Cipher Pharmaceuticals (CPH) AI Stock Analysis

• Market Cap: C$316.44M
• Dividend Yield: N/A
• Average Volume (3M): 17.56K
• Price to Earnings (P/E): 24.0
• Beta (1Y): -0.25
• Revenue Growth: 84.83%
• EPS Growth: -58.69%
• Country: CA
• Employees: 5
• Sector: Healthcare
• Sector Strength: 37
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.14
• Shares Outstanding: 25,622,940
• 10 Day Avg. Volume: 17,355
• 30 Day Avg. Volume: 17,560
• PEG Ratio: -1.09
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.15
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 2.49
• Enterprise Value/Gross Profit: 10.77
• Enterprise Value/Ebitda: 5.29
• 1Y Price Target: C$15.00
• Price Target Upside: 21.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: C$13.50 ▲(9.31%Upside)

Cipher Pharmaceuticals is positioned well with strong revenue growth and strategic initiatives, particularly the Natroba acquisition and debt management. However, technical analysis indicates potential short-term weakness, and profitability challenges persist.

Cipher Pharmaceuticals Business Overview & Revenue Model

Company Description

Cipher Pharmaceuticals Inc. is a Canada-based specialty pharmaceutical company focused on dermatology. The company specializes in acquiring, developing, and commercializing prescription products. Cipher's core products are based on innovative delivery technologies that enhance the lifecycle of existing medicines, primarily within the dermatological sector.

How the Company Makes Money

Cipher Pharmaceuticals generates revenue through a combination of product sales, royalties, and licensing agreements. The company commercializes its own branded dermatology products in North America while also licensing its products to partners in other regions. Key revenue streams include direct sales of their proprietary drugs, royalties from partners who commercialize Cipher's products, and milestone payments from licensing agreements. Strategic partnerships and in-licensing of new products are significant factors contributing to the company's earnings, allowing them to expand their product portfolio and market reach.

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: Negative
• Last Price: 12.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CPH, the sentiment is Negative. The current price of 12.35 is below the 20-day moving average (MA) of 12.90, below the 50-day MA of 12.77, and below the 200-day MA of 13.55, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 8.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CPH.

Cipher Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OGI	71 Outperform	C$282.50M	20.27	4.76%	―	26.93%	―
CPH	70 Outperform	C$316.44M	23.98	9.69%	―	84.83%	-58.69%
MDP	68 Neutral	C$85.48M	20.64	5.27%	―	-1.14%	―
GUD	65 Neutral	$602.90M	54.10	1.41%	―	12.21%	―
TH	60 Neutral	C$197.25M	―		―	5.24%	-7.99%
HLS	56 Neutral	C$154.59M	―	-23.05%	―	-3.73%	32.70%
Sector *	52 Neutral	$7.46B	-0.04	-63.82%	2.49%	16.43%	<0.01%

Cipher Pharmaceuticals Corporate Events

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.

Cipher Pharmaceuticals Reports Strong Q1 2025 Results and Strategic Debt Repayment

Cipher Pharmaceuticals reported a significant financial performance in the first quarter of 2025, with total revenue increasing by 105% to $12.0 million compared to the previous year. The company’s Canadian product portfolio saw a 41% revenue increase, and Natroba™ sales contributed $6.7 million. The company also announced a $15 million debt repayment, reducing its revolving credit facility balance, and highlighted strategic moves such as the preferred status of Natroba™ in Illinois Medicaid and a share repurchase program, indicating a strong financial position and strategic growth opportunities.

Cipher Pharmaceuticals to Announce Q1 2025 Financial Results

Cipher Pharmaceuticals announced its financial results for the first quarter of 2025 will be released on May 8, 2025, followed by a conference call on May 9, 2025, to discuss the results and corporate developments. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor relations.

Cipher Pharmaceuticals’ Natroba™ Gains Preferred Status in Illinois Medicaid

Cipher Pharmaceuticals announced that its product Natroba™ has been granted preferred drug status on Illinois’ Medicaid Preferred Drug Listing for the treatment of scabies and head lice, while its competitor, Permethrin 5%, has been downgraded. This decision is expected to influence prescribing habits, potentially benefiting Cipher’s market position. The company sees this as a significant growth opportunity and is in discussions with other states to expand Natroba’s preferred status, addressing the global issue of lice resistance to Permethrin.