China Pharma Holdings (CPHI) AI Stock Analysis

• Market Cap: $3.18M
• Dividend Yield: N/A
• Average Volume (3M): 41.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -26.92%
• EPS Growth: 69.90%
• Country: US
• Employees: 224
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 5,022,002
• 10 Day Avg. Volume: 15,303
• 30 Day Avg. Volume: 41,022
• PEG Ratio: 1.25
• Price to Book (P/B): 5.25
• Price to Sales (P/S): 8.98
• P/FCF Ratio: -53.68
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 1.31
• Enterprise Value/Gross Profit: -15.70
• Enterprise Value/Ebitda: -3.27
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $0.86 ▼(-34.55% Downside)

The score is held down primarily by very weak financial performance (large losses, extremely negative ROE, and negative cash flows) and bearish technicals (below major moving averages with negative MACD). Corporate actions provide some strategic positives (pipeline patents and capital-structure flexibility), but dilution/reverse-split risk and loss-making fundamentals keep the overall score low.

Positive Factors

Pipeline expansion via patent acquisitions

Acquiring the Ipragliflozin patent and bundled technical services materially expands the company’s proprietary drug pipeline and supports regulatory submissions. This lowers future external R&D spend needs, deepens product mix and improves long-term revenue potential if registration and commercialization succeed.

Governance and capital-structure flexibility

Electing independent directors and approving reverse-split authority plus LTIP amendments strengthens governance and gives management tools to address listing, dilution and compensation alignment. These structural changes improve oversight and strategic flexibility over multiple quarters.

Moderate leverage on balance sheet

A debt-to-equity ratio around 0.53 indicates moderate leverage, leaving capacity to raise additional capital via debt if needed. For a R&D-driven pharma, lower relative leverage reduces fixed interest burden and preserves flexibility to fund clinical development or manufacturing scale-up.

Negative Factors

Deeply negative profitability and margins

Persistently negative gross and net margins show the business is not converting sales into sustainable profit. Structural cost or pricing issues and operational inefficiencies will need multi-quarter remediation—otherwise the firm risks continued losses that undermine reinvestment in the pipeline.

Extremely negative return on equity

An ROE massively below zero signals severe shareholder equity erosion from recurring losses. This level of capital destruction impairs credibility with investors and creditors, constrains financing options, and indicates the company must materially improve profitability to restore long-term solvency.

Negative operating and free cash flow

Very weak operating and free cash flows, and an extremely negative FCF growth metric, show the company cannot self-fund operations or R&D. Reliance on equity issuances to pay for assets highlights persistent cash burn and creates dilution risk that can hinder long-term execution and investment capacity.

China Pharma Holdings Business Overview & Revenue Model

Company Description

China Pharma Holdings, Inc. develops, manufactures, and markets generic and branded pharmaceutical, and biochemical products primarily to hospitals and private retailers in the People's Republic of China. The company offers products in the form of dry powder injectables, liquid injectables, tablets, capsules, and cephalosporin oral solutions. Its products include Cerebroprotein Hydroloysate injection to treat memory decline and attention deficit; Gastrodin injection for tiredness, loss of concentration, poor sleep, and traumatic syndromes of the brain; Propylgallate and Ozagrel Sodium to treat cerebral thrombosis, coronary heart disease, and after surgery complications; Alginic Sodium Diester injection for ischemic heart, cerebrovascular, and high lipoprotein blood diseases; Bumetanide injection to treat edema diseases; and Candesartan for hypertension. It also provides Roxithromycin dispersible tablets for pharyngitis and tonsillitis; Cefaclor dispersible tablets for tympanitis, lower respiratory tract infection, urinary tract infections, and skin/skin tissue infection; Cefalexin capsules for acute tonsillitis; Andrographolide for sore throat caused by upper respiratory tract infection; Clarithromycin granules and capsules; and Naproxen Sodium and PseudophedrineHydrochlorida sustained release tablets. In addition, the company offers Hepatocyte growth-promoting factor, Tiopronin, Compound Ammonium Glycyrrhetate S, and Omeparzole for the treatment of digestive diseases. Further, it provides Vitamin B6 injection; Granisetron Hydrochloride injection to treat nausea and vomiting caused by radiotherapy and chemotherapy during the treatment of malignant tumors; Noni Enzyme, a food supplement; sanitizers; and masks. The company offers its products through distributors, as well as through its network of 16 sales offices and approximately 1,000 sales representatives. China Pharma Holdings, Inc. was founded in 1993 and is based in Haikou, the People's Republic of China.

How the Company Makes Money

China Pharma Holdings generates revenue through the sale of its pharmaceutical products, which include both prescription medications and over-the-counter drugs. The company's primary revenue streams stem from the sale of its proprietary drugs, which are developed in-house, as well as from partnerships with other pharmaceutical firms for the licensing and distribution of generic medications. Additionally, CPHI may benefit from government contracts and subsidies aimed at boosting local pharmaceutical production and innovation. The company also looks to expand its market presence through strategic collaborations and joint ventures, which can enhance its distribution capabilities and market reach.

China Pharma Holdings Financial Statement Overview

Summary

Financials are weak: deeply negative profitability (TTM gross margin -11.97%, net margin -69.14%), extremely negative ROE (-113,408.71%), and negative operating/free cash flow with very poor cash flow trends. Revenue growth is positive (66.55% TTM) and leverage is moderate (debt-to-equity 0.53), but losses and cash burn dominate.

Income Statement

The income statement shows significant challenges with negative margins across the board. The TTM data indicates a gross profit margin of -11.97% and a net profit margin of -69.14%, reflecting substantial losses. Revenue growth is positive at 66.55% TTM, but this is overshadowed by the negative profitability metrics. The company is struggling to convert revenue into profit, indicating operational inefficiencies.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.53 TTM, which is a positive aspect. However, the return on equity is extremely negative at -113,408.71% TTM, indicating severe losses relative to shareholder equity. The equity ratio is not explicitly calculated, but the high negative ROE suggests significant financial instability.

Cash Flow

Cash flow analysis shows negative operating and free cash flows, with a free cash flow growth rate of -89,093,826.35% TTM, indicating worsening cash flow conditions. The operating cash flow to net income ratio is low at 0.08 TTM, suggesting poor cash generation relative to net losses. The free cash flow to net income ratio is slightly better at 0.17 TTM, but still reflects financial distress.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Dec 2020
Income Statement
Total Revenue	4.05M	4.53M	7.01M	8.10M	9.64M	10.87M
Gross Profit	-338.39K	-1.99M	-281.08K	-493.92K	349.27K	1.95M
EBITDA	-1.63M	-1.96M	8.44K	-837.69K	230.34K	106.85K
Net Income	-3.19M	-4.74M	-3.08M	-3.97M	-3.40M	-2.87M
Balance Sheet
Total Assets	15.98M	14.89M	16.47M	17.78M	22.65M	21.12M
Cash, Cash Equivalents and Short-Term Investments	294.32K	626.88K	1.42M	2.03M	4.86M	957.65K
Total Debt	3.57M	3.59M	4.63M	8.76M	12.49M	7.43M
Total Liabilities	7.49M	7.14M	9.01M	13.49M	16.63M	13.11M
Stockholders Equity	8.49M	7.75M	7.45M	4.29M	6.02M	8.00M
Cash Flow
Free Cash Flow	-129.61K	-758.08K	-711.20K	-811.51K	-687.89K	-909.57K
Operating Cash Flow	234.75K	-466.36K	-699.69K	-409.55K	-249.84K	-42.26K
Investing Cash Flow	-404.34K	-291.72K	-11.52K	-401.96K	-438.06K	-867.31K
Financing Cash Flow	-214.63K	27.35K	73.14K	-1.77M	4.60M	624.18K

China Pharma Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPHI, the sentiment is Negative. The current price of 1.32 is above the 20-day moving average (MA) of 0.98, above the 50-day MA of 1.24, and below the 200-day MA of 1.63, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 21.30 is Positive, neither overbought nor oversold. The STOCH value of 3.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPHI.

China Pharma Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
UPC	46 Neutral	$1.61M	-0.28	2.66%	―	-27.81%	―
SNOA	44 Neutral	$4.76M	-1.35	-76.14%	―	25.02%	55.11%
SBFM	44 Neutral	$5.74M	-0.63	-24.34%	―	13.24%	98.80%
CPHI	42 Neutral	$3.18M	-0.61	-42.47%	―	-26.92%	69.90%

China Pharma Holdings Corporate Events

China Pharma stockholders approve reverse split, governance changes

At its annual stockholders’ meeting held on December 30, 2025 for the fiscal year ended December 31, 2024, China Pharma Holdings, Inc. reported that approximately 69.71% of its outstanding common shares were represented, constituting a valid quorum for conducting corporate business. Shareholders elected three independent directors—Gene Michael Bennett, Yingwen Zhang and Baowen Dong—to serve until the next annual meeting, approved an amendment to the Articles of Incorporation authorizing a reverse stock split at a ratio of up to 1-for-20 at the board’s discretion, and adopted Amendment No. 3 to the company’s Amended and Restated 2010 Long-Term Incentive Plan, decisions that collectively reinforce the company’s governance structure, provide flexibility to manage its capital structure, and adjust its long-term equity compensation framework for employees and directors.

The most recent analyst rating on (CPHI) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on China Pharma Holdings stock, see the CPHI Stock Forecast page.

China Pharma Acquires Ipragliflozin Patent via Stock Issuance

On December 22, 2025, Hainan Helpson Medical & Biotechnology Co., Ltd., a wholly owned subsidiary of China Pharma Holdings, entered into a Technology Transfer Agreement with patent holder Juan Zhang to acquire full ownership of an invention patent covering Ipragliflozin tablets and their preparation method. As part of the deal, the transferor or a designated third party will provide a suite of technical services, including product research and development and preparation and submission of registration materials, underscoring China Pharma’s efforts to expand its drug portfolio. The $9.8 million purchase price will be paid in China Pharma common stock valued at $1.40 per share, resulting in the planned issuance of 7,000,000 restricted shares to a non-U.S. person in an offshore transaction exempt from U.S. securities registration requirements, a move that both conserves cash and potentially dilutes existing shareholders while supporting the company’s pipeline development.

The most recent analyst rating on (CPHI) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on China Pharma Holdings stock, see the CPHI Stock Forecast page.

China Pharma Holdings Acquires Patent in Stock Deal

On December 4, 2025, China Pharma Holdings‘ subsidiary, Hainan Helpson Medical & Biotechnology Co., Ltd, entered into a Technology Transfer Agreement with Lijie Tang for the acquisition of an invention patent on Captopril microcapsules. The transfer, valued at $6.3 million, will be compensated through the issuance of 3,500,000 shares of the company’s common stock, highlighting a strategic move to enhance its pharmaceutical offerings.

The most recent analyst rating on (CPHI) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on China Pharma Holdings stock, see the CPHI Stock Forecast page.