Eton Pharmaceuticals, Inc. Fundamental Analysis (NASDAQ: ETON)
Eton Pharmaceuticals, Inc. Fundamental Analysis (NASDAQ: ETON)
Eton Pharmaceuticals, Inc. (NASDAQ: ETON) shows weak financial fundamentals with a PE ratio of 38.55, profit margin of 35.35%, and ROE of 1.05%. The company generates $0.1B in annual revenue with weak year-over-year growth of 1.05%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 83.2/100 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 ETON's fundamental strength across five key dimensions:
Efficiency Score
ExcellentETON demonstrates superior asset utilization.
Valuation Score
ModerateETON shows balanced valuation metrics.
Growth Score
WeakETON faces weak or negative growth trends.
Financial Health Score
ExcellentETON maintains a strong and stable balance sheet.
Profitability Score
ExcellentETON achieves industry-leading margins.
Key Financial Metrics
Is ETON Expensive or Cheap?
P/E Ratio
ETON trades at 38.55 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ETON's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Eton Pharmaceuticals, Inc. at 22.44 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 44.87 times EBITDA. This signals the market has high growth expectations.
How Well Does ETON Make Money?
Net Profit Margin
For every $100 in sales, Eton Pharmaceuticals, Inc. keeps $35.35 as profit after all expenses.
Operating Margin
Core operations generate 28.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.05 in profit for every $100 of shareholder equity.
ROA
Eton Pharmaceuticals, Inc. generates $31.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Eton Pharmaceuticals, Inc. generates strong operating cash flow of $38.59M, reflecting robust business health.
Free Cash Flow
Eton Pharmaceuticals, Inc. generates strong free cash flow of $38.46M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.33 in free cash annually.
FCF Yield
ETON converts 1.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
38.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.004
vs 25 benchmark
P/B Ratio
Price to book value ratio
22.44
vs 25 benchmark
P/S Ratio
Price to sales ratio
13.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.05
vs 25 benchmark
ROA
Return on assets percentage
0.32
vs 25 benchmark
ROCE
Return on capital employed
0.39
vs 25 benchmark
How ETON Stacks Against Its Sector Peers
| Metric | ETON Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 38.55 | 31.66 | Worse (Expensive) |
| ROE | 104.82% | 501.00% | Weak |
| Net Margin | 35.35% | -3647.00% (disorted) | Strong |
| Debt/Equity | 0.28 | -0.30 (disorted) | Distorted |
| Current Ratio | 1.79 | 5.78 | Neutral |
| ROA | 31.71% | -262.00% (disorted) | Strong |
ETON outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Eton Pharmaceuticals, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
159965.78%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
87.16%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
136.77%
Industry Style: Defensive, Growth, Innovation
High Growth