Elite Pharmaceuticals, Inc.
Elite Pharmaceuticals, Inc. Fundamental Analysis
Elite Pharmaceuticals, Inc. (ELTP) shows strong financial fundamentals with a PE ratio of 9.90, profit margin of 30.98%, and ROE of 71.43%. The company generates $0.1B in annual revenue with strong year-over-year growth of 48.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 84.1/100 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 ELTP's fundamental strength across five key dimensions:
Efficiency Score
ExcellentELTP demonstrates superior asset utilization.
Valuation Score
ExcellentELTP trades at attractive valuation levels.
Growth Score
ModerateELTP shows steady but slowing expansion.
Financial Health Score
ExcellentELTP maintains a strong and stable balance sheet.
Profitability Score
ExcellentELTP achieves industry-leading margins.
Key Financial Metrics
Is ELTP Expensive or Cheap?
P/E Ratio
ELTP trades at 9.90 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ELTP's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Elite Pharmaceuticals, Inc. at 5.35 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.69 times EBITDA. This is generally considered low.
How Well Does ELTP Make Money?
Net Profit Margin
For every $100 in sales, Elite Pharmaceuticals, Inc. keeps $30.98 as profit after all expenses.
Operating Margin
Core operations generate 35.74 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $71.43 in profit for every $100 of shareholder equity.
ROA
Elite Pharmaceuticals, Inc. generates $34.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Elite Pharmaceuticals, Inc. produces operating cash flow of $18.53M, showing steady but balanced cash generation.
Free Cash Flow
Elite Pharmaceuticals, Inc. generates strong free cash flow of $17.24M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
ELTP converts 4.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
7.34
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.71
vs 25 benchmark
ROA
Return on assets percentage
0.34
vs 25 benchmark
ROCE
Return on capital employed
0.44
vs 25 benchmark
How ELTP Stacks Against Its Sector Peers
| Metric | ELTP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.90 | 29.78 | Better (Cheaper) |
| ROE | 71.43% | 792.00% | Weak |
| Net Margin | 30.98% | -23280.00% (disorted) | Strong |
| Debt/Equity | 0.09 | 0.25 | Strong (Low Leverage) |
| Current Ratio | 7.34 | 4.60 | Strong Liquidity |
| ROA | 34.34% | -18077.00% (disorted) | Strong |
ELTP 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 Elite Pharmaceuticals, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
263.89%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-50.05%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
423.83%
Industry Style: Defensive, Growth, Innovation
High Growth