ETON PHARMACEUTICALS INC (ETON) Stock Fundamental Analysis
USA - NASDAQ:ETON - US29772L1089 - Common Stock
17.26 USD
+0.32 (+1.89%)
17.26 USD
0 (0%)
Overall ETON gets a fundamental rating of 4 out of 10. We evaluated ETON against 192 industry peers in the Pharmaceuticals industry. ETON may be in some trouble as it scores bad on both profitability and health. ETON is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year ETON has reported negative net income.
In the past year ETON had a positive cash flow from operations.
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 has a better Return On Assets (-4.06%) than 72.92% of its industry peers.
The Return On Equity of ETON (-17.23%) is better than 68.75% of its industry peers.
| 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
The Gross Margin of ETON (59.41%) is better than 68.23% of its industry peers.
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.
The debt/assets ratio for ETON is higher compared to a year ago.
2.2 Solvency
ETON has an Altman-Z score of 2.94. This is not the best score and indicates that ETON is in the grey zone with still only limited risk for bankruptcy at the moment.
ETON's Altman-Z score of 2.94 is fine compared to the rest of the industry. ETON outperforms 68.75% of its industry peers.
The Debt to FCF ratio of ETON is 7.35, which is on the high side as it means it would take ETON, 7.35 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 7.35, ETON is doing good in the industry, outperforming 79.17% of the companies in the same industry.
A Debt/Equity ratio of 1.26 is on the high side and indicates that ETON has dependencies on debt financing.
With a Debt to Equity ratio value of 1.26, ETON is not doing good in the industry: 74.48% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.26 | ||
| Debt/FCF | 7.35 | ||
| Altman-Z | 2.94 |
ROIC/WACCN/A
WACC8.76%
2.3 Liquidity
A Current Ratio of 1.77 indicates that ETON should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.77, ETON is doing worse than 66.15% of the companies in the same industry.
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.
ETON's Quick ratio of 1.16 is on the low side compared to the rest of the industry. ETON is outperformed by 73.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.16 |
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 23.29% in the past year. This is a very strong growth!
Measured over the past years, ETON shows a very strong growth in Revenue. The Revenue has been growing by 109.79% on average per year.
EPS 1Y (TTM)42.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-333.33%
Revenue 1Y (TTM)23.29%
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 42.81% on average over the next years. This is a very strong growth
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.
ETON is valuated correctly with a Price/Forward Earnings ratio of 16.43.
80.73% of the companies in the same industry are more expensive than ETON, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ETON to the average of the S&P500 Index (34.62), we can say ETON is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 16.43 |
4.2 Price Multiples
75.52% of the companies in the same industry are more expensive than ETON, based on the Enterprise Value to EBITDA ratio.
ETON's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ETON is cheaper than 74.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 112.8 | ||
| EV/EBITDA | 205.55 |
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 135.73% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y208.29%
EPS Next 3Y135.73%
5. Dividend
5.1 Amount
ETON does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.26
+0.32 (+1.89%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)
Earnings (Next)
Inst Owners62.6%
Inst Owner Change5.44%
Ins Owners4.3%
Ins Owner Change-7.37%
Market Cap462.91M
Revenue(TTM)39.01M
Net Income(TTM)-4.13M
Analysts82.22
Price Target30.6 (77.29%)
Short Float %11.38%
Short Ratio9.54
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)-3.57%
EPS NY rev (1m)0%
EPS NY rev (3m)-37.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 16.43 | ||
| P/S | 7.96 | ||
| P/FCF | 112.8 | ||
| P/OCF | 37.83 | ||
| P/B | 19.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 205.55 |
EPS(TTM)-0.12
EYN/A
EPS(NY)1.05
Fwd EY6.09%
FCF(TTM)0.15
FCFY0.89%
OCF(TTM)0.46
OCFY2.64%
SpS2.17
BVpS0.89
TBVpS-0.33
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/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
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 Turnover0.57
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 | 2.94 |
F-Score4
WACC8.76%
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 Y226.28%
EPS Next 2Y208.29%
EPS Next 3Y135.73%
EPS Next 5Y82.58%
Revenue 1Y (TTM)23.29%
Revenue growth 3Y21.35%
Revenue growth 5Y109.79%
Sales Q2Q%117.54%
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
ETON PHARMACEUTICALS INC / ETON FAQ
What is the fundamental rating for ETON stock?
ChartMill assigns a fundamental rating of 4 / 10 to ETON.
What is the valuation status of ETON PHARMACEUTICALS INC (ETON) stock?
ChartMill assigns a valuation rating of 5 / 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.
How financially healthy is ETON PHARMACEUTICALS INC?
The financial health rating of ETON PHARMACEUTICALS INC (ETON) is 3 / 10.