Cumberland Pharmaceuticals Inc (CPIX) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

Cumberland Pharmaceuticals's price-to-book of 5.26 is above the Drugs median of 2.29.

Trading above fair value

The share price of $6.12 is above our fair value estimate of $3.52.

Margin of safety under 20%

The price is 73.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 2.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -1.1% over the last twelve months; the Drugs median is 8.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was -48.1% over the last twelve months and averaged -15.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -59.7%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Cumberland Pharmaceuticals's return on equity of -48.1% is above the Drugs median of -58.8%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -34.9% over the last twelve months, against a 5-year average of -12.5%.

Net margin above the industry

Cumberland Pharmaceuticals's net margin of -34.9% is above the Drugs median of -53.0%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest not well covered

Operating income covers interest expense -31.1 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.96 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.40; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Cumberland Pharmaceuticals paid dividends worth 24.5% of the share price over the last twelve months.

Yield above Treasuries

The 24.5% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Cumberland Pharmaceuticals yields 24.5%.

Dividend stability

Fewer than five years of dividend history.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.