Cumberland Pharmaceuticals Inc (NASDAQ: CPIX)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001087294
Market Cap 55.19 Mn
P/B 2.11
P/E -16.58
P/S 1.34
ROIC (Qtr) -8.76
Div Yield % 0.00
Rev 1y % (Qtr) -8.73
Total Debt (Qtr) 10.24 Mn
Debt/Equity (Qtr) 0.39

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 6.83M provides robust 0.67x coverage of total debt 10.24M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 15.20M provide 37.86x coverage of short-term debt 401445, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 49.97M provides 4.88x coverage of total debt 10.24M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 6.83M provides strong 21.98x coverage of stock compensation 310972, indicating sustainable incentive practices.
  • Operating cash flow of 6.83M provides exceptional 11.27x coverage of interest expenses 606309, showing strong debt service capability.

Bear case

  • Operating cash flow of 6.83M barely covers its investment activities of (1.66M), with a coverage ratio of -4.12, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (1.66M) provide weak support for R&D spending of 5.31M, which is -0.31x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 6.83M provides minimal -170.92x coverage of tax expenses of (39985), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (2.76M) show weak coverage of depreciation charges of 5.74M, with a -0.48 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 5.22M represents just -0.48x of debt issuance (10.85M), 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 0.75 24.98
EV to Cash from Ops. EV/CFO 7.24 -85.40
EV to Debt EV to Debt 4.83 265.88
EV to EBIT EV/EBIT -17.90 -32.65
EV to EBITDA EV/EBITDA 19.96 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF 9.47 -32.62
EV to Market Cap EV to Market Cap 0.90 -10.98
EV to Revenue EV/Rev 1.20 -700.14
Price to Book Value [P/B] P/B 2.11 27.22
Price to Earnings [P/E] P/E -16.58 -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) -4.56 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -573.13 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -12.99 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 73.52 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 148.12 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 73.05 37.66
EBT Growth (1y) % EBT 1y % (Qtr) 68.84 108.18
EPS Growth (1y) % EPS 1y % (Qtr) 68.83 52.88
FCF Growth (1y) % FCF 1y % (Qtr) 404.21 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 13.80 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.63 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.63 2.10
Current Ratio Curr Ratio (Qtr) 1.23 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.39 -1.11
Interest Cover Ratio Int Coverage (Qtr) -4.56 -38.10
Times Interest Earned Times Interest Earned (Qtr) -4.56 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.20 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) -6.69 -63,260.88
EBT Margin % EBT Margin % (Qtr) -8.16 -66,726.96
Gross Margin % Gross Margin % (Qtr) 84.50 8,332.72
Net Profit Margin % Net Margin % (Qtr) -8.10 -66,728.37