Elite Pharmaceuticals (ELTP) AI Stock Analysis

• Market Cap: $436.18M
• Dividend Yield: N/A
• Average Volume (3M): 951.20K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 1.55
• Revenue Growth: 72.67%
• EPS Growth: N/A
• Country: US
• Employees: 64
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): <0.01
• Shares Outstanding: 1,076,996,500
• 10 Day Avg. Volume: 753,540
• 30 Day Avg. Volume: 951,200
• PEG Ratio: 0.90
• Price to Book (P/B): 8.68
• Price to Sales (P/S): 5.53
• P/FCF Ratio: 94.25
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 3.01
• Enterprise Value/Gross Profit: 5.89
• Enterprise Value/Ebitda: 9.20
• 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: 71 Outperform
• Price Target: $0.45 ▼(-4.26% Downside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is driven primarily by strong current financial performance (high margins, low leverage, positive free cash flow) and upbeat earnings-call fundamentals with rapid revenue/profit growth. These positives are tempered by weak technicals (downtrend and bearish momentum) and only moderate valuation support (P/E ~18.7 with no dividend yield provided).

Positive Factors

High margins and strong profitability

Sustained high gross and net margins provide durable internal cash generation, supporting reinvestment in R&D, manufacturing scale and new launches. Strong margins also create a buffer against pricing pressure, improving the firm’s ability to fund growth without heavy external financing.

Very low leverage and solid balance sheet

Extremely low debt affords financial flexibility to fund launches, absorb regulatory or market shocks, and invest in capacity. A strong equity base and improved working capital reduce refinancing risk and enable strategic partnerships or licensing without near-term liquidity stress.

Niche product market share and advancing pipeline

Established share in niche oral dose generics and a pipeline of ER launches create structural competitive advantage. Manufacturing capability and product mix raise switching costs for customers and support recurring sales, making growth less reliant on single-product, short-term demand spikes.

Negative Factors

Price competition and DEA quota changes

Industry-wide quota relaxations and expanding generic supply materially intensify price competition for core products. For a specialty generics player, this structural increase in competitor supply can compress margins and market share over the medium term, challenging sustainable profitability.

Historical earnings and cash-flow volatility

Notable swings in revenue, net income and cash flow across recent years reduce predictability of free cash flow and returns. This variability complicates capital allocation, forecasting and investment decisions, raising execution risk for multi-quarter launch plans and partnerships.

Rising G&A and compliance costs

Growing fixed overhead from G&A and compliance can structurally depress incremental margins as revenue scales, especially in a low-price environment. Persistent higher administrative and regulatory expenses reduce free cash flow conversion and constrain funds available for R&D or capacity expansion.

Elite Pharmaceuticals Business Overview & Revenue Model

Company Description

Elite Pharmaceuticals, Inc., a specialty pharmaceutical company, engages in the development and manufacture of oral, controlled-release products and generic pharmaceuticals. The company operates in two segments, Abbreviated New Drug Applications for Generic Products and New Drug Applications for Branded Products. It owns, licenses, and contract manufactures various generic and oral dose pharmaceuticals products, such as Phentermine HCl 37.5mg tablets for the treatment of bariatrics under Adipex-P brand; Phendimetrazine Tartrate 35mg tablets for bariatrics under the Bontril brand; Naltrexone HCl 50mg tablets for the treatment of pains under the Revia brand; and Isradipine 2.5mg and 5mg capsules for cardiovascular diseases. The company also provides Oxycodone HCl immediate release 5mg, 10mg, 15mg, 20mg, and 30mg tablets for pains under Roxycodone brand; Trimipramine Maleate Immediate Release antidepressant capsules under the Surmontil brand; Dextroamphetamine Saccharate, Amphetamine Aspartate, Dextroamphetamine Sulfate, and Amphetamine Sulfate Immediate Release tablets for central nervous system diseases under the Adderall brand, as well as Dantrolene Sodium capsules for muscle relaxant under the Dantrium brand; SequestOX, an immediate release Oxycodone with Naltrexone; Loxapine Succinate capsules for treating antipsychotic under the brand Loxapine; Acetaminophen and Codeine Phosphate for the management of mild to moderate pain; and antibiotic products. In addition, it manufactures controlled-release products on a contract basis for third parties in the areas of pain, allergy, bariatric, and infection. Further, the company is developing a range of abuse deterrent opioid products. The company was incorporated in 1997 and is headquartered in Northvale, New Jersey.

How the Company Makes Money

Elite Pharmaceuticals generates revenue through multiple streams, including the sale of its proprietary and generic prescription products. The company earns money from product sales following the approval and commercialization of its formulations. Additionally, Elite Pharmaceuticals engages in partnerships and licensing agreements with larger pharmaceutical companies, allowing it to leverage their distribution networks and marketing capabilities. These collaborations often include milestone payments and royalties based on product sales, contributing significantly to its revenue. The company's focus on developing complex drug delivery systems enhances its competitive advantage and can lead to higher profit margins compared to standard generic drugs.

Elite Pharmaceuticals Financial Statement Overview

Summary

TTM profitability and margins are strong (gross margin ~51%, net margin ~31%) with revenue up ~14%, supported by very low leverage (debt-to-equity ~0.04). Free cash flow is positive and close to net income (~0.93x), but cash flow declined year-over-year and historical results show volatility (including FY2025 weakness and anomalous FY2023 figures), lowering confidence in durability.

Income Statement

TTM (Trailing-Twelve-Months) results are strong, with revenue up ~14% and robust profitability (gross margin ~51%, net margin ~31%, EBIT margin ~25%). This is a clear improvement versus FY2025, which showed a net loss and much weaker operating profitability. The main watch-out is historical volatility in reported results (including an anomalously large FY2023 revenue figure), which reduces confidence in the smoothness of the earnings trajectory despite the current strength.

Balance Sheet

Balance sheet leverage is very low in TTM (Trailing-Twelve-Months), with debt-to-equity around 0.04 and equity (~$80M) supporting a solid asset base (~$126M). Profitability on equity is strong in TTM (ROE ~28%), and leverage has improved meaningfully versus FY2024–FY2025 (debt-to-equity ~0.20). The key risk is variability in ROE across years (including negative ROE in FY2025 and an extreme FY2023 reading), suggesting reported returns have not been consistently stable.

Cash Flow

TTM (Trailing-Twelve-Months) cash generation is positive (operating cash flow ~$18.5M; free cash flow ~$17.2M) and free cash flow is close to net income (~0.93x), which supports earnings quality. However, free cash flow declined ~20% year-over-year, and earlier periods show notable inconsistency (including negative operating and free cash flow in FY2024). Cash flow coverage of earnings is healthy in TTM, but the trend and volatility keep the score below the income statement and balance sheet.

Breakdown	TTM	Jun 2025	Jun 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	140.12M	84.04M	56.63M	34.16B	32.26M	25.38M
Gross Profit	71.55M	40.09M	26.36M	16.59B	14.80M	11.87M
EBITDA	45.77M	2.84M	2.52M	6.43M	6.49M	3.63M
Net Income	43.41M	-4.31M	20.11M	4.41B	8.90M	5.09M
Balance Sheet
Total Assets	126.41M	96.39M	83.65M	40.90M	35.15M	26.19M
Cash, Cash Equivalents and Short-Term Investments	21.09M	11.32M	7.11M	7.83M	8.54M	3.19M
Total Debt	7.21M	10.91M	11.74M	3.89M	2.78M	2.38M
Total Liabilities	46.10M	42.87M	26.07M	11.94M	9.93M	10.04M
Stockholders Equity	80.31M	53.52M	57.58M	28.96M	25.22M	16.15M
Cash Flow
Free Cash Flow	17.24M	4.93M	-4.09M	-2.40M	6.01M	2.86M
Operating Cash Flow	18.52M	7.46M	-3.28M	3.34M	6.51M	3.19M
Investing Cash Flow	-1.28M	-2.40M	-809.65K	-5.74M	-498.57K	-262.78K
Financing Cash Flow	-4.42M	-825.74K	3.39M	1.70M	-667.13K	-869.83K

Elite Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELTP, the sentiment is Negative. The current price of 0.47 is above the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.45, and below the 200-day MA of 0.56, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 43.38 is Neutral, neither overbought nor oversold. The STOCH value of 34.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELTP.

Elite Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMPH	79 Outperform	$1.27B	12.40	14.84%	―	-0.03%	-27.66%
SIGA	77 Outperform	$484.09M	6.53	39.94%	―	-0.85%	-13.50%
ELTP	71 Outperform	$436.18M	18.49	25.58%	―	72.67%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ORGO	47 Neutral	$511.46M	-41.90	0.30%	―	2.24%	-67.56%
AQST	44 Neutral	$498.99M	-5.89	―	―	-26.32%	-56.54%

Elite Pharmaceuticals Corporate Events

Elite Pharmaceuticals Delivers Strong Fiscal Q3 2026 Results

Elite Pharmaceuticals reported strong financial performance for its third quarter of fiscal 2026, covering the three months ended Dec. 31, 2025, highlighted by a sharp jump in revenue and profitability. Consolidated revenues reached $31.6 million, up approximately 120% from the prior-year period, while income from operations climbed to $9.0 million, about a 721% increase, and net income came in at $18.6 million.

The surge in results was driven largely by sales of newly launched lisdexamfetamine and naltrexone products, alongside robust growth across the Elite label product lines compared with the same quarter a year earlier. The performance underscores Elite’s growing traction in its targeted niche generics portfolio, suggesting an improving earnings profile and potentially stronger positioning within the competitive generic pharmaceuticals market.

The most recent analyst rating on (ELTP) stock is a Hold with a $0.47 price target. To see the full list of analyst forecasts on Elite Pharmaceuticals stock, see the ELTP Stock Forecast page.

Elite Pharmaceuticals Schedules Q3 Fiscal 2026 Results Call

Elite Pharmaceuticals, Inc., a specialty generics developer based in Northvale, N.J., focuses on immediate-release and controlled-release solid oral dose products, which it markets under its Elite Laboratories label and through licensed third-party distributors. The company operates a cGMP- and DEA-registered facility dedicated to research, development, and manufacturing of these niche generic pharmaceutical products.

On February 11, 2026, Elite announced it would release financial results for the third quarter of its 2026 fiscal year, ended December 31, 2025, on February 17, 2026. Management plans to host a live conference call on February 18, 2026, at 11:30 a.m. EST to discuss financial and operating performance and to provide a corporate update, signaling ongoing engagement with investors and a focus on transparency around business progress.

Stockholders were invited to submit general and financial questions ahead of the February 18 call, indicating an effort to structure the discussion around investor priorities. An audio replay of the event will be made available online, extending access to stakeholders who cannot participate live and supporting broader dissemination of the company’s financial and strategic messaging.

The most recent analyst rating on (ELTP) stock is a Buy with a $0.42 price target. To see the full list of analyst forecasts on Elite Pharmaceuticals stock, see the ELTP Stock Forecast page.