Logo image of CPH.CA

CIPHER PHARMACEUTICALS INC (CPH.CA) Stock Fundamental Analysis

TSX:CPH - Toronto Stock Exchange - CA17253X1050 - Common Stock - Currency: CAD

12.89  -0.09 (-0.69%)

Fundamental Rating

6

Taking everything into account, CPH scores 6 out of 10 in our fundamental rating. CPH was compared to 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 valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

In the past year CPH was profitable.
In the past year CPH had a positive cash flow from operations.
CPH had positive earnings in 4 of the past 5 years.
Of the past 5 years CPH 4 years had a positive operating cash flow.
CPH.CA Yearly Net Income VS EBIT VS OCF VS FCFCPH.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M -20M

1.2 Ratios

CPH has a better Return On Assets (10.31%) than 90.91% of its industry peers.
The Return On Equity of CPH (16.04%) is better than 90.91% of its industry peers.
With an excellent Return On Invested Capital value of 5.11%, CPH belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
CPH had an Average Return On Invested Capital over the past 3 years of 15.05%. This is significantly above the industry average of 6.28%.
The 3 year average ROIC (15.05%) for CPH is well above the current ROIC(5.11%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 10.31%
ROE 16.04%
ROIC 5.11%
ROA(3y)24.93%
ROA(5y)18.41%
ROE(3y)28.94%
ROE(5y)22.47%
ROIC(3y)15.05%
ROIC(5y)19.67%
CPH.CA Yearly ROA, ROE, ROICCPH.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 -100 -150 -200

1.3 Margins

With an excellent Profit Margin value of 59.92%, CPH belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of CPH has grown nicely.
CPH's Operating Margin of 37.35% is amongst the best of the industry. CPH outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of CPH has grown nicely.
Looking at the Gross Margin, with a value of 80.78%, CPH belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
In the last couple of years the Gross Margin of CPH has declined.
Industry RankSector Rank
OM 37.35%
PM (TTM) 59.92%
GM 80.78%
OM growth 3Y-5.58%
OM growth 5Y16.02%
PM growth 3Y66%
PM growth 5Y109.73%
GM growth 3Y-2.01%
GM growth 5Y-2.11%
CPH.CA Yearly Profit, Operating, Gross MarginsCPH.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 100 -100

5

2. Health

2.1 Basic Checks

CPH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for CPH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
CPH.CA Yearly Shares OutstandingCPH.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M 25M
CPH.CA Yearly Total Debt VS Total AssetsCPH.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

2.2 Solvency

An Altman-Z score of 3.71 indicates that CPH is not in any danger for bankruptcy at the moment.
CPH has a better Altman-Z score (3.71) than 93.94% of its industry peers.
CPH has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
CPH has a Debt to Equity ratio of 0.41. This is comparable to the rest of the industry: CPH outperforms 48.48% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF N/A
Altman-Z 3.71
ROIC/WACC0.6
WACC8.54%
CPH.CA Yearly LT Debt VS Equity VS FCFCPH.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M

2.3 Liquidity

A Current Ratio of 2.00 indicates that CPH has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.00, CPH is doing good in the industry, outperforming 60.61% of the companies in the same industry.
CPH has a Quick Ratio of 1.64. This is a normal value and indicates that CPH is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.64, CPH is doing good in the industry, outperforming 63.64% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2
Quick Ratio 1.64
CPH.CA Yearly Current Assets VS Current LiabilitesCPH.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M

5

3. Growth

3.1 Past

The earnings per share for CPH have decreased strongly by -50.00% in the last year.
Measured over the past years, CPH shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.34% on average per year.
CPH shows a strong growth in Revenue. In the last year, the Revenue has grown by 25.05%.
CPH shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.44% yearly.
EPS 1Y (TTM)-50%
EPS 3Y66.88%
EPS 5Y48.34%
EPS Q2Q%-96.3%
Revenue 1Y (TTM)25.05%
Revenue growth 3Y-0.7%
Revenue growth 5Y-1.44%
Sales Q2Q%70.9%

3.2 Future

Based on estimates for the next years, CPH will show a small growth in Earnings Per Share. The EPS will grow by 7.07% on average per year.
The Revenue is expected to grow by 36.98% on average over the next years. This is a very strong growth
EPS Next Y-9.65%
EPS Next 2Y2.18%
EPS Next 3Y7.07%
EPS Next 5YN/A
Revenue Next Year51.04%
Revenue Next 2Y53.39%
Revenue Next 3Y36.98%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.
CPH.CA Yearly Revenue VS EstimatesCPH.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 10M 20M 30M 40M 50M
CPH.CA Yearly EPS VS EstimatesCPH.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 -0.5 -1

5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 14.48, CPH is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of CPH indicates a rather cheap valuation: CPH is cheaper than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 30.19, CPH is valued rather cheaply.
The Price/Forward Earnings ratio is 11.01, which indicates a very decent valuation of CPH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CPH indicates a rather cheap valuation: CPH is cheaper than 87.88% of the companies listed in the same industry.
CPH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.58.
Industry RankSector Rank
PE 14.48
Fwd PE 11.01
CPH.CA Price Earnings VS Forward Price EarningsCPH.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

CPH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CPH is cheaper than 63.64% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 20.82
CPH.CA Per share dataCPH.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4

4.3 Compensation for Growth

The excellent profitability rating of CPH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y2.18%
EPS Next 3Y7.07%

0

5. Dividend

5.1 Amount

CPH does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

CIPHER PHARMACEUTICALS INC

TSX:CPH (2/14/2025, 7:00:00 PM)

12.89

-0.09 (-0.69%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-07 2024-11-07/amc
Earnings (Next)03-13 2025-03-13/amc
Inst Owners1.31%
Inst Owner ChangeN/A
Ins Owners5.63%
Ins Owner ChangeN/A
Market Cap329.86M
Analysts77.5
Price Target20.43 (58.49%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)1
Avg EPS beat(2)-45.46%
Min EPS beat(2)-92.76%
Max EPS beat(2)1.84%
EPS beat(4)3
Avg EPS beat(4)54.94%
Min EPS beat(4)-92.76%
Max EPS beat(4)212.66%
EPS beat(8)7
Avg EPS beat(8)163.07%
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)1
Avg Revenue beat(2)2.05%
Min Revenue beat(2)-2.71%
Max Revenue beat(2)6.82%
Revenue beat(4)2
Avg Revenue beat(4)3.12%
Min Revenue beat(4)-6.92%
Max Revenue beat(4)15.29%
Revenue beat(8)3
Avg Revenue beat(8)4.01%
Revenue beat(12)3
Avg Revenue beat(12)-0.45%
Revenue beat(16)6
Avg Revenue beat(16)1.07%
PT rev (1m)0%
PT rev (3m)13.62%
EPS NQ rev (1m)-41.46%
EPS NQ rev (3m)0%
EPS NY rev (1m)39.47%
EPS NY rev (3m)7.07%
Revenue NQ rev (1m)-4.76%
Revenue NQ rev (3m)117.02%
Revenue NY rev (1m)-3.56%
Revenue NY rev (3m)-4.07%
Valuation
Industry RankSector Rank
PE 14.48
Fwd PE 11.01
P/S 8.78
P/FCF N/A
P/OCF 17.77
P/B 2.35
P/tB N/A
EV/EBITDA 20.82
EPS(TTM)0.89
EY6.9%
EPS(NY)1.17
Fwd EY9.08%
FCF(TTM)-3.72
FCFYN/A
OCF(TTM)0.73
OCFY5.63%
SpS1.47
BVpS5.48
TBVpS-0.16
PEG (NY)N/A
PEG (5Y)0.3
Profitability
Industry RankSector Rank
ROA 10.31%
ROE 16.04%
ROCE 7.09%
ROIC 5.11%
ROICexc 5.48%
ROICexgc 25.28%
OM 37.35%
PM (TTM) 59.92%
GM 80.78%
FCFM N/A
ROA(3y)24.93%
ROA(5y)18.41%
ROE(3y)28.94%
ROE(5y)22.47%
ROIC(3y)15.05%
ROIC(5y)19.67%
ROICexc(3y)29.91%
ROICexc(5y)31.89%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)20.91%
ROCE(5y)27.31%
ROICexcg growth 3Y-42.56%
ROICexcg growth 5YN/A
ROICexc growth 3Y-20.14%
ROICexc growth 5Y2.77%
OM growth 3Y-5.58%
OM growth 5Y16.02%
PM growth 3Y66%
PM growth 5Y109.73%
GM growth 3Y-2.01%
GM growth 5Y-2.11%
F-Score3
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF N/A
Debt/EBITDA 3.2
Cap/Depr 2881.1%
Cap/Sales 303.02%
Interest Coverage 250
Cash Conversion 103.27%
Profit Quality N/A
Current Ratio 2
Quick Ratio 1.64
Altman-Z 3.71
F-Score3
WACC8.54%
ROIC/WACC0.6
Cap/Depr(3y)6.61%
Cap/Depr(5y)38.73%
Cap/Sales(3y)0.36%
Cap/Sales(5y)2.08%
Profit Quality(3y)98.39%
Profit Quality(5y)147.94%
High Growth Momentum
Growth
EPS 1Y (TTM)-50%
EPS 3Y66.88%
EPS 5Y48.34%
EPS Q2Q%-96.3%
EPS Next Y-9.65%
EPS Next 2Y2.18%
EPS Next 3Y7.07%
EPS Next 5YN/A
Revenue 1Y (TTM)25.05%
Revenue growth 3Y-0.7%
Revenue growth 5Y-1.44%
Sales Q2Q%70.9%
Revenue Next Year51.04%
Revenue Next 2Y53.39%
Revenue Next 3Y36.98%
Revenue Next 5YN/A
EBIT growth 1Y-3.49%
EBIT growth 3Y-6.23%
EBIT growth 5Y14.36%
EBIT Next Year15.14%
EBIT Next 3Y28.36%
EBIT Next 5YN/A
FCF growth 1Y-555.23%
FCF growth 3Y13.2%
FCF growth 5Y61.12%
OCF growth 1Y-11.74%
OCF growth 3Y11.03%
OCF growth 5Y14.61%