Cumberland Pharmaceuticals Inc. Fundamental Analysis (NASDAQ: CPIX)
Cumberland Pharmaceuticals Inc. Fundamental Analysis (NASDAQ: CPIX)
Cumberland Pharmaceuticals Inc. (NASDAQ: CPIX) shows moderate financial fundamentals with a PE ratio of 1.40, profit margin of 2.75%, and ROE of 2.03%. The company generates $0.0B in annual revenue with strong year-over-year growth of 17.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.8/100 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 CPIX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCPIX demonstrates superior asset utilization.
Valuation Score
ExcellentCPIX trades at attractive valuation levels.
Growth Score
ExcellentCPIX delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCPIX maintains a strong and stable balance sheet.
Profitability Score
WeakCPIX struggles to sustain strong margins.
Key Financial Metrics
Is CPIX Expensive or Cheap?
P/E Ratio
CPIX trades at 1.40 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CPIX's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Cumberland Pharmaceuticals Inc. at 1.34 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -30.45 times EBITDA. This is generally considered low.
How Well Does CPIX Make Money?
Net Profit Margin
For every $100 in sales, Cumberland Pharmaceuticals Inc. keeps $2.75 as profit after all expenses.
Operating Margin
Core operations generate -38.19 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.03 in profit for every $100 of shareholder equity.
ROA
Cumberland Pharmaceuticals Inc. generates $60.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cumberland Pharmaceuticals Inc. generates limited operating cash flow of $-942.89K, signaling weaker underlying cash strength.
Free Cash Flow
Cumberland Pharmaceuticals Inc. generates weak or negative free cash flow of $-1.03M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.07 in free cash annually.
FCF Yield
CPIX converts -1.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.40
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.34
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
2.03
vs 25 benchmark
ROA
Return on assets percentage
0.61
vs 25 benchmark
ROCE
Return on capital employed
-0.12
vs 25 benchmark
How CPIX Stacks Against Its Sector Peers
| Metric | CPIX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.40 | 31.66 | Better (Cheaper) |
| ROE | 202.58% | 501.00% | Weak |
| Net Margin | 274.98% | -3647.00% (disorted) | Strong |
| Debt/Equity | 0.06 | -0.30 (disorted) | Distorted |
| Current Ratio | 3.05 | 5.78 | Strong Liquidity |
| ROA | 60.74% | -262.00% (disorted) | Strong |
CPIX outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cumberland Pharmaceuticals Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
20.54%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
13.90%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
-7.66%
Industry Style: Defensive, Growth, Innovation
Declining