Eton Pharmaceuticals (ETON) AI Stock Analysis

• Market Cap: $453.75M
• Dividend Yield: N/A
• Average Volume (3M): 305.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 102.77%
• EPS Growth: -17.00%
• Country: US
• Employees: 31
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): 0.04
• Shares Outstanding: 26,817,535
• 10 Day Avg. Volume: 329,425
• 30 Day Avg. Volume: 305,026
• PEG Ratio: -0.29
• Price to Book (P/B): 14.12
• Price to Sales (P/S): 8.84
• P/FCF Ratio: 365.77
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 8.22
• Enterprise Value/Gross Profit: 16.01
• Enterprise Value/Ebitda: 436.99
• 1Y Price Target: $35.00
• Price Target Upside: 100.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $17.50 ▲(0.23% Upside)

Eton Pharmaceuticals' overall stock score is primarily influenced by its strong revenue growth and positive earnings call sentiment. However, the stock faces challenges with profitability, technical indicators suggesting bearish momentum, and unattractive valuation metrics. The company's strategic initiatives and product performance provide a positive outlook, but financial and market challenges weigh on the overall score.

Positive Factors

Revenue Growth

Consistent and substantial revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business prospects.

Cash Generation

Strong cash generation supports operational flexibility and investment in growth initiatives, contributing to financial stability and resilience.

Product Portfolio Expansion

Expanding product portfolio enhances competitive positioning and addresses unmet medical needs, driving future revenue streams.

Negative Factors

Profitability Challenges

Ongoing net losses highlight challenges in achieving sustainable profitability, which may impact long-term financial health and investment capacity.

KHINDIVI Label Restriction

Regulatory restrictions on KHINDIVI limit market potential and adoption, affecting revenue growth in key demographic segments.

High Liabilities

High liabilities can constrain financial flexibility and increase risk, potentially limiting the company's ability to invest in growth opportunities.

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 commercialization of its pharmaceutical products. The company earns income by selling its developed medications directly to healthcare providers, pharmacies, and hospitals. Additionally, Eton may receive milestone payments and royalties from licensing agreements with larger pharmaceutical companies, which partner with Eton to develop and distribute specific products. These partnerships often involve shared responsibilities in development and marketing, allowing Eton to leverage the resources and networks of its partners. Furthermore, the company may benefit from government contracts and grants aimed at supporting the development of pediatric formulations, contributing to its overall revenue stream.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	70.32M	39.01M	31.64M	21.25M	21.83M	39.00K
Gross Profit	36.12M	23.41M	21.06M	14.32M	19.21M	-247.00K
EBITDA	1.32M	-1.45M	-291.00K	-6.49M	-1.03M	-26.46M
Net Income	-6.68M	-3.82M	-936.00K	-9.02M	-1.96M	-27.97M
Balance Sheet
Total Assets	104.51M	76.12M	31.74M	25.03M	27.46M	26.32M
Cash, Cash Equivalents and Short-Term Investments	37.12M	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	81.38M	51.70M	16.26M	11.95M	9.84M	10.66M
Stockholders Equity	23.13M	24.43M	15.48M	13.08M	17.63M	15.66M
Cash Flow
Free Cash Flow	12.89M	943.00K	6.04M	2.03M	-7.98M	-22.40M
Operating Cash Flow	21.31M	969.00K	6.82M	4.82M	-4.72M	-22.35M
Investing Cash Flow	-38.42M	-40.01M	-775.00K	-2.79M	-2.56M	-50.00K
Financing Cash Flow	33.97M	32.59M	-957.00K	-134.00K	391.00K	31.63M

Eton Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.46
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETON, the sentiment is Negative. The current price of 17.46 is below the 20-day moving average (MA) of 18.23, below the 50-day MA of 18.81, and above the 200-day MA of 16.44, indicating a neutral trend. The MACD of -0.37 indicates Positive momentum. The RSI at 42.30 is Neutral, neither overbought nor oversold. The STOCH value of 27.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ETON.

Eton Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETON	56 Neutral	$453.75M	―	-34.17%	―	102.77%	-17.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
RGNX	51 Neutral	$557.87M	―	-76.88%	―	91.30%	30.69%
ITOS	49 Neutral	―	―	―	―	-100.00%	-61.86%
ABSI	45 Neutral	$496.42M	―	-57.39%	―	27.32%	-1.34%
TECX	42 Neutral	$352.99M	-4.90	-32.21%	―	―	60.40%
MBX	38 Underperform	$1.10B	―	-24.43%	―	―	―

Eton Pharmaceuticals Corporate Events

Eton Pharmaceuticals Reports Strong Q3 Growth Amid Challenges

Eton Pharmaceuticals recently held its earnings call, revealing a generally positive sentiment despite some challenges. The company celebrated substantial revenue growth and strong performance from key products, resulting in positive cash flow and profitability. However, issues with net income, patient count for INCRELEX, and FDA restrictions on KHINDIVI were noted. Overall, the outlook remains optimistic with strategic initiatives in progress.

Eton Pharmaceuticals Reports Strong Q3 2025 Growth

Eton Pharmaceuticals is an innovative pharmaceutical company that focuses on developing and commercializing treatments for rare diseases. The company has a diverse portfolio of commercial products and several late-stage development candidates, primarily in the pediatric endocrinology sector.

Eton Pharmaceuticals Reports Strong Q2 Growth Amid Challenges

Eton Pharmaceuticals’ recent earnings call conveyed a generally positive sentiment, underscored by robust revenue growth and successful product launches. The company showcased solid financial performance with significant cash flow and EBITDA gains. However, challenges such as Khindivi’s limited age approval and the need for further clinical studies for Increlex were also acknowledged, which could impact future growth.

Eton Pharmaceuticals Reports Robust Q2 2025 Growth

Eton Pharmaceuticals is an innovative pharmaceutical company that focuses on developing and commercializing treatments for rare diseases. The company has a diverse portfolio of commercial products and is actively advancing several late-stage product candidates.