CATALYST PHARMACEUTICALS INC (CPRX) Stock Fundamental Analysis
NASDAQ:CPRX - Nasdaq - US14888U1016 - Common Stock - Currency: USD
We assign a fundamental rating of 8 out of 10 to CPRX. CPRX was compared to 550 industry peers in the Biotechnology industry. CPRX gets an excellent profitability rating and is at the same time showing great financial health properties. CPRX has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings could make CPRX a good candidate for value and 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.
Each year in the past 5 years CPRX has been profitable.
Each year in the past 5 years CPRX had a positive operating cash flow.
1.2 Ratios
CPRX has a better Return On Assets (21.47%) than 97.45% of its industry peers.
The Return On Equity of CPRX (24.38%) is better than 96.73% of its industry peers.
CPRX's Return On Invested Capital of 21.45% is amongst the best of the industry. CPRX outperforms 97.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CPRX is significantly above the industry average of 15.30%.
The last Return On Invested Capital (21.45%) for CPRX is above the 3 year average (20.37%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.47% | ||
| ROE | 24.38% | ||
| ROIC | 21.45% |
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 has a Profit Margin of 37.36%. This is amongst the best in the industry. CPRX outperforms 97.64% of its industry peers.
In the last couple of years the Profit Margin of CPRX has remained more or less at the same level.
CPRX has a Operating Margin of 43.58%. This is amongst the best in the industry. CPRX outperforms 99.27% of its industry peers.
In the last couple of years the Operating Margin of CPRX has grown nicely.
CPRX has a better Gross Margin (85.78%) than 89.09% of its industry peers.
CPRX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.58% | ||
| PM (TTM) | 37.36% | ||
| GM | 85.78% |
OM growth 3Y2.16%
OM growth 5Y5%
PM growth 3Y5.91%
PM growth 5Y1.34%
GM growth 3Y0.61%
GM growth 5Y0.11%
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.
Compared to 1 year ago, CPRX has more shares outstanding
The number of shares outstanding for CPRX has been increased compared to 5 years ago.
There is no outstanding debt for CPRX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
CPRX has an Altman-Z score of 15.52. This indicates that CPRX is financially healthy and has little risk of bankruptcy at the moment.
CPRX has a Altman-Z score of 15.52. This is amongst the best in the industry. CPRX outperforms 90.55% 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 | 15.52 |
ROIC/WACC2.19
WACC9.81%
2.3 Liquidity
CPRX has a Current Ratio of 6.71. This indicates that CPRX is financially healthy and has no problem in meeting its short term obligations.
CPRX has a Current ratio of 6.71. This is in the better half of the industry: CPRX outperforms 64.55% of its industry peers.
CPRX has a Quick Ratio of 6.55. This indicates that CPRX is financially healthy and has no problem in meeting its short term obligations.
CPRX has a better Quick ratio (6.55) than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.71 | ||
| Quick Ratio | 6.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 205.56% over the past year.
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 28.54%.
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)205.56%
EPS 3Y52.41%
EPS 5Y34.29%
EPS Q2Q%24.24%
Revenue 1Y (TTM)28.54%
Revenue growth 3Y51.72%
Revenue growth 5Y36.89%
Sales Q2Q%19.44%
3.2 Future
The Earnings Per Share is expected to grow by 29.40% on average over the next years. This is a very strong growth
Based on estimates for the next years, CPRX will show a quite strong growth in Revenue. The Revenue will grow by 12.18% on average per year.
EPS Next Y13.68%
EPS Next 2Y14.77%
EPS Next 3Y13.44%
EPS Next 5Y29.4%
Revenue Next Year15.89%
Revenue Next 2Y12.29%
Revenue Next 3Y12.18%
Revenue Next 5Y12.18%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.24, the valuation of CPRX can be described as correct.
Based on the Price/Earnings ratio, CPRX is valued cheaper than 95.82% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.11. CPRX is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.70, the valuation of CPRX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CPRX is valued cheaply inside the industry as 96.91% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 35.78. CPRX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.7 |
4.2 Price Multiples
CPRX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CPRX is cheaper than 98.18% of the companies in the same industry.
CPRX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CPRX is cheaper than 97.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.96 | ||
| EV/EBITDA | 6.44 |
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 CPRX may justify a higher PE ratio.
A more expensive valuation may be justified as CPRX's earnings are expected to grow with 13.44% in the coming years.
PEG (NY)0.89
PEG (5Y)0.36
EPS Next 2Y14.77%
EPS Next 3Y13.44%
5. Dividend
5.1 Amount
No dividends for CPRX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.19
-0.15 (-0.74%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners83.35%
Inst Owner Change-0.39%
Ins Owners5.41%
Ins Owner Change-1.1%
Market Cap2.46B
Analysts88.57
Price Target34.68 (71.77%)
Short Float %7.78%
Short Ratio7.07
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)2
Avg EPS beat(2)16.95%
Min EPS beat(2)4.13%
Max EPS beat(2)29.76%
EPS beat(4)4
Avg EPS beat(4)18.54%
Min EPS beat(4)4.13%
Max EPS beat(4)29.76%
EPS beat(8)8
Avg EPS beat(8)15.48%
EPS beat(12)11
Avg EPS beat(12)12.83%
EPS beat(16)12
Avg EPS beat(16)7.88%
Revenue beat(2)2
Avg Revenue beat(2)3.81%
Min Revenue beat(2)2.19%
Max Revenue beat(2)5.44%
Revenue beat(4)4
Avg Revenue beat(4)3.37%
Min Revenue beat(4)2.19%
Max Revenue beat(4)5.44%
Revenue beat(8)7
Avg Revenue beat(8)2.76%
Revenue beat(12)11
Avg Revenue beat(12)3.19%
Revenue beat(16)13
Avg Revenue beat(16)2.7%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)0%
EPS NY rev (3m)2.46%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 11.7 | ||
| P/S | 4.41 | ||
| P/FCF | 8.96 | ||
| P/OCF | 8.95 | ||
| P/B | 2.88 | ||
| P/tB | 3.43 | ||
| EV/EBITDA | 6.44 |
EPS(TTM)1.65
EY8.17%
EPS(NY)1.73
Fwd EY8.55%
FCF(TTM)2.25
FCFY11.15%
OCF(TTM)2.26
OCFY11.17%
SpS4.58
BVpS7.02
TBVpS5.89
PEG (NY)0.89
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.47% | ||
| ROE | 24.38% | ||
| ROCE | 28.34% | ||
| ROIC | 21.45% | ||
| ROICexc | 89.37% | ||
| ROICexgc | 270.38% | ||
| OM | 43.58% | ||
| PM (TTM) | 37.36% | ||
| GM | 85.78% | ||
| FCFM | 49.19% |
ROA(3y)18.85%
ROA(5y)22.43%
ROE(3y)22.87%
ROE(5y)26.38%
ROIC(3y)20.37%
ROIC(5y)19.67%
ROICexc(3y)162.63%
ROICexc(5y)159.51%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)26.92%
ROCE(5y)25.99%
ROICexcg growth 3Y8.72%
ROICexcg growth 5YN/A
ROICexc growth 3Y-30.16%
ROICexc growth 5YN/A
OM growth 3Y2.16%
OM growth 5Y5%
PM growth 3Y5.91%
PM growth 5Y1.34%
GM growth 3Y0.61%
GM growth 5Y0.11%
F-Score6
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 0.99% | ||
| Cap/Sales | 0.07% | ||
| Interest Coverage | 165.59 | ||
| Cash Conversion | 97.81% | ||
| Profit Quality | 131.65% | ||
| Current Ratio | 6.71 | ||
| Quick Ratio | 6.55 | ||
| Altman-Z | 15.52 |
F-Score6
WACC9.81%
ROIC/WACC2.19
Cap/Depr(3y)0.72%
Cap/Depr(5y)100.44%
Cap/Sales(3y)0.06%
Cap/Sales(5y)0.18%
Profit Quality(3y)162.12%
Profit Quality(5y)139.35%
High Growth Momentum
Growth
EPS 1Y (TTM)205.56%
EPS 3Y52.41%
EPS 5Y34.29%
EPS Q2Q%24.24%
EPS Next Y13.68%
EPS Next 2Y14.77%
EPS Next 3Y13.44%
EPS Next 5Y29.4%
Revenue 1Y (TTM)28.54%
Revenue growth 3Y51.72%
Revenue growth 5Y36.89%
Sales Q2Q%19.44%
Revenue Next Year15.89%
Revenue Next 2Y12.29%
Revenue Next 3Y12.18%
Revenue Next 5Y12.18%
EBIT growth 1Y183.49%
EBIT growth 3Y55%
EBIT growth 5Y43.74%
EBIT Next Year24.8%
EBIT Next 3Y19.23%
EBIT Next 5YN/A
FCF growth 1Y121.55%
FCF growth 3Y59.11%
FCF growth 5Y47.22%
OCF growth 1Y121.67%
OCF growth 3Y58.35%
OCF growth 5Y47.28%