Stock Analysis: Affordable Growth

Fundamental Rating

We assign a fundamental rating of 8 out of 10 to CPRX. CPRX was compared to 567 industry peers in the Biotechnology industry. CPRX has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CPRX is growing strongly while it is still valued neutral. This is a good combination! This makes CPRX very considerable for growth and quality investing!

1. Profitability

1.1 Basic Checks

In the past year CPRX was profitable.

CPRX had a positive operating cash flow in the past year.

CPRX had positive earnings in each of the past 5 years.

CPRX had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

CPRX has a Return On Assets of 19.25%. This is amongst the best in the industry. CPRX outperforms 98.23% of its industry peers.

The Return On Equity of CPRX (22.52%) is better than 97.35% of its industry peers.

CPRX has a better Return On Invested Capital (20.21%) than 98.06% of its industry peers.

CPRX had an Average Return On Invested Capital over the past 3 years of 20.37%. This is significantly above the industry average of 14.24%.

		Industry Rank	Sector Rank
ROA	19.25%
ROE	22.52%
ROIC	20.21%

ROA(3y)18.85%

ROA(5y)22.43%

ROE(3y)22.87%

ROE(5y)26.38%

ROIC(3y)20.37%

ROIC(5y)19.67%

1.3 Margins

CPRX's Profit Margin of 33.33% is amongst the best of the industry. CPRX outperforms 98.23% of its industry peers.

In the last couple of years the Profit Margin of CPRX has remained more or less at the same level.

With an excellent Operating Margin value of 39.68%, CPRX belongs to the best of the industry, outperforming 99.29% of the companies in the same industry.

CPRX's Operating Margin has improved in the last couple of years.

CPRX has a Gross Margin of 86.00%. This is amongst the best in the industry. CPRX outperforms 87.99% of its industry peers.

In the last couple of years the Gross Margin of CPRX has remained more or less at the same level.

		Industry Rank	Sector Rank
OM	39.68%
PM (TTM)	33.33%
GM	86%

OM growth 3Y2.16%

OM growth 5Y5%

PM growth 3Y5.91%

PM growth 5Y1.34%

GM growth 3Y0.61%

GM growth 5Y0.11%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CPRX is creating value.

The number of shares outstanding for CPRX has been increased compared to 1 year ago.

CPRX has more shares outstanding than it did 5 years ago.

CPRX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

An Altman-Z score of 16.86 indicates that CPRX is not in any danger for bankruptcy at the moment.

CPRX has a better Altman-Z score (16.86) than 93.64% 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.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	16.86

ROIC/WACC2.01

WACC10.04%

2.3 Liquidity

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.

CPRX has a Current ratio of 5.17. This is comparable to the rest of the industry: CPRX outperforms 56.36% of its industry peers.

A Quick Ratio of 5.01 indicates that CPRX has no problem at all paying its short term obligations.

CPRX has a Quick ratio (5.01) which is in line with its industry peers.

		Industry Rank	Sector Rank
Current Ratio	5.17
Quick Ratio	5.01

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

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.

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%.

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.

EPS 1Y (TTM)61.73%

EPS 3Y52.41%

EPS 5Y34.29%

EPS Q2Q%41.94%

Revenue 1Y (TTM)23.47%

Revenue growth 3Y51.72%

Revenue growth 5Y36.89%

Sales Q2Q%28.26%

3.2 Future

The Earnings Per Share is expected to grow by 29.57% on average over the next years. This is a very strong growth

CPRX is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.94% yearly.

EPS Next Y10.95%

EPS Next 2Y14.26%

EPS Next 3Y13.19%

EPS Next 5Y29.57%

Revenue Next Year15.11%

Revenue Next 2Y11.96%

Revenue Next 3Y12.05%

Revenue Next 5Y11.94%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 18.96, which indicates a rather expensive current valuation of CPRX.

Compared to the rest of the industry, the Price/Earnings ratio of CPRX indicates a rather cheap valuation: CPRX is cheaper than 96.47% 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 28.22.

The Price/Forward Earnings ratio is 17.09, which indicates a rather expensive current valuation of CPRX.

Compared to the rest of the industry, the Price/Forward Earnings ratio of CPRX indicates a rather cheap valuation: CPRX is cheaper than 94.70% of the companies listed in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 20.86. CPRX is around the same levels.

		Industry Rank	Sector Rank
PE	18.96
Fwd PE	17.09

4.2 Price Multiples

CPRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CPRX is cheaper than 97.35% of the companies in the same industry.

Compared to the rest of the industry, the Price/Free Cash Flow ratio of CPRX indicates a rather cheap valuation: CPRX is cheaper than 97.35% of the companies listed in the same industry.