Eton Pharmaceuticals (ETON) AI Stock Analysis

• Market Cap: $455.63M
• Dividend Yield: N/A
• Average Volume (3M): 254.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• 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: 342,370
• 30 Day Avg. Volume: 254,000
• 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: 0.93
• Enterprise Value/Revenue: 6.00
• Enterprise Value/Gross Profit: 11.68
• Enterprise Value/Ebitda: 318.79
• 1Y Price Target: $30.50
• Price Target Upside: 79.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.01
• Revenue Forecast (FY): $102.80M

• Rating: 64 Neutral
• Price Target: $16.00 ▼(-5.83% Downside)
• Action: Reiterated Date: 02/02/26
• Date: Action: Reiterated 02/02/26

ETON scores as moderately attractive primarily due to improving fundamentals—strong revenue acceleration, robust operating/free cash flow, and a de-risked balance sheet—supported by a generally positive earnings-call outlook on growth and margins. The score is held back by weak technical trends and the lack of current profitability (negative earnings and net losses), with valuation less supportive due to negative EPS and no dividend yield.

Positive Factors

Revenue Momentum

Sustained top-line acceleration to TTM $70.3M and 19 consecutive quarters of sequential growth indicate durable commercial traction. A multi-product mix (ALKINDI, Carglumic Acid, INCRELEX, GALZIN) shows scalable sales execution and repeatable demand across niche pediatric and rare-disease channels.

Cash Generation

Robust operating and free cash flow in the TTM period reflects a structural shift to positive cash-generation after prior years of outflows. This enhances funding flexibility for launches, BD, and label studies without sizable external financing, strengthening long-term operational independence.

De-risked Balance Sheet

Significantly lower leverage vs. prior periods materially reduces financial risk and interest burden. A healthier capital structure supports continued M&A and licensing activity, and gives management runway to commercialize ultra-rare assets while limiting refinancing pressure.

Negative Factors

Persistent Losses

Despite revenue and cash-flow gains, the company remains unprofitable on a net income basis in the TTM. Continued losses constrain return metrics and could limit ability to sustainably invest in marketing or R&D without dilutive financing if cash generation weakens.

Regulatory Label Restriction

An FDA age-based restriction on KHINDIVI structurally reduces addressable market in the largest unmet pediatric cohort. Expanding the label will require additional safety data or reformulation, delaying revenue expansion and adding clinical and commercial execution risk over multiple quarters.

Narrow Patient Dynamics (INCRELEX)

Flat active patient counts and aging-out dynamics create a structural ceiling on organic growth for INCRELEX absent label expansion or new indications. Reliance on small, churn-prone patient populations increases revenue volatility and raises the bar for successful BD or label-harmonization efforts.

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

Financials are trending positively with rapid revenue growth (TTM $70.3M) and strong cash generation (TTM operating cash flow $21.3M; free cash flow $21.0M). Balance sheet risk has improved with low TTM debt ($3.3M) versus equity ($23.1M), but net income remains negative in TTM (-$6.7M), keeping profitability as the key overhang.

Income Statement

ETON shows strong top-line momentum, with revenue accelerating from $21.3M (2022) to $31.6M (2023) to $39.0M (2024) and $70.3M in TTM (Trailing-Twelve-Months), supported by solid gross profitability (about 51% gross margin in TTM). However, profitability remains the key overhang: net income is still negative in TTM (-$6.7M) and operating profit is slightly negative, indicating the business has not yet consistently converted growth into sustainable earnings despite meaningful improvement versus earlier years.

Balance Sheet

Leverage and capitalization look improved in the most recent period: total debt is low in TTM ($3.3M) relative to equity ($23.1M), which reduces financial risk versus 2024 when debt was much higher ($29.9M) and leverage was elevated. The main weakness is that shareholder returns are still negative due to ongoing losses (negative return on equity in both TTM and prior years), so the balance sheet is healthier but not yet being paired with consistent profitability.

Cash Flow

Cash generation is a clear strength. In TTM (Trailing-Twelve-Months), operating cash flow is robust ($21.3M) and free cash flow is similarly strong ($21.0M) with significant free-cash-flow growth versus the prior period, indicating improved cash efficiency and funding flexibility. The key watch item is that profits are still negative, so cash flow strength may reflect favorable working-capital timing or other non-earnings factors; still, the multi-year trend shows a material shift from negative cash flow in 2020–2021 to sustained positive levels in 2022–TTM.

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	21.01M	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: Positive
• Last Price: 16.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 16.99 is above the 20-day moving average (MA) of 16.42, above the 50-day MA of 16.13, and above the 200-day MA of 16.82, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 54.28 is Neutral, neither overbought nor oversold. The STOCH value of 24.32 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	64 Neutral	$455.63M	-68.21	-34.17%	―	102.77%	-17.00%
MBX	60 Neutral	$1.46B	-13.60	-24.43%	―	―	-44.79%
TECX	57 Neutral	$440.31M	-5.80	-32.21%	―	―	60.40%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
RGNX	47 Neutral	$457.63M	-2.59	-76.88%	―	91.30%	30.69%
ABSI	46 Neutral	$412.02M	-3.03	-55.68%	―	-33.09%	3.38%

Eton Pharmaceuticals Corporate Events

Eton Pharmaceuticals Licenses U.S. Rights to Ultra-Rare Drug

On February 2, 2026, Eton Pharmaceuticals announced it had licensed U.S. marketing rights to an ultra-rare disease product candidate that, once approved, is expected to become the first and only generic alternative to a treatment for a condition affecting fewer than 100 patients nationwide. The asset, currently under FDA review and targeted for a mid-2026 approval and launch, is intended to leverage Eton’s existing commercial infrastructure and Eton Cares patient support program, adding to its projected 2026 product launches and supporting the company’s strategy to build one of the largest ultra-rare disease portfolios, which may further entrench its position in the highly specialized orphan drug market and offer a potentially improved experience for a very small but underserved patient population.

The most recent analyst rating on (ETON) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on Eton Pharmaceuticals stock, see the ETON Stock Forecast page.

Eton Pharmaceuticals Joins Piper Sandler Healthcare Conference

On December 4, 2025, Eton Pharmaceuticals, Inc. management will attend the Piper Sandler Annual Healthcare Conference in New York, presenting their corporate slide presentation. This participation is part of their engagement with investors and stakeholders, potentially impacting their market presence and investor relations.

The most recent analyst rating on (ETON) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Eton Pharmaceuticals stock, see the ETON Stock Forecast page.