China Pharma Holdings, Inc. (NYSE: CPHI)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001106644
Market Cap 3.98 Mn
P/B 0.48
P/E -1.25
P/S 0.98
ROIC (Qtr) -29.72
Div Yield % 0.00
Rev 1y % (Qtr) -31.26
Total Debt (Qtr) 3.57 Mn
Debt/Equity (Qtr) 0.43

About

Price action

Investment thesis

Bull case

  • Robust free cash flow of 156330 exceeds capital expenditure of 78415 by 1.99x, indicating strong organic growth funding capability.
  • Tangible assets of 7.03M provide exceptional 58.14x coverage of deferred revenue 120912, showing strong service capability backing.
  • Tangible assets of 7.03M provide robust 24.13x coverage of other current liabilities 291338, indicating strong asset backing.
  • R&D investment of 91407 represents healthy 0.76x of deferred revenue 120912, indicating strong future innovation pipeline.
  • Operating cash flow of 234745 provides strong 8.71x coverage of operating expenses 26959, showing operational efficiency.

Bear case

  • Operating cash flow of 234745 barely covers its investment activities of (404336), with a coverage ratio of -0.58, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 267625 against inventory of 1.65M, the 0.16 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Investment activities of (404336) provide weak support for R&D spending of 91407, which is -4.42x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of (3.08M) show weak coverage of depreciation charges of 1.45M, with a -2.12 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 156330 represents just -0.73x of debt issuance (214633), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 56.15 Bn 21.18 5.98 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 48.92 Bn 221.13 1.66 36.24 Bn
3 HLN Haleon plc 46.13 Bn 25.59 3.29 -
4 TEVA Teva Pharmaceutical Industries Ltd 35.27 Bn 49.54 2.10 17.07 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.76 Bn 17.11 6.95 0.00 Bn
6 VTRS Viatris Inc 14.87 Bn -4.03 1.05 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.08 Bn 32.91 5.25 0.43 Bn
8 ELAN Elanco Animal Health Inc 11.64 Bn 323.29 2.54 4.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.43 24.98
EV to Cash from Ops. EV/CFO 28.88 -85.40
EV to Debt EV to Debt 1.90 265.88
EV to EBIT EV/EBIT -2.20 -32.65
EV to EBITDA EV/EBITDA -3.81 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF 43.37 -32.62
EV to Market Cap EV to Market Cap 1.70 -10.98
EV to Revenue EV/Rev 1.67 -700.14
Price to Book Value [P/B] P/B 0.48 27.22
Price to Earnings [P/E] P/E -1.25 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.08
Interest Coverage Int. cover (Qtr) -28.22 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -235.21 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -62.76 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 32.58 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -4.04 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 32.58 37.66
EBT Growth (1y) % EBT 1y % (Qtr) 32.76 108.18
EPS Growth (1y) % EPS 1y % (Qtr) 60.57 52.88
FCF Growth (1y) % FCF 1y % (Qtr) 120.83 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 76.72 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.26 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.04 2.10
Current Ratio Curr Ratio (Qtr) 0.35 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.43 -1.11
Interest Cover Ratio Int Coverage (Qtr) -28.22 -38.10
Times Interest Earned Times Interest Earned (Qtr) -28.22 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -40.10 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) -76.02 -63,260.88
EBT Margin % EBT Margin % (Qtr) -78.72 -66,726.96
Gross Margin % Gross Margin % (Qtr) -10.90 8,332.72
Net Profit Margin % Net Margin % (Qtr) -78.70 -66,728.37