 5YN/A