ETON PHARMACEUTICALS INC (ETON) Stock Fundamental Analysis
USA - NASDAQ:ETON - US29772L1089 - Common Stock
18.18 USD
-0.16 (-0.87%)
18.18 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to ETON. ETON was compared to 195 industry peers in the Pharmaceuticals industry. While ETON seems to be doing ok healthwise, there are quite some concerns on its profitability. ETON is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year ETON has reported negative net income.
ETON had a positive operating cash flow in the past year.
ETON had negative earnings in each of the past 5 years.
In multiple years ETON reported negative operating cash flow during the last 5 years.
1.2 Ratios
ETON's Return On Assets of -4.06% is fine compared to the rest of the industry. ETON outperforms 72.31% of its industry peers.
With a decent Return On Equity value of -17.23%, ETON is doing good in the industry, outperforming 69.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.06% | ||
| ROE | -17.23% | ||
| ROIC | N/A |
ROA(3y)-14.67%
ROA(5y)-31.48%
ROE(3y)-30.22%
ROE(5y)-56.08%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a decent Gross Margin value of 59.41%, ETON is doing good in the industry, outperforming 66.67% of the companies in the same industry.
ETON's Gross Margin has improved in the last couple of years.
ETON does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 59.41% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.67%
GM growth 5Y2.47%
2. Health
2.1 Basic Checks
ETON does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ETON has been increased compared to 1 year ago.
The number of shares outstanding for ETON has been increased compared to 5 years ago.
Compared to 1 year ago, ETON has a worse debt to assets ratio.
2.2 Solvency
ETON has an Altman-Z score of 3.13. This indicates that ETON is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.13, ETON is doing good in the industry, outperforming 71.28% of the companies in the same industry.
ETON has a debt to FCF ratio of 7.35. This is a slightly negative value and a sign of low solvency as ETON would need 7.35 years to pay back of all of its debts.
ETON has a Debt to FCF ratio of 7.35. This is amongst the best in the industry. ETON outperforms 80.51% of its industry peers.
ETON has a Debt/Equity ratio of 1.26. This is a high value indicating a heavy dependency on external financing.
ETON has a Debt to Equity ratio of 1.26. This is in the lower half of the industry: ETON underperforms 75.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 7.35 | ||
| Altman-Z | 3.13 |
ROIC/WACCN/A
WACC8.51%
2.3 Liquidity
ETON has a Current Ratio of 1.77. This is a normal value and indicates that ETON is financially healthy and should not expect problems in meeting its short term obligations.
ETON has a worse Current ratio (1.77) than 64.62% of its industry peers.
ETON has a Quick Ratio of 1.16. This is a normal value and indicates that ETON is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.16, ETON is not doing good in the industry: 71.28% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 92.31% over the past year.
The Revenue has grown by 85.39% in the past year. This is a very strong growth!
The Revenue has been growing by 109.79% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)92.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%16.67%
Revenue 1Y (TTM)85.39%
Revenue growth 3Y21.35%
Revenue growth 5Y109.79%
Sales Q2Q%108.6%
3.2 Future
ETON is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 82.58% yearly.
Based on estimates for the next years, ETON will show a very strong growth in Revenue. The Revenue will grow by 42.81% on average per year.
EPS Next Y226.28%
EPS Next 2Y208.29%
EPS Next 3Y135.73%
EPS Next 5Y82.58%
Revenue Next Year107.09%
Revenue Next 2Y70.78%
Revenue Next 3Y56.05%
Revenue Next 5Y42.81%
3.3 Evolution
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
The Price/Earnings Ratio is negative for ETON. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 17.30 indicates a rather expensive valuation of ETON.
ETON's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ETON is cheaper than 77.44% of the companies in the same industry.
ETON is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ETON is valued a bit cheaper than 75.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ETON is valued a bit cheaper than 75.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 118.81 | ||
| EV/EBITDA | 216.45 |
4.3 Compensation for Growth
ETON's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ETON's earnings are expected to grow with 135.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y208.29%
EPS Next 3Y135.73%
5. Dividend
5.1 Amount
No dividends for ETON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.18
-0.16 (-0.87%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners62.6%
Inst Owner Change0.19%
Ins Owners4.3%
Ins Owner Change-4.22%
Market Cap487.59M
Analysts82.22
Price Target30.6 (68.32%)
Short Float %14.22%
Short Ratio11.42
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)1
Avg EPS beat(2)-69.34%
Min EPS beat(2)-167.35%
Max EPS beat(2)28.68%
EPS beat(4)2
Avg EPS beat(4)-58.34%
Min EPS beat(4)-488.82%
Max EPS beat(4)394.12%
EPS beat(8)4
Avg EPS beat(8)-38.37%
EPS beat(12)8
Avg EPS beat(12)25.01%
EPS beat(16)8
Avg EPS beat(16)-19.19%
Revenue beat(2)2
Avg Revenue beat(2)11.51%
Min Revenue beat(2)11.04%
Max Revenue beat(2)11.97%
Revenue beat(4)4
Avg Revenue beat(4)8.96%
Min Revenue beat(4)4.4%
Max Revenue beat(4)11.97%
Revenue beat(8)6
Avg Revenue beat(8)4.72%
Revenue beat(12)9
Avg Revenue beat(12)10.63%
Revenue beat(16)9
Avg Revenue beat(16)-4.79%
PT rev (1m)0%
PT rev (3m)1.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-1.89%
EPS NY rev (3m)-37.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 17.3 | ||
| P/S | 8.38 | ||
| P/FCF | 118.81 | ||
| P/OCF | 39.84 | ||
| P/B | 20.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 216.45 |
EPS(TTM)-0.02
EYN/A
EPS(NY)1.05
Fwd EY5.78%
FCF(TTM)0.15
FCFY0.84%
OCF(TTM)0.46
OCFY2.51%
SpS2.17
BVpS0.89
TBVpS-0.33
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.06% | ||
| ROE | -17.23% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 59.41% | ||
| FCFM | 7.05% |
ROA(3y)-14.67%
ROA(5y)-31.48%
ROE(3y)-30.22%
ROE(5y)-56.08%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.67%
GM growth 5Y2.47%
F-Score4
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 7.35 | ||
| Debt/EBITDA | 13.34 | ||
| Cap/Depr | 306.48% | ||
| Cap/Sales | 13.98% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 541.03% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 3.13 |
F-Score4
WACC8.51%
ROIC/WACCN/A
Cap/Depr(3y)372.49%
Cap/Depr(5y)366.77%
Cap/Sales(3y)13.75%
Cap/Sales(5y)36.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)92.31%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%16.67%
EPS Next Y226.28%
EPS Next 2Y208.29%
EPS Next 3Y135.73%
EPS Next 5Y82.58%
Revenue 1Y (TTM)85.39%
Revenue growth 3Y21.35%
Revenue growth 5Y109.79%
Sales Q2Q%108.6%
Revenue Next Year107.09%
Revenue Next 2Y70.78%
Revenue Next 3Y56.05%
Revenue Next 5Y42.81%
EBIT growth 1Y93.76%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year732.34%
EBIT Next 3Y170.59%
EBIT Next 5YN/A
FCF growth 1Y-12.49%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y82.66%
OCF growth 3YN/A
OCF growth 5YN/A