Eton Pharmaceuticals (ETON) AI Stock Analysis

• Market Cap: $570.41M
• Dividend Yield: N/A
• Average Volume (3M): 276.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: 85.40%
• EPS Growth: 40.95%
• Country: US
• Employees: 31
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.10
• Shares Outstanding: 26,817,535
• 10 Day Avg. Volume: 339,570
• 30 Day Avg. Volume: 276,930
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 6.68
• Enterprise Value/Gross Profit: 11.24
• Enterprise Value/Ebitda: 20.45K
• 1Y Price Target: $30.00
• Price Target Upside: 41.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 67 Neutral
• Price Target: $21.50 ▲(1.08% Upside)

Eton Pharmaceuticals' stock score is driven by strong earnings call results and positive technical indicators, despite challenges in profitability and valuation. The company's robust revenue growth and strategic achievements in product launches and FDA approvals are significant strengths. However, the negative P/E ratio and overbought technical signals present potential risks.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates strong market demand and effective product commercialization, suggesting a positive trajectory for future earnings and market expansion.

Product Portfolio Expansion

New product approvals and submissions enhance Eton's portfolio, addressing unmet needs in pediatrics and rare diseases, which can drive long-term growth and competitive positioning.

Cash Flow Improvement

Improved cash flow and EBITDA reflect better financial management and operational efficiency, providing the company with more resources to invest in growth and innovation.

Negative Factors

Profitability Challenges

Ongoing profitability issues suggest challenges in cost management or competitive pressures, which could hinder long-term financial stability and growth potential.

High Liabilities

A high level of liabilities can restrict the company's ability to invest in new opportunities and manage economic downturns, potentially affecting its long-term strategic initiatives.

Label Limitation for Khindivi

The restricted label for Khindivi limits its market potential, as a significant portion of the target demographic falls outside the approved age range, potentially affecting sales growth.

Eton Pharmaceuticals Business Overview & Revenue Model

Company Description

Eton Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing and commercializing pharmaceutical products for rare diseases. The company offers Biorphen, a phenylephrine injection for the treatment of clinically important hypotension resulting primarily from vasodilation in the setting of anesthesia; Carglumic Acid for the treatment of acute and chronic hyperammonemia due to N-acetylglutamate Synthase deficiency; and Rezipres, a ready-to-use formulation of a molecule that is indicated for the treatment of clinically important hypotension occurring in the setting of anesthesia. It also offers Alkindi Sprinkle, a replacement therapy for adrenocortical insufficiency in children under 17 years of age; EPRONTIA, a liquid formulation of topiramate; and Alaway Preservative Free, a preservative-free ophthalmic product to treat allergic conjunctivitis. In addition, the company develops Zonisamide Oral Suspension for the treatment of partial on-set seizures; Lamotrigine for Oral Suspension for the treatment of partial on-set seizures; cysteine injection; dehydrated alcohol injection; and Zeneo hydrocortisone autoinjector. Eton Pharmaceuticals, Inc. was incorporated in 2017 and is based in Deer Park, Illinois.

How the Company Makes Money

Eton Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products, which include both approved medications and those in various stages of development. The company earns revenue from product sales, including both direct sales and sales through partnerships with other pharmaceutical companies. Additionally, Eton may receive milestone payments and royalty income from its collaborations and licensing agreements. These partnerships often involve sharing development costs and risks, allowing Eton to leverage its resources effectively. The company also benefits from government programs and incentives aimed at promoting the development of treatments for rare diseases and pediatric conditions, which can further enhance its financial performance.

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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.18M	39.01M	31.64M	21.25M	21.83M	39.00K
Gross Profit	34.56M	23.41M	21.06M	14.32M	19.21M	-247.00K
EBITDA	19.00K	-1.45M	-291.00K	-6.49M	-1.12M	-26.46M
Net Income	-4.13M	-3.82M	-936.00K	-9.02M	-1.96M	-27.97M
Balance Sheet
Total Assets	101.68M	76.12M	31.74M	25.03M	27.46M	26.32M
Cash, Cash Equivalents and Short-Term Investments	25.38M	14.94M	21.39M	16.30M	14.41M	21.30M
Total Debt	3.26M	29.92M	5.40M	6.52M	6.70M	7.14M
Total Liabilities	77.72M	51.70M	16.26M	11.95M	9.84M	10.66M
Stockholders Equity	23.96M	24.43M	15.48M	13.08M	17.63M	15.66M
Cash Flow
Free Cash Flow	5.97M	943.00K	6.04M	2.03M	-7.98M	-22.40M
Operating Cash Flow	12.24M	969.00K	6.82M	4.82M	-4.72M	-22.35M
Investing Cash Flow	-38.13M	-40.01M	-775.00K	-2.79M	-2.56M	-50.00K
Financing Cash Flow	33.58M	32.59M	-957.00K	-134.00K	391.00K	31.63M

Eton Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.27
• 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 ETON, the sentiment is Positive. The current price of 21.27 is above the 20-day moving average (MA) of 18.26, above the 50-day MA of 16.84, and above the 200-day MA of 15.53, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 82.80 is Negative, neither overbought nor oversold. The STOCH value of 96.45 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	67 Neutral	$570.41M	―	-22.06%	―	85.40%	40.95%
RGNX	59 Neutral	487.46M	-2.79	-82.17%	―	74.95%	34.25%
ABSI	45 Neutral	408.20M	-2.89	-57.56%	―	27.32%	-1.34%
TECX	42 Neutral	284.42M	-3.77	―	―	―	71.85%
MBX	38 Underperform	588.47M	-7.60	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Eton Pharmaceuticals Corporate Events

Eton Pharmaceuticals’ New Drug Application Accepted by FDA

On July 8, 2025, Eton Pharmaceuticals announced that its New Drug Application for ET-600, a patented desmopressin oral solution, was accepted for review by the FDA, with a target action date set for February 25, 2026. If approved, ET-600 will be the only oral liquid option for treating central diabetes insipidus in pediatric patients, addressing a significant unmet need and representing a potential high-value product launch for Eton in early 2026.

The most recent analyst rating on (ETON) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Eton Pharmaceuticals stock, see the ETON Stock Forecast page.

Eton Pharmaceuticals Joins Russell 3000 and 2000 Indexes

On June 27, 2025, Eton Pharmaceuticals announced its inclusion in the Russell 3000® and Russell 2000® Indexes, effective after the U.S. market close on the same day. This milestone highlights the company’s significant shareholder value generation over the past year and is expected to enhance its visibility among investors, potentially impacting its market positioning positively.

The most recent analyst rating on (ETON) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Eton Pharmaceuticals stock, see the ETON Stock Forecast page.

Eton Pharmaceuticals Holds Annual Stockholders Meeting

On June 10, 2025, Eton Pharmaceuticals, Inc. held its Annual Meeting of Stockholders virtually. During the meeting, stockholders elected Paul V. Maier as a director for a three-year term and ratified Crowe LLP as the independent registered public accounting firm for the year ending December 31, 2025. These decisions are expected to influence the company’s governance and financial oversight positively.

The most recent analyst rating on (ETON) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Eton Pharmaceuticals stock, see the ETON Stock Forecast page.

Eton Pharmaceuticals Gains FDA Approval for KHINDIVI

On May 28, 2025, Eton Pharmaceuticals announced the FDA approval of KHINDIVI, the first and only FDA-approved hydrocortisone oral solution for pediatric patients with adrenocortical insufficiency. This approval marks a significant advancement for patients and caregivers, offering a more precise and convenient dosing option. The commercial launch is expected in early June, with projected peak sales of KHINDIVI and ALKINDI SPRINKLE exceeding $50 million annually. The introduction of KHINDIVI is expected to enhance Eton’s market position in the rare disease treatment sector, providing a critical new tool for pediatric endocrinologists and improving treatment outcomes for patients.

The most recent analyst rating on (ETON) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Eton Pharmaceuticals stock, see the ETON Stock Forecast page.