Eton Pharmaceuticals (ETON) AI Stock Analysis

• Market Cap: $423.45M
• Dividend Yield: N/A
• Average Volume (3M): 254.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: 23.29%
• EPS Growth: -309.12%
• Country: US
• Employees: 31
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -0.15
• Shares Outstanding: 26,817,535
• 10 Day Avg. Volume: 254,263
• 30 Day Avg. Volume: 254,082
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 9.78
• Price to Cash Flow (P/CF): -124.60
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $28.00
• Price Target Upside: 76.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

Eton Pharmaceuticals presents a mixed picture. Strong revenue growth and strategic acquisitions provide a positive outlook, but profitability and high SG&A expenses remain concerns. While technical indicators suggest potential upward momentum, the negative P/E ratio and lack of dividends detract from the stock's valuation appeal. Overall, the stock shows promise but also significant risks that need careful consideration.

Positive Factors

Financial Performance

Eton Pharmaceuticals has reported 16 sequential quarters of growth, with a 4Q top-line beat and 12% sequential growth.

Product Launch

Eton Pharmaceuticals is on track to launch ET-400, a hydrocortisone oral solution, expected to address issues with the current granule texture and drive robust adoption.

Revenue Growth

Multiple high-margin products like Increlex and ET-400 are expected to become key contributors to total revenue growth.

Negative Factors

Market Challenges

The 3-month PDUFA delay is unrelated to clinical or manufacturing issues, which suggests no significant setbacks for Eton Pharmaceuticals.

Operational Execution

The reaffirmation of Galzin's re-launch strategy and ET-400 guidance suggests continued readiness for the market, minimizing the impact of the launch delay.

Eton Pharmaceuticals Business Overview & Revenue Model

Company Description

Eton Pharmaceuticals, Inc. is a specialized pharmaceutical company focused on developing and commercializing innovative treatments for rare diseases and niche therapeutic areas. The company operates in the healthcare sector, with a core emphasis on the development and distribution of prescription medications. Eton Pharmaceuticals aims to address unmet medical needs by bringing novel and effective treatments to market, with a portfolio that includes proprietary and licensed products designed to enhance patient outcomes.

How the Company Makes Money

Eton Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products. The company's revenue model is centered around the commercialization of its proprietary and licensed drugs, which are often developed for specific patient populations with rare or difficult-to-treat conditions. Eton partners with healthcare providers, pharmacies, and distributors to ensure its products reach the intended market. Additionally, the company may engage in strategic partnerships and licensing agreements with other pharmaceutical companies to expand its product offerings and distribution network. These collaborations can provide upfront payments, milestone payments, and royalties, contributing to the company's overall earnings.

Eton Pharmaceuticals Financial Statement Overview

Summary

Eton Pharmaceuticals shows promising revenue growth but struggles with profitability. Balance sheet stability is supported by low leverage, yet the high liabilities are a risk. Cash flow management has improved, but further efforts are needed to convert earnings into cash. Overall, the financial outlook is mixed, with positive trends in revenue but challenges in profitability and financial flexibility.

Income Statement

Eton Pharmaceuticals has shown significant revenue growth, with a notable increase from $21.3 million in 2022 to $39 million in 2024. However, profitability remains a concern as indicated by negative EBIT and net income, which suggests challenges in cost management or market competition.

Balance Sheet

The balance sheet reveals a relatively stable equity base, with stockholders' equity increasing to $24.4 million in 2024. The debt-to-equity ratio is low, indicating low leverage, but the company faces high liabilities compared to assets, which may impact future financial flexibility.

Cash Flow

Positive free cash flow in 2024, at $943,000, marks an improvement compared to previous years, suggesting better cash management. However, the operating cash flow to net income ratio is low, indicating that net income is not translating effectively into cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
39.01M	31.64M	21.25M	21.83M	39.00K
	Gross Profit
23.41M	21.06M	14.32M	19.21M	-247.00K
	EBIT
-2.60M	-1.19M	-8.26M	-1.50M	-27.11M
	EBITDA
-2.60M	-291.00K	-6.49M	-1.12M	-26.46M
	Net Income Common Stockholders
-3.82M	-936.00K	-9.78M	-2.96M	-28.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.94M	21.39M	16.30M	14.41M	21.30M
	Total Assets
76.12M	31.74M	25.03M	27.46M	26.32M
	Total Debt
107.00K	5.40M	6.52M	6.70M	7.14M
	Net Debt
-14.83M	-15.99M	-9.78M	-7.71M	-14.15M
	Total Liabilities
51.70M	16.26M	11.95M	9.84M	10.66M
	Stockholders Equity
24.43M	15.48M	13.08M	17.63M	15.66M
Cash Flow		Free Cash Flow
943.00K	6.04M	2.03M	-7.98M	-22.40M
	Operating Cash Flow
969.00K	6.82M	4.82M	-4.72M	-22.35M
	Investing Cash Flow
-40.01M	-775.00K	-2.79M	-2.56M	-50.00K
	Financing Cash Flow
32.59M	-957.00K	-134.00K	391.00K	31.63M

Eton Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETON, the sentiment is Positive. The current price of 15.82 is above the 20-day moving average (MA) of 13.47, above the 50-day MA of 14.29, and above the 200-day MA of 10.25, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 64.65 is Neutral, neither overbought nor oversold. The STOCH value of 87.79 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ETON.

Eton Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETON	61 Neutral	$423.45M	―	-19.16%	―	23.29%	-309.12%
BNTC	54 Neutral	$354.97M	―	-46.85%	―	-100.00%	72.73%
Sector *	51 Neutral	$5.32B	3.32	-40.25%	2.90%	17.93%	2.14%
ABSI	50 Neutral	$410.08M	―	-58.04%	―	-20.71%	22.25%
HRTX	47 Neutral	$350.36M	―	40.36%	―	13.57%	89.73%
MREO	43 Neutral	$394.07M	―	-58.31%	―	―	―
TECX	42 Neutral	$417.67M	―	-42.09%	―	―	-343.40%

Eton Pharmaceuticals Corporate Events

Eton Pharmaceuticals to Host Virtual Investor Day

Eton Pharmaceuticals has announced that its management will use presentation slides at the Company’s Investor Day, which will be held virtually on March 18, 2025. The information provided in these slides is not considered ‘filed’ under the Securities Exchange Act of 1934 or the Securities Act of 1933, unless specifically referenced in future filings.