CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) is showing decent growth, but is still valued reasonably.

Our stock screening tool has pinpointed CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) as a growth stock that isn't overvalued. CPRX is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

A Closer Look at Growth for CPRX

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. CPRX has received a 9 out of 10:

• 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.
• Looking at the last year, CPRX shows a very strong growth in Revenue. The Revenue has grown by 23.47%.
• The Revenue has been growing by 36.89% on average over the past years. This is a very strong growth!
• 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.
• Based on estimates for the next years, CPRX will show a quite strong growth in Revenue. The Revenue will grow by 10.97% on average per year.

Understanding CPRX's Valuation Score

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. CPRX was assigned a score of 7 for valuation:

• Compared to the rest of the industry, the Price/Earnings ratio of CPRX indicates a rather cheap valuation: CPRX is cheaper than 97.01% of the companies listed in the same industry.
• CPRX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.81.
• CPRX's Price/Forward Earnings ratio is rather cheap when compared to the industry. CPRX is cheaper than 94.90% of the companies in the same industry.
• Compared to an average S&P500 Price/Forward Earnings ratio of 21.91, CPRX is valued a bit cheaper.
• Based on the Enterprise Value to EBITDA ratio, CPRX is valued cheaply inside the industry as 97.36% of the companies are valued more expensively.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of CPRX indicates a rather cheap valuation: CPRX is cheaper than 97.54% of the companies listed in the same industry.
• 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 30.97% in the coming years.

What does the Health looks like for CPRX

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:

• CPRX has an Altman-Z score of 17.14. This indicates that CPRX is financially healthy and has little risk of bankruptcy at the moment.
• CPRX has a Altman-Z score of 17.14. This is amongst the best in the industry. CPRX outperforms 92.97% 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.
• A Quick Ratio of 5.01 indicates that CPRX has no problem at all paying its short term obligations.

Profitability Assessment of CPRX

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:

• Looking at the Return On Assets, with a value of 19.25%, CPRX belongs to the top of the industry, outperforming 98.77% of the companies in the same industry.
• With an excellent Return On Equity value of 22.52%, CPRX belongs to the best of the industry, outperforming 97.54% of the companies in the same industry.
• CPRX's Return On Invested Capital of 20.21% is amongst the best of the industry. CPRX outperforms 98.07% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for CPRX is significantly above the industry average of 14.54%.
• CPRX has a better Profit Margin (33.33%) than 98.42% of its industry peers.
• Looking at the Operating Margin, with a value of 39.68%, CPRX belongs to the top 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.
• Looking at the Gross Margin, with a value of 86.00%, CPRX belongs to the top of the industry, outperforming 88.22% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of CPRX for a complete fundamental analysis.

Disclaimer

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.