Catalyst Pharmaceuticals, Inc.
Catalyst Pharmaceuticals, Inc. Fundamental Analysis
Catalyst Pharmaceuticals, Inc. (CPRX) shows strong financial fundamentals with a PE ratio of 17.22, profit margin of 37.08%, and ROE of 23.65%. The company generates $0.6B in annual revenue with strong year-over-year growth of 19.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 87.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CPRX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCPRX demonstrates superior asset utilization.
Valuation Score
ModerateCPRX shows balanced valuation metrics.
Growth Score
ExcellentCPRX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCPRX maintains a strong and stable balance sheet.
Profitability Score
ExcellentCPRX achieves industry-leading margins.
Key Financial Metrics
Is CPRX Expensive or Cheap?
P/E Ratio
CPRX trades at 17.22 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CPRX's PEG of 2.04 indicates potential overvaluation.
Price to Book
The market values Catalyst Pharmaceuticals, Inc. at 3.76 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.57 times EBITDA. This signals the market has high growth expectations.
How Well Does CPRX Make Money?
Net Profit Margin
For every $100 in sales, Catalyst Pharmaceuticals, Inc. keeps $37.08 as profit after all expenses.
Operating Margin
Core operations generate 44.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.65 in profit for every $100 of shareholder equity.
ROA
Catalyst Pharmaceuticals, Inc. generates $19.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Catalyst Pharmaceuticals, Inc. generates strong operating cash flow of $208.43M, reflecting robust business health.
Free Cash Flow
Catalyst Pharmaceuticals, Inc. generates strong free cash flow of $208.34M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.70 in free cash annually.
FCF Yield
CPRX converts 5.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.19
vs 25 benchmark
ROCE
Return on capital employed
0.26
vs 25 benchmark
How CPRX Stacks Against Its Sector Peers
| Metric | CPRX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.22 | 29.36 | Better (Cheaper) |
| ROE | 23.65% | 733.00% | Weak |
| Net Margin | 37.08% | -46094.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 7.10 | 4.35 | Strong Liquidity |
| ROA | 19.29% | -21034.00% (disorted) | Strong |
CPRX outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Catalyst Pharmaceuticals, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
318.69%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
141.94%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
292.20%
Industry Style: Defensive, Growth, Innovation
High Growth