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.
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.