ETON PHARMACEUTICALS INC (ETON) Stock Fundamental Analysis
NASDAQ:ETON • US29772L1089
17.93 USD
-0.29 (-1.59%)
At close: Feb 20, 2026
17.93 USD
0 (0%)
After Hours: 2/20/2026, 8:00:01 PM
We assign a fundamental rating of 4 out of 10 to ETON. ETON was compared to 191 industry peers in the Pharmaceuticals industry. While ETON seems to be doing ok healthwise, there are quite some concerns on its profitability. ETON is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
- ETON had negative earnings in the past year.
- In the past year ETON had a positive cash flow from operations.
- In the past 5 years ETON always reported negative net income.
- In multiple years ETON reported negative operating cash flow during the last 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -6.39%, ETON is in the better half of the industry, outperforming 71.73% of the companies in the same industry.
- ETON's Return On Equity of -28.89% is fine compared to the rest of the industry. ETON outperforms 62.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.39% | ||
| ROE | -28.89% | ||
| 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
- ETON has a better Gross Margin (51.36%) than 65.44% of its industry peers.
- ETON's Gross Margin has improved in the last couple of years.
- The Profit Margin and Operating Margin are not available for ETON so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 51.36% |
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.
- Compared to 5 years ago, ETON has more shares outstanding
- Compared to 1 year ago, ETON has a worse debt to assets ratio.
2.2 Solvency
- ETON has an Altman-Z score of 3.00. This indicates that ETON is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.00, ETON is doing good in the industry, outperforming 67.54% of the companies in the same industry.
- The Debt to FCF ratio of ETON is 2.36, which is a good value as it means it would take ETON, 2.36 years of fcf income to pay off all of its debts.
- ETON has a better Debt to FCF ratio (2.36) than 93.19% of its industry peers.
- A Debt/Equity ratio of 1.31 is on the high side and indicates that ETON has dependencies on debt financing.
- With a Debt to Equity ratio value of 1.31, ETON is not doing good in the industry: 75.92% of the companies in the same industry are doing better.
- Although ETON does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 3 |
ROIC/WACCN/A
WACC9.19%
2.3 Liquidity
- ETON has a Current Ratio of 1.63. 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 Current ratio of 1.63. This is in the lower half of the industry: ETON underperforms 68.59% of its industry peers.
- ETON has a Quick Ratio of 1.25. 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 Quick ratio of 1.25. This is in the lower half of the industry: ETON underperforms 70.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
- ETON shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.86%, which is quite impressive.
- The Revenue has grown by 102.77% 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)42.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-333.33%
Revenue 1Y (TTM)102.77%
Revenue growth 3Y21.35%
Revenue growth 5Y109.79%
Sales Q2Q%117.54%
3.2 Future
- Based on estimates for the next years, ETON will show a very strong growth in Earnings Per Share. The EPS will grow by 82.58% on average per year.
- The Revenue is expected to grow by 40.91% on average over the next years. This is a very strong growth
EPS Next Y19.86%
EPS Next 2Y192.94%
EPS Next 3Y134.56%
EPS Next 5Y82.58%
Revenue Next Year109.09%
Revenue Next 2Y64.69%
Revenue Next 3Y53.88%
Revenue Next 5Y40.91%
3.3 Evolution
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- ETON reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- The Price/Forward Earnings ratio is 19.46, which indicates a rather expensive current valuation of ETON.
- Based on the Price/Forward Earnings ratio, ETON is valued a bit cheaper than 78.53% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 28.06. ETON is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.46 |
4.2 Price Multiples
- 75.39% of the companies in the same industry are more expensive than ETON, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, ETON is valued a bit cheaper than the industry average as 79.58% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.3 | ||
| EV/EBITDA | 428.56 |
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.
- A more expensive valuation may be justified as ETON's earnings are expected to grow with 134.56% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y192.94%
EPS Next 3Y134.56%
5. Dividend
5.1 Amount
- No dividends for ETON!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
17.93
-0.29 (-1.59%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-06 2025-11-06/amc
Earnings (Next)03-12 2026-03-12/amc
Inst Owners66.2%
Inst Owner Change-4.11%
Ins Owners4.3%
Ins Owner Change-0.5%
Market Cap480.88M
Revenue(TTM)70.32M
Net Income(TTM)-6.68M
Analysts82.22
Price Target30.6 (70.66%)
Short Float %7.78%
Short Ratio8.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-171.8%
Min EPS beat(2)-176.25%
Max EPS beat(2)-167.35%
EPS beat(4)1
Avg EPS beat(4)-200.94%
Min EPS beat(4)-488.82%
Max EPS beat(4)28.68%
EPS beat(8)3
Avg EPS beat(8)-70.46%
EPS beat(12)7
Avg EPS beat(12)8.52%
EPS beat(16)8
Avg EPS beat(16)-25.56%
Revenue beat(2)2
Avg Revenue beat(2)9.29%
Min Revenue beat(2)7.55%
Max Revenue beat(2)11.04%
Revenue beat(4)4
Avg Revenue beat(4)9.75%
Min Revenue beat(4)7.55%
Max Revenue beat(4)11.97%
Revenue beat(8)6
Avg Revenue beat(8)4.4%
Revenue beat(12)9
Avg Revenue beat(12)10.96%
Revenue beat(16)10
Avg Revenue beat(16)0.36%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-57.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-163.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.46 | ||
| P/S | 6.84 | ||
| P/FCF | 37.3 | ||
| P/OCF | 22.57 | ||
| P/B | 20.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 428.56 |
EPS(TTM)-0.12
EYN/A
EPS(NY)0.92
Fwd EY5.14%
FCF(TTM)0.48
FCFY2.68%
OCF(TTM)0.79
OCFY4.43%
SpS2.62
BVpS0.86
TBVpS-0.33
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.39% | ||
| ROE | -28.89% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 51.36% | ||
| FCFM | 18.34% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.31 | ||
| Debt/FCF | 2.36 | ||
| Debt/EBITDA | 27.16 | ||
| Cap/Depr | 248.85% | ||
| Cap/Sales | 11.97% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 1906.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.63 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 3 |
F-Score4
WACC9.19%
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)42.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-333.33%
EPS Next Y19.86%
EPS Next 2Y192.94%
EPS Next 3Y134.56%
EPS Next 5Y82.58%
Revenue 1Y (TTM)102.77%
Revenue growth 3Y21.35%
Revenue growth 5Y109.79%
Sales Q2Q%117.54%
Revenue Next Year109.09%
Revenue Next 2Y64.69%
Revenue Next 3Y53.88%
Revenue Next 5Y40.91%
EBIT growth 1Y56.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year622.77%
EBIT Next 3Y170.16%
EBIT Next 5YN/A
FCF growth 1Y39.24%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y129.88%
OCF growth 3YN/A
OCF growth 5YN/A
ETON PHARMACEUTICALS INC / ETON FAQ
What is the fundamental rating for ETON stock?
ChartMill assigns a fundamental rating of 4 / 10 to ETON.
Can you provide the valuation status for ETON PHARMACEUTICALS INC?
ChartMill assigns a valuation rating of 4 / 10 to ETON PHARMACEUTICALS INC (ETON). This can be considered as Fairly Valued.
What is the profitability of ETON stock?
ETON PHARMACEUTICALS INC (ETON) has a profitability rating of 3 / 10.
Can you provide the financial health for ETON stock?
The financial health rating of ETON PHARMACEUTICALS INC (ETON) is 5 / 10.