CIPHER PHARMACEUTICALS INC (CPH.CA) Stock Fundamental Analysis
TSX:CPH - Toronto Stock Exchange - CA17253X1050 - Common Stock - Currency: CAD
Overall CPH gets a fundamental rating of 6 out of 10. We evaluated CPH against 34 industry peers in the Pharmaceuticals industry. While CPH belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CPH is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, CPH could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
CPH had positive earnings in the past year.
CPH had a positive operating cash flow in the past year.
In the past 5 years CPH has always been profitable.
In the past 5 years CPH always reported a positive cash flow from operatings.
1.2 Ratios
CPH has a better Return On Assets (5.67%) than 91.18% of its industry peers.
With an excellent Return On Equity value of 8.79%, CPH belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
The Return On Invested Capital of CPH (3.60%) is better than 73.53% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CPH is in line with the industry average of 7.86%.
The last Return On Invested Capital (3.60%) for CPH is well below the 3 year average (8.42%), which needs to be investigated, but indicates that CPH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.67% | ||
| ROE | 8.79% | ||
| ROIC | 3.6% |
ROA(3y)22.3%
ROA(5y)18.43%
ROE(3y)26.05%
ROE(5y)22.41%
ROIC(3y)8.42%
ROIC(5y)14.92%
1.3 Margins
CPH has a better Profit Margin (23.40%) than 97.06% of its industry peers.
In the last couple of years the Profit Margin of CPH has grown nicely.
Looking at the Operating Margin, with a value of 18.39%, CPH belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
In the last couple of years the Operating Margin of CPH has declined.
CPH has a Gross Margin of 71.95%. This is amongst the best in the industry. CPH outperforms 94.12% of its industry peers.
In the last couple of years the Gross Margin of CPH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.39% | ||
| PM (TTM) | 23.4% | ||
| GM | 71.95% |
OM growth 3Y-26.62%
OM growth 5Y-14.41%
PM growth 3Y-0.73%
PM growth 5Y19.11%
GM growth 3Y-4.61%
GM growth 5Y-3.67%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CPH is destroying value.
The number of shares outstanding for CPH has been increased compared to 1 year ago.
CPH has less shares outstanding than it did 5 years ago.
CPH has a worse debt/assets ratio than last year.
2.2 Solvency
CPH has an Altman-Z score of 3.84. This indicates that CPH is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.84, CPH belongs to the best of the industry, outperforming 94.12% of the companies in the same industry.
CPH has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.38, CPH is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.84 |
ROIC/WACC0.42
WACC8.53%
2.3 Liquidity
A Current Ratio of 2.28 indicates that CPH has no problem at all paying its short term obligations.
The Current ratio of CPH (2.28) is comparable to the rest of the industry.
A Quick Ratio of 1.97 indicates that CPH should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.97, CPH is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
CPH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -59.55%.
The Earnings Per Share has been growing by 12.47% on average over the past years. This is quite good.
Looking at the last year, CPH shows a very strong growth in Revenue. The Revenue has grown by 78.42%.
The Revenue has been growing by 8.25% on average over the past years. This is quite good.
EPS 1Y (TTM)-59.55%
EPS 3Y13.23%
EPS 5Y12.47%
EPS Q2Q%-50%
Revenue 1Y (TTM)78.42%
Revenue growth 3Y14.99%
Revenue growth 5Y8.25%
Sales Q2Q%104.86%
3.2 Future
The Earnings Per Share is expected to grow by 16.25% on average over the next years. This is quite good.
CPH is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.22% yearly.
EPS Next Y40.28%
EPS Next 2Y27.42%
EPS Next 3Y16.25%
EPS Next 5YN/A
Revenue Next Year56.92%
Revenue Next 2Y30.52%
Revenue Next 3Y21.22%
Revenue Next 5YN/A
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 27.04, the valuation of CPH can be described as expensive.
79.41% of the companies in the same industry are more expensive than CPH, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.57, CPH is valued at the same level.
With a Price/Forward Earnings ratio of 13.37, CPH is valued correctly.
Based on the Price/Forward Earnings ratio, CPH is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
CPH's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.04 | ||
| Fwd PE | 13.37 |
4.2 Price Multiples
CPH's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.97 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of CPH may justify a higher PE ratio.
CPH's earnings are expected to grow with 16.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)2.17
EPS Next 2Y27.42%
EPS Next 3Y16.25%
5. Dividend
5.1 Amount
No dividends for CPH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CPH (6/16/2025, 7:00:00 PM)
13.25
+0.16 (+1.22%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners1.35%
Inst Owner ChangeN/A
Ins Owners4.67%
Ins Owner ChangeN/A
Market Cap339.46M
Analysts77.78
Price Target16.34 (23.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.2%
Min EPS beat(2)-37.21%
Max EPS beat(2)-7.18%
EPS beat(4)1
Avg EPS beat(4)-34.34%
Min EPS beat(4)-94.79%
Max EPS beat(4)1.84%
EPS beat(8)5
Avg EPS beat(8)60.91%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-0.6%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)-0.52%
Revenue beat(4)1
Avg Revenue beat(4)0.73%
Min Revenue beat(4)-2.71%
Max Revenue beat(4)6.82%
Revenue beat(8)3
Avg Revenue beat(8)7.2%
Revenue beat(12)3
Avg Revenue beat(12)0.33%
Revenue beat(16)4
Avg Revenue beat(16)-1.04%
PT rev (1m)-4.19%
PT rev (3m)-14.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-23.47%
Revenue NQ rev (1m)1.52%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.04 | ||
| Fwd PE | 13.37 | ||
| P/S | 6.33 | ||
| P/FCF | N/A | ||
| P/OCF | 11.73 | ||
| P/B | 2.38 | ||
| P/tB | 23.21 | ||
| EV/EBITDA | 20.97 |
EPS(TTM)0.49
EY3.7%
EPS(NY)0.99
Fwd EY7.48%
FCF(TTM)-3.11
FCFYN/A
OCF(TTM)1.13
OCFY8.52%
SpS2.09
BVpS5.57
TBVpS0.57
PEG (NY)0.67
PEG (5Y)2.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.67% | ||
| ROE | 8.79% | ||
| ROCE | 4.99% | ||
| ROIC | 3.6% | ||
| ROICexc | 4.24% | ||
| ROICexgc | 18.03% | ||
| OM | 18.39% | ||
| PM (TTM) | 23.4% | ||
| GM | 71.95% | ||
| FCFM | N/A |
ROA(3y)22.3%
ROA(5y)18.43%
ROE(3y)26.05%
ROE(5y)22.41%
ROIC(3y)8.42%
ROIC(5y)14.92%
ROICexc(3y)14.84%
ROICexc(5y)25.78%
ROICexgc(3y)32.35%
ROICexgc(5y)N/A
ROCE(3y)11.69%
ROCE(5y)20.72%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-55.02%
ROICexc growth 5Y-33.6%
OM growth 3Y-26.62%
OM growth 5Y-14.41%
PM growth 3Y-0.73%
PM growth 5Y19.11%
GM growth 3Y-4.61%
GM growth 5Y-3.67%
F-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.14 | ||
| Cap/Depr | 1442.16% | ||
| Cap/Sales | 202.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 166.44% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 3.84 |
F-Score4
WACC8.53%
ROIC/WACC0.42
Cap/Depr(3y)670.82%
Cap/Depr(5y)415.05%
Cap/Sales(3y)80.33%
Cap/Sales(5y)48.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-59.55%
EPS 3Y13.23%
EPS 5Y12.47%
EPS Q2Q%-50%
EPS Next Y40.28%
EPS Next 2Y27.42%
EPS Next 3Y16.25%
EPS Next 5YN/A
Revenue 1Y (TTM)78.42%
Revenue growth 3Y14.99%
Revenue growth 5Y8.25%
Sales Q2Q%104.86%
Revenue Next Year56.92%
Revenue Next 2Y30.52%
Revenue Next 3Y21.22%
Revenue Next 5YN/A
EBIT growth 1Y-32.36%
EBIT growth 3Y-15.61%
EBIT growth 5Y-7.36%
EBIT Next Year138.27%
EBIT Next 3Y40.16%
EBIT Next 5YN/A
FCF growth 1Y-549.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y62.22%
OCF growth 3Y12.28%
OCF growth 5Y19.77%