For those who appreciate value investing, CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) is a compelling option with its solid fundamentals.

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

A Closer Look at Valuation for 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. CPRX scores a 7 out of 10:

• CPRX's Price/Earnings ratio is rather cheap when compared to the industry. CPRX is cheaper than 96.67% of the companies in the same industry.
• Compared to an average S&P500 Price/Earnings ratio of 28.78, CPRX is valued a bit cheaper.
• Based on the Price/Forward Earnings ratio, CPRX is valued cheaper than 95.44% of the companies in the same industry.
• When comparing the Price/Forward Earnings ratio of CPRX to the average of the S&P500 Index (21.81), we can say CPRX is valued slightly cheaper.
• 97.72% of the companies in the same industry are more expensive than CPRX, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, CPRX is valued cheaply inside the industry as 97.54% of the companies are valued more expensively.
• The excellent profitability rating of CPRX may justify a higher PE ratio.
• CPRX's earnings are expected to grow with 30.97% in the coming years. This may justify a more expensive valuation.

Exploring CPRX's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. CPRX scores a 9 out of 10:

• With an excellent Return On Assets value of 19.25%, CPRX belongs to the best of the industry, outperforming 98.60% of the companies in the same industry.
• CPRX's Return On Equity of 22.52% is amongst the best of the industry. CPRX outperforms 97.37% of its industry peers.
• With an excellent Return On Invested Capital value of 20.21%, CPRX belongs to the best of the industry, outperforming 98.07% 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 14.72%.
• The Profit Margin of CPRX (33.33%) is better than 98.25% of its industry peers.
• CPRX has a Operating Margin of 39.68%. This is amongst the best in the industry. CPRX outperforms 99.30% of its industry peers.
• In the last couple of years the Operating Margin of CPRX has grown nicely.
• CPRX has a better Gross Margin (86.00%) than 89.12% of its industry peers.

Deciphering CPRX's Health Rating

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. CPRX scores a 8 out of 10:

• An Altman-Z score of 16.15 indicates that CPRX is not in any danger for bankruptcy at the moment.
• The Altman-Z score of CPRX (16.15) is better than 92.28% 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 5.17 indicates that CPRX has no problem at all paying its short term obligations.
• 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.

Evaluating Growth: CPRX

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of CPRX, the assigned 9 reflects its growth potential:

• CPRX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.73%, which is quite impressive.
• Measured over the past years, CPRX shows a very strong growth in Earnings Per Share. The EPS has been growing by 34.29% on average per year.
• Looking at the last year, CPRX shows a very strong growth in Revenue. 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.
• Based on estimates for the next years, CPRX will show a very strong growth in Earnings Per Share. The EPS will grow by 23.16% on average per year.
• The Revenue is expected to grow by 10.97% on average over the next years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.