Cumberland Pharmaceuticals (CPIX) AI Stock Analysis

• Market Cap: $65.96M
• Dividend Yield: N/A
• Average Volume (3M): 27.29K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.31
• 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: 0.67
• 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: 55 Neutral
• Price Target: $4.50 ▲(2.74% Upside)

Cumberland Pharmaceuticals' overall score reflects significant challenges in financial performance and valuation, offset by positive earnings call sentiment and technical momentum. The strategic initiatives and international expansion provide a positive outlook, but profitability issues remain a concern.

Positive Factors

Strategic Partnership

The partnership with RedHill Biopharma for Talicia enhances Cumberland's product portfolio and market reach, potentially increasing long-term revenue through shared commercialization efforts.

International Expansion

Expanding into international markets like Saudi Arabia and Mexico diversifies revenue streams and reduces dependency on domestic sales, supporting sustainable growth.

Revenue Growth

Consistent revenue growth indicates strong product demand and effective sales strategies, contributing to the company's financial resilience and market position.

Negative Factors

Profitability Challenges

Ongoing negative profit margins highlight operational inefficiencies, which could hinder long-term profitability and require strategic cost management.

Increased Competition

Rising generic competition for Kristalose threatens market share and revenue, necessitating innovation and differentiation to maintain competitive advantage.

Revenue Decline

A declining revenue trend indicates potential market challenges and underscores the need for strategic initiatives to reverse the trend and drive growth.

Cumberland Pharmaceuticals Business Overview & Revenue Model

Company Description

Cumberland Pharmaceuticals Inc. (CPIX) is a specialty pharmaceutical company based in Nashville, Tennessee, focused on the development and commercialization of innovative and high-quality prescription products. The company primarily operates in the pharmaceutical sector, concentrating on the areas of pain management and hospital-based therapies. Its core products include Acetadote, a treatment for acetaminophen overdose, and Vaprisol, a therapy for hyponatremia, among others. Cumberland's mission is to deliver meaningful solutions for patients and healthcare providers through its specialized product offerings.

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: 4.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 4.38 is above the 20-day moving average (MA) of 2.66, above the 50-day MA of 2.75, and above the 200-day MA of 3.75, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 84.12 is Negative, neither overbought nor oversold. The STOCH value of 91.69 is Negative, 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	55 Neutral	$65.96M	-18.66	-13.08%	―	12.21%	69.91%
ASRT	53 Neutral	$69.30M	-2.33	-24.48%	―	9.21%	58.12%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
SCYX	46 Neutral	$26.31M	-1.14	-53.29%	―	-65.77%	38.61%
RMTI	44 Neutral	$33.46M	-5.29	-16.67%	―	-23.60%	-179.33%
IXHL	39 Underperform	$151.61M	-0.41	-114.52%	―	-86.05%	24.17%
KALA	31 Underperform	$6.68M	-0.10	―	―	―	52.39%

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.