CIPHER PHARMACEUTICALS INC (CPH.CA) Stock Fundamental Analysis
TSX:CPH - Toronto Stock Exchange - CA17253X1050 - Common Stock - Currency: CAD
Taking everything into account, CPH scores 6 out of 10 in our fundamental rating. CPH was compared to 33 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! These ratings could make CPH a good candidate 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.
CPH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.67%, CPH belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
CPH has a better Return On Equity (8.79%) than 90.91% of its industry peers.
The Return On Invested Capital of CPH (3.60%) is better than 78.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CPH is in line with the industry average of 8.20%.
The 3 year average ROIC (8.42%) for CPH is well above the current ROIC(3.60%). The reason for the recent decline needs to be investigated.
| 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's Profit Margin of 23.40% is amongst the best of the industry. CPH outperforms 96.97% of its industry peers.
In the last couple of years the Profit Margin of CPH has grown nicely.
CPH has a Operating Margin of 18.39%. This is amongst the best in the industry. CPH outperforms 87.88% of its industry peers.
CPH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 71.95%, CPH belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
CPH's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CPH is destroying value.
Compared to 1 year ago, CPH has more shares outstanding
CPH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CPH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.73 indicates that CPH is not in any danger for bankruptcy at the moment.
The Altman-Z score of CPH (3.73) is better than 93.94% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that CPH is not too dependend on debt financing.
CPH has a Debt to Equity ratio (0.38) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.73 |
ROIC/WACC0.4
WACC8.95%
2.3 Liquidity
A Current Ratio of 2.28 indicates that CPH has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.28, CPH is in line with its industry, outperforming 57.58% of the companies in the same industry.
CPH has a Quick Ratio of 1.97. This is a normal value and indicates that CPH is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CPH (1.97) is better than 72.73% of its industry peers.
| 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%.
CPH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.25% yearly.
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.
Based on estimates for the next years, CPH will show a very strong growth in Revenue. The Revenue will grow by 21.22% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.96, CPH can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CPH indicates a rather cheap valuation: CPH is cheaper than 81.82% of the companies listed in the same industry.
CPH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.82, the valuation of CPH can be described as correct.
CPH's Price/Forward Earnings ratio is rather cheap when compared to the industry. CPH is cheaper than 90.91% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CPH to the average of the S&P500 Index (37.36), we can say CPH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.96 | ||
| Fwd PE | 12.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPH indicates a somewhat cheap valuation: CPH is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.16 |
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.
A more expensive valuation may be justified as CPH's earnings are expected to grow with 16.25% in the coming years.
PEG (NY)0.64
PEG (5Y)2.08
EPS Next 2Y27.42%
EPS Next 3Y16.25%
5. Dividend
5.1 Amount
CPH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CPH (7/23/2025, 7:00:00 PM)
12.72
+0.37 (+3%)
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 Cap325.89M
Analysts77.78
Price Target16.34 (28.46%)
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)0%
PT rev (3m)-14.67%
EPS NQ rev (1m)-3.03%
EPS NQ rev (3m)-3.03%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.96 | ||
| Fwd PE | 12.82 | ||
| P/S | 6.07 | ||
| P/FCF | N/A | ||
| P/OCF | 11.25 | ||
| P/B | 2.28 | ||
| P/tB | 22.25 | ||
| EV/EBITDA | 20.16 |
EPS(TTM)0.49
EY3.85%
EPS(NY)0.99
Fwd EY7.8%
FCF(TTM)-3.11
FCFYN/A
OCF(TTM)1.13
OCFY8.89%
SpS2.1
BVpS5.58
TBVpS0.57
PEG (NY)0.64
PEG (5Y)2.08
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 | 3.73 |
F-Score4
WACC8.95%
ROIC/WACC0.4
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 Year137.96%
EBIT Next 3Y40.1%
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%