Investors should take note of CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX), a growth stock that remains attractively priced.

Discover CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX), an undervalued growth gem identified by our stock screener. CPRX is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Deciphering CPRX's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. CPRX has earned a 9 for growth:

• The Earnings Per Share has grown by an impressive 61.73% over the past year.
• The Earnings Per Share has been growing by 34.29% on average over the past years. This is a very strong growth
• 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!
• CPRX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.57% yearly.
• Based on estimates for the next years, CPRX will show a quite strong growth in Revenue. The Revenue will grow by 11.94% on average per year.

Evaluating Valuation: 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:

• Compared to the rest of the industry, the Price/Earnings ratio of CPRX indicates a rather cheap valuation: CPRX is cheaper than 96.48% 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 28.64.
• Based on the Price/Forward Earnings ratio, CPRX is valued cheaply inside the industry as 95.25% of the companies are valued more expensively.
• CPRX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.44, which is the current average of the S&P500 Index.
• 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.
• CPRX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CPRX is cheaper than 97.36% of the companies 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 13.19% in the coming years.

Deciphering CPRX's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. CPRX has received a 8 out of 10:

• CPRX has an Altman-Z score of 16.18. This indicates that CPRX is financially healthy and has little risk of bankruptcy at the moment.
• CPRX's Altman-Z score of 16.18 is amongst the best of the industry. CPRX outperforms 93.13% 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.
• CPRX has a Current Ratio of 5.17. This indicates that CPRX is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 5.01 indicates that CPRX has no problem at all paying its short term obligations.

Profitability Examination for CPRX

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, CPRX has achieved a 9:

• The Return On Assets of CPRX (19.25%) is better than 98.24% of its industry peers.
• With an excellent Return On Equity value of 22.52%, CPRX belongs to the best of the industry, outperforming 97.36% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 20.21%, CPRX belongs to the best of the industry, outperforming 98.06% of the companies in the same industry.
• 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%.
• CPRX's Profit Margin of 33.33% is amongst the best of the industry. CPRX outperforms 98.24% of its industry peers.
• CPRX's Operating Margin of 39.68% is amongst the best of the industry. CPRX outperforms 99.30% of its industry peers.
• In the last couple of years the Operating Margin of CPRX has grown nicely.
• The Gross Margin of CPRX (86.00%) is better than 88.03% of its industry peers.

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Our latest full fundamental report of CPRX contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.