Cipher Pharmaceuticals (CPH) AI Stock Analysis

• Market Cap: $368.97M
• Dividend Yield: N/A
• Average Volume (3M): 21.70K
• Price to Earnings (P/E): 21.5
• Beta (1Y): -0.08
• Revenue Growth: 121.40%
• EPS Growth: -47.34%
• Country: CA
• Employees: 5
• Sector: Healthcare
• Sector Strength: 49
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.30
• Shares Outstanding: 25,622,940
• 10 Day Avg. Volume: 28,912
• 30 Day Avg. Volume: 21,696
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 10.54
• Enterprise Value/Gross Profit: 14.59
• Enterprise Value/Ebitda: 29.64
• 1Y Price Target: $17.16
• Price Target Upside: 20.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 76 Outperform
• Price Target: C$17.50 ▲(23.07% Upside)

Cipher Pharmaceuticals' strong financial performance and record earnings quarter are the most significant factors driving the score. The bullish technical indicators are tempered by overbought signals, and while the valuation is reasonable, the lack of a dividend yield is a minor drawback. Overall, the company is well-positioned for growth, but investors should be cautious of potential short-term volatility.

Cipher Pharmaceuticals Business Overview & Revenue Model

Company Description

Cipher Pharmaceuticals (CPH) is a Canadian specialty pharmaceutical company focused on acquiring, developing, and commercializing innovative prescription products. The company primarily operates in the therapeutic areas of dermatology and pain management, offering a range of products that address unmet medical needs. Cipher's core portfolio includes branded and generic prescription medications, as well as proprietary products designed to improve patient outcomes.

How the Company Makes Money

Cipher Pharmaceuticals generates revenue through multiple streams, primarily from the sale of its prescription products. The company earns income through the commercialization of its proprietary products, as well as through partnerships and licensing agreements with other pharmaceutical companies. By leveraging its expertise in product development and regulatory processes, Cipher often seeks to obtain exclusive rights to market certain drugs, thereby enhancing its revenue potential. Key revenue streams include sales from its marketed products, royalties from licensed products, and collaborative agreements that may involve milestone payments. Additionally, Cipher's strategic partnerships with other firms help expand its market reach and enhance its portfolio, contributing to its overall earnings.

Cipher Pharmaceuticals Financial Statement Overview

Summary

Cipher Pharmaceuticals demonstrates strong revenue growth and robust gross margins, positioning it well in the pharmaceuticals industry. However, declining net profit margins and ROE highlight potential challenges in maintaining profitability and operational efficiency. The balance sheet remains solid with manageable debt levels, but cash flow improvements are needed to sustain future growth.

Income Statement

Cipher Pharmaceuticals has shown a robust revenue growth from 2023 to 2024, increasing by 57.7%, which is a positive indicator of the company's market expansion and product demand. The gross profit margin is strong at 72.3% in 2024, indicating efficient cost management. However, the absence of EBIT in 2024 could suggest increased operating expenses or write-offs. Net profit margin decreased significantly from 96.3% in 2023 to 34.6% in 2024, which raises concerns about profitability sustainability.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.40 in 2024, reflecting prudent leverage levels. Return on Equity (ROE) saw a notable decrease to 11.3% in 2024 from 25.3% in 2023, indicating reduced efficiency in generating profits from shareholders' equity. The equity ratio is stable at 63.0%, showcasing a solid capital structure with a high proportion of equity financing.

Cash Flow

Operating cash flow has improved, with a 22.2% increase from 2023 to 2024, supporting operational stability. The free cash flow to net income ratio remains impressive at 1.69 in 2024, indicating strong cash conversion. However, free cash flow growth is moderate at 22.1%, suggesting potential constraints in cash generation compared to previous years.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	33.36M	21.16M	20.68M	21.94M	21.61M
Gross Profit	24.10M	17.09M	16.68M	18.26M	18.55M
EBITDA	11.87M	11.53M	12.04M	13.66M	13.40M
Net Income	11.54M	20.38M	26.64M	7.76M	4.55M
Balance Sheet
Total Assets	162.51M	86.03M	73.78M	51.65M	44.28M
Cash, Cash Equivalents and Short-Term Investments	17.84M	39.83M	28.84M	20.55M	9.14M
Total Debt	40.58M	353.00K	428.00K	516.00K	1.85M
Total Liabilities	60.17M	5.51M	9.70M	12.75M	11.63M
Stockholders Equity	102.34M	80.52M	64.08M	38.90M	32.64M
Cash Flow
Free Cash Flow	19.50M	15.98M	10.49M	13.81M	10.93M
Operating Cash Flow	19.55M	16.00M	10.57M	13.81M	11.69M
Investing Cash Flow	-80.04M	-144.00K	-81.00K	0.00	-760.00K
Financing Cash Flow	39.30M	-5.24M	-1.91M	-2.47M	-8.13M

Cipher Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.22
• 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 TSE:CPH, the sentiment is Positive. The current price of 14.22 is above the 20-day moving average (MA) of 13.17, above the 50-day MA of 13.04, and above the 200-day MA of 13.29, indicating a bullish trend. The MACD of 0.52 indicates Negative momentum. The RSI at 60.70 is Neutral, neither overbought nor oversold. The STOCH value of 74.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CPH.

Cipher Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPH	76 Outperform	$368.97M	21.54	12.25%	―	121.40%	-47.34%
OGI	71 Outperform	C$286.51M	67.00	1.86%	―	38.86%	―
GUD	68 Neutral	C$619.84M	1,829.41	0.03%	―	13.82%	―
MDP	68 Neutral	C$88.71M	71.78	1.88%	―	0.03%	-17.30%
TH	61 Neutral	$205.53M	―		―	5.24%	-7.99%
HLS	58 Neutral	C$159.79M	―	-20.58%	―	-3.73%	32.70%
Sector *	51 Neutral	$7.46B	-0.16	-46.00%	2.25%	22.82%	-2.28%

Cipher Pharmaceuticals Corporate Events

Cipher Pharmaceuticals Achieves Record Revenue in Q2 2025

Cipher Pharmaceuticals reported record revenue of $13.4 million for Q2 2025, driven by strong performance in its U.S. business, particularly from Natroba. The company’s financial strategy includes significant debt repayment and share repurchases, positioning it well for future growth opportunities. The company’s growth is further supported by increased sales of Epuris in Canada and strategic positioning of Natroba in the U.S. market, including a preferred status on Illinois Medicaid.

The most recent analyst rating on (TSE:CPH) stock is a Buy with a C$16.00 price target. To see the full list of analyst forecasts on Cipher Pharmaceuticals stock, see the TSE:CPH Stock Forecast page.

Cipher Pharmaceuticals to Announce Q2 2025 Financial Results

Cipher Pharmaceuticals announced it will release its financial results for the second quarter of 2025 on August 7, followed by a conference call on August 8 to discuss the results and corporate developments. This announcement highlights the company’s ongoing commitment to transparency and communication with stakeholders, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:CPH) stock is a Buy with a C$16.00 price target. To see the full list of analyst forecasts on Cipher Pharmaceuticals stock, see the TSE:CPH Stock Forecast page.

Cipher Pharmaceuticals’ Shareholders Approve Key Resolutions at Annual Meeting

Cipher Pharmaceuticals announced the successful results of its annual and special meeting of shareholders, where all proposed matters were approved by a majority vote. Key approvals included the election of director nominees, the re-appointment of RSM Canada LLP as auditor, and the resolution concerning unallocated shares under the company’s share purchase plan. Approximately 50.9% of total shares were represented at the meeting, indicating strong shareholder engagement.

The most recent analyst rating on (TSE:CPH) stock is a Buy with a C$16.00 price target. To see the full list of analyst forecasts on Cipher Pharmaceuticals stock, see the TSE:CPH Stock Forecast page.