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Eton Pharmaceuticals, Inc. (ETON) stock analysis

ETONNasdaqPharmaceutical PreparationsFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 5, 2026Score 12/30104% above fair value
$61.45−6.95 (-10.16%)

Close on Nov 12, 2026Market cap $1.76BP/E 40.4Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value0Growth4Performance4Health4Dividend0

Mixed12 of 30 checks passed

Eton Pharmaceuticals passes 12 of the 30 checks behind our score; 12 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
0/6
Growth
4/6
Past performance
4/6
Financial health
4/6
Dividend
0/6

What stands out

  • Return on capital over 10%

    Return on invested capital was 115%, above the 10% that usually covers the cost of capital.

  • Low debt

    Debt is 26.5% of shareholders' equity, under the 40% we consider low.

  • Revenue growing 10%+ a year

    Revenue grew 55.5% a year over the last three fiscal years.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 166% of total debt.

What to watch

  • Margin of safety under 20%

    The price is 104% above fair value, so there is no margin of safety.

  • Trading above fair value

    The share price of $68.40 is above our fair value estimate of $33.60.

  • Return on equity under 15%

    Return on equity was 90.6% over the last twelve months and averaged -22.8% over five years; we look for 15% on both.

  • P/E above the industry

    Eton Pharmaceuticals's P/E of 45.0 is above the Drugs median of 25.1.

Valuation0/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E above the industry

    Eton Pharmaceuticals's P/E of 45.0 is above the Drugs median of 25.1.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B above the industry

    Eton Pharmaceuticals's price-to-book of 22.49 is above the Drugs median of 2.29.

  • Trading above fair value

    The share price of $68.40 is above our fair value estimate of $33.60.

  • Margin of safety under 20%

    The price is 104% above fair value, so there is no margin of safety.

Growth4/6

  • Revenue growing 10%+ a year

    Revenue grew 55.5% a year over the last three fiscal years.

  • 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 faster than the industry

    Revenue grew 101% over the last twelve months; the Drugs median is 8.0%.

  • Guidance raised

    Eton Pharmaceuticals raised its 2026 revenue outlook on Aug 13, 2026.

  • Gross margin improving

    Gross margin was 69.2% over the last twelve months, against 51.4% a year earlier.

Past performance4/6

  • Return on equity under 15%

    Return on equity was 90.6% over the last twelve months and averaged -22.8% over five years; we look for 15% on both.

  • Return on capital over 10%

    Return on invested capital was 115%, above the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    Eton Pharmaceuticals's return on equity of 90.6% is above the Drugs median of -58.9%.

  • Earnings over 5 years

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

  • Net margin above its 5-year average

    Net margin was 35.3% over the last twelve months, against a 5-year average of -14.0%.

  • Net margin above the industry

    Eton Pharmaceuticals's net margin of 35.3% is above the Drugs median of -53.0%.

Financial health4/6

  • Low debt

    Debt is 26.5% of shareholders' equity, under the 40% we consider low.

  • Debt trend

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

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 166% of total debt.

  • Interest coverage

    Interest expense is not reported separately.

  • Short-term assets cover short-term debts

    Current assets are 1.79 times current liabilities.

  • Low bankruptcy risk

    The Altman Z-score is 18.18; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Eton Pharmaceuticals has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$33.60

The share price is 104% above this estimate.

20%+ below
Near fair value
20%+ above
$68.40Price$33.60Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E25.1×–25.1×$38.1353%
EV/EBITDA17.1×–17.1×$28.4347%
Earnings powerleft out, too far from the others9.3% cost of equity––$2.25–
Fair value$33.60100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • EV/EBITDA at month end
  • Drugs median 17.1

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$32.00M
Value traded per 1% price move
$12.36M

Downside

Low risk

Typical loss in a bad month
13.9%
Volatility (annualized)
74%
Sharpe ratio, 1 year
4.04
Beta to the S&P 500 (5Y)
0.89

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2017 to 2025

Gross margin

53.5%+1071.4 pts over 5 years

Operating margin

-1.1%+69514.3 pts over 5 years

Net margin

-5.8%+71712.2 pts over 5 years

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