Eton Pharmaceuticals (ETON) AI Stock Analysis

• Market Cap: $493.44M
• Dividend Yield: N/A
• Average Volume (3M): 326.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• 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: 293,452
• 30 Day Avg. Volume: 326,822
• 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: 0.79
• Enterprise Value/Revenue: 6.68
• Enterprise Value/Gross Profit: 11.24
• Enterprise Value/Ebitda: 20.45K
• 1Y Price Target: $32.00
• Price Target Upside: 72.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: $19.50 ▲(5.12% Upside)

Eton Pharmaceuticals' overall score is driven by strong earnings call performance, highlighting significant revenue growth and strategic achievements. However, financial performance and valuation concerns, particularly ongoing losses and high liabilities, weigh on the score. Technical indicators suggest potential short-term weakness, but the oversold stochastic may signal a rebound opportunity.

Positive Factors

Revenue Growth

Eton Pharmaceuticals' significant revenue growth showcases its expanding market reach and successful product sales, indicating strong business momentum.

FDA Approvals

FDA approval of Khindivi enhances Eton's product portfolio, strengthening its competitive position in the pediatric endocrinology market.

Cash Flow Management

Improved cash flow management and positive EBITDA reflect Eton's ability to convert earnings into cash, supporting long-term financial stability.

Negative Factors

Profitability Concerns

Ongoing profitability challenges suggest issues in cost management or competitive pressures, which may hinder sustainable growth.

High Liabilities

High liabilities could strain Eton's financial resources, limiting its ability to invest in growth opportunities and manage risks effectively.

Label Limitation for Khindivi

Label restrictions for Khindivi reduce its market reach, potentially affecting revenue growth from this product in the pediatric segment.

Eton Pharmaceuticals Business Overview & Revenue Model

Company Description

Eton Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on developing and commercializing innovative pharmaceutical products, primarily in the areas of pediatrics and rare diseases. The company's portfolio includes approved products, as well as a robust pipeline of product candidates that leverage its proprietary formulations and delivery technologies. Eton aims to address unmet medical needs by providing medications that are safer, more effective, and easier to administer for patients, particularly in underserved populations.

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: 18.55
• 50DMA: Positive
• 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 Positive. The current price of 18.55 is below the 20-day moving average (MA) of 19.82, above the 50-day MA of 18.47, and above the 200-day MA of 16.16, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 47.13 is Neutral, neither overbought nor oversold. The STOCH value of 28.77 is Neutral, 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	60 Neutral	$493.44M	―	-22.06%	―	85.40%	40.95%
RGNX	55 Neutral	$638.50M	―	-62.49%	―	74.95%	34.25%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ITOS	49 Neutral	―	―	―	―	-100.00%	-61.86%
ABSI	45 Neutral	$689.30M	―	-57.39%	―	27.32%	-1.34%
TECX	42 Neutral	$356.47M	―	-29.32%	―	―	71.85%
MBX	38 Underperform	$636.30M	―	-56.28%	―	―	―

Eton Pharmaceuticals Corporate Events

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.