CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) – A Rare Combination of Growth and Value

CATALYST PHARMACEUTICALS INC (NASDAQ:CPRX) stands out as an affordable growth stock based on our screening criteria. The company demonstrates strong growth potential, solid profitability, and a healthy financial position—all while trading at a reasonable valuation.

Growth Prospects

• Past Performance: CPRX has delivered impressive growth, with earnings per share (EPS) increasing by 112.16% over the past year and revenue growing by 29.96%.
• Future Expectations: Analysts project EPS growth of 29.57% annually, with revenue expected to rise by 11.94% in the coming years.
• Consistency: The company has maintained an average EPS growth rate of 34.29% over recent years, indicating sustainable expansion.

Attractive Valuation

• P/E Ratio: At 16.48, CPRX trades below both the industry average (61.45) and the S&P 500 (26.52).
• Forward P/E: The forward P/E of 14.99 suggests further upside potential.
• Enterprise Value/EBITDA: The ratio is lower than 96.95% of industry peers, reinforcing its undervaluation.

Strong Profitability and Financial Health

• High Margins: CPRX boasts a profit margin of 36.91% and an operating margin of 43.27%, outperforming most competitors.
• Zero Debt: The company has no outstanding debt, reducing financial risk.
• Liquidity: A current ratio of 6.14 and quick ratio of 5.96 indicate ample short-term financial flexibility.

For a deeper look at the company’s fundamentals, review the full analysis of CPRX.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.