Cumberland Pharmaceuticals (CPIX) AI Stock Analysis

• Market Cap: $72.99M
• Dividend Yield: N/A
• Average Volume (3M): 27.29K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.12
• Revenue Growth: 12.21%
• EPS Growth: 69.91%
• Country: US
• Employees: 91
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.13
• Shares Outstanding: 14,956,627
• 10 Day Avg. Volume: 30,352
• 30 Day Avg. Volume: 27,288
• PEG Ratio: -1.13
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.88
• P/FCF Ratio: -42.08
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 1.07
• Enterprise Value/Gross Profit: 1.26
• Enterprise Value/Ebitda: 16.42
• 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: 53 Neutral
• Price Target: $5.50 ▲(16.53% Upside)

The score is held back primarily by weak profitability and declining TTM revenue despite strong gross margins, with valuation also constrained by negative earnings (negative P/E). Partially offsetting this are improving leverage and positive operating cash flow, plus favorable earnings-call developments (Talicia partnership, international progress, and YTD revenue growth). Technically, momentum is strong but appears overheated, which tempers the upside.

Positive Factors

High gross margins

Sustained gross margins near 84.5% indicate strong product-level pricing and low COGS, reflecting patent protection or specialty formulations. This margin cushion supports durable cash generation and provides flexibility to fund SG&A, R&D, or partnership investments over the next 2–6 months.

Improved leverage and positive operating cash flow

Material reduction in leverage (D/E to 0.39) combined with positive operating cash flow enhances financial flexibility and reduces refinancing risk. This stronger balance-sheet posture supports continued commercial investments and clinical programs without immediate reliance on external capital.

Strategic partnership expanding product portfolio

The RedHill JV to commercialize Talicia structurally diversifies revenue and leverages Cumberland’s sales force. Talicia’s guideline positioning and patent protection extend the company’s commercial runway, creating a durable revenue stream and reducing single-product concentration risk.

Negative Factors

Declining TTM revenue trend

A negative TTM revenue trend indicates persistent top-line pressure that impairs scale economics and makes fixed-cost absorption harder. Even with recent YTD gains, sustained revenue decline over trailing periods risks margin recovery and constrains investment capacity.

Negative profitability and returns

Consistent negative net and operating margins mean the business is not yet converting high gross margins into profitable operations. Negative ROE and operating losses limit internal funding for growth and increase dependence on cash generation or external financing to reach durable profitability.

Competitive pressure and supply disruptions

Generic substitution and shipment delays are structural operational risks that erode market share and reliability with hospital/pharmacy customers. Persistent competition and supply hiccups can depress long-term revenue visibility and require higher commercial or logistics spending to defend share.

Cumberland Pharmaceuticals Business Overview & Revenue Model

Company Description

Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, focuses on the acquisition, development, and commercialization of prescription products for hospital acute care, gastroenterology, rheumatology, and oncology in the United States and internationally. The company offers Acetadote, an injection for the treatment of acetaminophen poisoning; Caldolor, an injection for the treatment of pain and fever; Kristalose, a prescription laxative oral solution for the treatment of chronic and acute constipation; Omeclamox-Pak for the treatment of Helicobacter pylori infection and duodenal ulcer disease; Vaprisol, an injection for treating euvolemic and hypervolemic hyponatremia; and Vibativ, an injection for the treatment of certain serious bacterial infections, including hospital-acquired and ventilator-associated bacterial pneumonia, as well as complicated skin and skin structure infections. It also develops RediTrex injection for the treatment of active rheumatoid, juvenile idiopathic, and severe psoriatic arthritis, as well as disabling psoriasis. In addition, the company is developing ifetroban, a product candidate that is in phase II clinical trial for the treatment of aspirin-exacerbated respiratory disease, systemic sclerosis, and duchenne muscular dystrophy; and has completed phase II clinical trial for the treatment of hepatorenal syndrome and portal hypertension. Further, it develops a clinical program for the use of ifetroban to treat progressive fibrosing interstitial lung diseases; and a product candidate that is in Phase II clinical trial for cholesterol reducing agent to use in the hospital setting. The company was incorporated in 1999 and is headquartered in Nashville, Tennessee.

How the Company Makes Money

Cumberland Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products to hospitals, clinics, and healthcare providers. The company's revenue model is based on direct product sales, as well as collaborations and partnerships with other pharmaceutical companies for distribution and marketing of its products. Key revenue streams include sales from its flagship drugs like Acetadote and Vaprisol, along with royalties and licensing fees from its partnered products. Additionally, strategic partnerships with healthcare institutions and distributors help expand its market reach and enhance its sales capabilities, contributing to its overall earnings.

Cumberland Pharmaceuticals Financial Statement Overview

Summary

Cumberland Pharmaceuticals faces significant challenges in profitability and revenue growth, as evidenced by negative margins and declining revenues. While there is some improvement in leverage and cash flow metrics, the company needs to address operational inefficiencies and enhance profitability to achieve sustainable financial health.

Income Statement

Cumberland Pharmaceuticals shows a declining revenue trend with a negative revenue growth rate of -1.89% in the TTM. The company has consistently reported negative net profit margins, with the TTM net profit margin at -8.06%. Despite a strong gross profit margin of 84.49% in the TTM, the negative EBIT and EBITDA margins indicate operational inefficiencies and challenges in managing operating expenses.

Balance Sheet

The company's debt-to-equity ratio improved to 0.39 in the TTM from 0.90 in the previous year, indicating a reduction in leverage. However, the return on equity remains negative, reflecting ongoing profitability challenges. The equity ratio is relatively stable, suggesting a balanced asset structure, but the negative ROE highlights the need for improved profitability.

Cash Flow

Cumberland Pharmaceuticals has shown improvement in cash flow metrics, with a positive operating cash flow and a high free cash flow to net income ratio of 0.98 in the TTM. However, the free cash flow growth rate is negative, indicating potential challenges in sustaining cash flow generation. The operating cash flow to net income ratio of 0.28 suggests moderate cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.28M	37.87M	39.55M	42.01M	35.99M	37.44M
Gross Profit	34.88M	31.28M	33.49M	32.89M	27.17M	28.79M
EBITDA	2.68M	182.42K	2.49M	332.92K	-857.83K	-1.56M
Net Income	-3.33M	-6.48M	-6.28M	-5.57M	-3.51M	-3.34M
Balance Sheet
Total Assets	65.90M	75.58M	81.78M	92.93M	84.46M	96.46M
Cash, Cash Equivalents and Short-Term Investments	15.20M	17.96M	18.32M	19.76M	27.04M	24.75M
Total Debt	10.24M	20.57M	18.43M	20.96M	16.06M	19.26M
Total Liabilities	40.10M	53.04M	52.52M	56.95M	41.86M	49.59M
Stockholders Equity	26.12M	22.85M	29.60M	36.27M	42.81M	46.99M
Cash Flow
Free Cash Flow	6.71M	-791.90K	5.64M	6.38M	5.99M	3.30M
Operating Cash Flow	6.83M	-612.19K	6.09M	8.45M	6.34M	5.42M
Investing Cash Flow	-1.66M	57.84K	-105.69K	-13.67M	-501.89K	-1.76M
Financing Cash Flow	-7.44M	196.90K	-7.42M	-2.06M	-3.55M	-7.12M

Cumberland Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPIX, the sentiment is Positive. The current price of 4.72 is above the 20-day moving average (MA) of 4.36, above the 50-day MA of 3.08, and above the 200-day MA of 3.71, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 68.35 is Neutral, neither overbought nor oversold. The STOCH value of 61.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPIX.

Cumberland Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPIX	53 Neutral	$72.99M	-20.42	-13.08%	―	12.21%	69.91%
ASRT	53 Neutral	$65.52M	-2.36	-24.48%	―	9.21%	58.12%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IXHL	47 Neutral	$134.58M	-0.35	-114.52%	―	-86.05%	24.17%
SCYX	45 Neutral	$27.42M	-1.20	-53.29%	―	-65.77%	38.61%
KALA	44 Neutral	$17.62M	-0.10	―	―	―	52.39%
RMTI	42 Neutral	$37.73M	-5.96	-16.67%	―	-23.60%	-179.33%

Cumberland Pharmaceuticals Corporate Events

Cumberland Pharmaceuticals Partners with RedHill for Talicia

On October 20, 2025, Cumberland Pharmaceuticals announced a strategic partnership with RedHill Biopharma to jointly commercialize Talicia®, an FDA-approved treatment for Helicobacter pylori infection. This collaboration involves forming a new company where RedHill contributes Talicia assets and Cumberland invests $4 million, taking charge of distribution and sales. The agreement aims to leverage Cumberland’s sales force to enhance Talicia’s market presence, with both companies sharing revenues and operational responsibilities. Talicia, featuring high eradication rates and low resistance, is now a first-line treatment option in updated guidelines, with patent protection until 2042 and extensive insurance coverage in the U.S.

The most recent analyst rating on (CPIX) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on Cumberland Pharmaceuticals stock, see the CPIX Stock Forecast page.