CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Take a closer look at CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX), a remarkable value stock uncovered by our stock screener. NASDAQ:CPRX excels in fundamentals and maintains a very reasonable valuation. Let's break it down further.

Valuation Analysis for NASDAQ:CPRX

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:CPRX scores a 7 out of 10:

• Based on the Price/Earnings ratio, CPRX is valued cheaper than 97.15% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 29.36, CPRX is valued rather cheaply.
• Based on the Price/Forward Earnings ratio, CPRX is valued cheaper than 96.08% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of CPRX to the average of the S&P500 Index (22.65), we can say CPRX is valued slightly cheaper.
• CPRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CPRX is cheaper than 98.04% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, CPRX is valued cheaply inside the industry as 98.04% of the companies are valued more expensively.
• CPRX has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as CPRX's earnings are expected to grow with 23.30% in the coming years.

Profitability Insights: NASDAQ:CPRX

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:CPRX has earned a 7 out of 10:

• CPRX has a Return On Assets of 18.50%. This is amongst the best in the industry. CPRX outperforms 98.57% of its industry peers.
• Looking at the Return On Equity, with a value of 21.61%, CPRX belongs to the top of the industry, outperforming 97.33% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 20.22%, CPRX belongs to the best of the industry, outperforming 98.04% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for CPRX is significantly above the industry average of 14.26%.
• The Profit Margin of CPRX (31.01%) is better than 98.22% of its industry peers.
• CPRX's Operating Margin of 37.78% is amongst the best of the industry. CPRX outperforms 99.11% of its industry peers.
• The Gross Margin of CPRX (86.32%) is better than 89.66% of its industry peers.

Unpacking NASDAQ:CPRX's Health Rating

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:CPRX has earned a 8 out of 10:

• An Altman-Z score of 15.69 indicates that CPRX is not in any danger for bankruptcy at the moment.
• The Altman-Z score of CPRX (15.69) is better than 91.27% of its industry peers.
• 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.
• A Current Ratio of 5.11 indicates that CPRX has no problem at all paying its short term obligations.
• CPRX has a Quick Ratio of 4.92. This indicates that CPRX is financially healthy and has no problem in meeting its short term obligations.

Growth Assessment of NASDAQ:CPRX

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:CPRX was assigned a score of 4 for growth:

• The Earnings Per Share has grown by an impressive 93.83% over the past year.
• Measured over the past years, CPRX shows a very strong growth in Earnings Per Share. The EPS has been growing by 39.24% on average per year.
• Based on estimates for the next years, CPRX will show a quite strong growth in Revenue. The Revenue will grow by 11.98% on average per year.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of CPRX

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.