Cipher Pharmaceuticals (TSX:CPH) - Share price, News & Analysis

CPH fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	1/6
Past Performance	5/6
Financial Health	6/6
Dividends	0/6

CPH Stock Overview

Cipher Pharmaceuticals Inc. operates as a specialty pharmaceutical company in Canada.

Rewards

Trading at 85.5% below our estimate of its fair value

Earnings are forecast to grow 7.94% per year

Earnings grew by 163.8% over the past year

Risk Analysis

Does not have a meaningful market cap (CA$58M)

Cipher Pharmaceuticals Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cipher Pharmaceuticals
Historical stock prices
Current Share Price	CA$2.30
52 Week High	CA$2.80
52 Week Low	CA$1.43
Beta	1.47
1 Month Change	-3.36%
3 Month Change	-3.77%
1 Year Change	49.35%
3 Year Change	75.57%
5 Year Change	-59.65%
Change since IPO	-37.84%

Recent News & Updates

May 14

Here's Why I Think Cipher Pharmaceuticals (TSE:CPH) Is An Interesting Stock

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

	CPH	CA Pharmaceuticals	CA Market
7D	-2.5%	-0.3%	0.3%
1Y	49.4%	-70.9%	-4.0%

Return vs Industry: CPH exceeded the Canadian Pharmaceuticals industry which returned -70.9% over the past year.

Return vs Market: CPH exceeded the Canadian Market which returned -4.1% over the past year.

Price Volatility

Is CPH's price volatile compared to industry and market?
CPH volatility
CPH Average Weekly Movement	5.4%
Pharmaceuticals Industry Average Movement	11.7%
Market Average Movement	10.0%
10% most volatile stocks in CA Market	17.3%
10% least volatile stocks in CA Market	4.4%

Stable Share Price: CPH is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CPH's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2000	5	Craig Mull	https://www.cipherpharma.com

Cipher Pharmaceuticals Inc. operates as a specialty pharmaceutical company in Canada. Its commercial products include Epuris (CIP-ISOTRETINOIN), a formulation of the active ingredient isotretinoin for use in the treatment of severe acne; Ozenoxacin to treat adult and paediatric patients with impetigo; Actikerall, which is indicated for the treatment of palpable or moderately thick hyperkeratotic actinic keratosis; Vaniqa, a prescription cream that reduces the growth of unwanted facial hair in women; BRINAVESS, a treatment for sinus rhythm in adults; and AGGRASTAT, an intravenous anti-platelet drug. The company’s licensed products comprise CIP-Isotretinoin; Lipofen (CIP-Fenofibrate), a formulation of the active ingredient fenofibrate used for the treatment of hyperlipidemia, a cholesterol disorder; and Conzip/Durela (CIP- Tramadol), a formulation of the active ingredient tramadol for the management of moderate to moderately severe pain.

Cipher Pharmaceuticals Fundamentals Summary

How do Cipher Pharmaceuticals's earnings and revenue compare to its market cap?
CPH fundamental statistics
Market Cap	US$45.28m
Earnings (TTM)	US$8.57m
Revenue (TTM)	US$21.91m

5.3x

P/E Ratio

2.1x

P/S Ratio

Is CPH overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CPH income statement (TTM)
Revenue	US$21.91m
Cost of Revenue	US$3.89m
Gross Profit	US$18.02m
Other Expenses	US$9.46m
Earnings	US$8.57m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.34
Gross Margin	82.26%
Net Profit Margin	39.10%
Debt/Equity Ratio	0%

How did CPH perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is CPH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CPH?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CPH. This is calculated by dividing CPH's market cap by their current preferred multiple.
What is CPH's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$45.28m

CPH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	1.9x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does CPH's PE Ratio compare to its peers?

CPH PE Ratio vs Peers

The above table shows the PE ratio for CPH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	26.2x

Forward PE

Price-To-Earnings vs Peers: CPH is good value based on its Price-To-Earnings Ratio (5.3x) compared to the peer average (26.2x).

Price to Earnings Ratio vs Industry

How does CPH's PE Ratio compare vs other companies in the Pharmaceuticals Industry?

Price-To-Earnings vs Industry: CPH is good value based on its Price-To-Earnings Ratio (5.3x) compared to the Canadian Pharmaceuticals industry average (8.2x)

Price to Earnings Ratio vs Fair Ratio

What is CPH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CPH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.3x
Fair PE Ratio	23.1x

Price-To-Earnings vs Fair Ratio: CPH is good value based on its Price-To-Earnings Ratio (5.3x) compared to the estimated Fair Price-To-Earnings Ratio (23.1x).

Share Price vs Fair Value

What is the Fair Price of CPH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CPH (CA$2.3) is trading below our estimate of fair value (CA$15.88)

Significantly Below Fair Value: CPH is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: CPH is good value based on its PEG Ratio (0.7x)

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Future Growth

How is Cipher Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPH's forecast earnings growth (7.9% per year) is above the savings rate (1.6%).

Earnings vs Market: CPH's earnings (7.9% per year) are forecast to grow slower than the Canadian market (8.3% per year).

High Growth Earnings: CPH's earnings are forecast to grow, but not significantly.

Revenue vs Market: CPH's revenue (4% per year) is forecast to grow slower than the Canadian market (7.3% per year).

High Growth Revenue: CPH's revenue (4% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if CPH's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Cipher Pharmaceuticals performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-0.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CPH has high quality earnings.

Growing Profit Margin: CPH's current net profit margins (39.1%) are higher than last year (15.4%).

Past Earnings Growth Analysis

Earnings Trend: CPH's earnings have declined by 0.2% per year over the past 5 years.

Accelerating Growth: CPH's earnings growth over the past year (163.8%) exceeds its 5-year average (-0.2% per year).

Earnings vs Industry: CPH earnings growth over the past year (163.8%) exceeded the Pharmaceuticals industry 118.1%.

Return on Equity

High ROE: CPH's Return on Equity (21.2%) is considered high.

Discover strong past performing companies

Financial Health

How is Cipher Pharmaceuticals's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CPH's short term assets ($31.8M) exceed its short term liabilities ($13.2M).

Long Term Liabilities: CPH's short term assets ($31.8M) exceed its long term liabilities ($467.0K).

Debt to Equity History and Analysis

Debt Level: CPH is debt free.

Reducing Debt: CPH has no debt compared to 5 years ago when its debt to equity ratio was 257.3%.

Debt Coverage: CPH has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CPH has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Cipher Pharmaceuticals's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate CPH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate CPH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CPH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CPH's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CPH has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure

CEO

Craig Mull

2.92yrs

Tenure

US$80,054

Compensation

Mr. Craig J. Mull has been Chairman of the Board of Directors at Cipher Pharmaceuticals Inc. since June 11, 2019 and its Interim Chief Executive Officer since July 29, 2019, served as its President. Mr. Mu...

Leadership Team

Experienced Management: CPH's management team is considered experienced (2.9 years average tenure).

Board Members

Experienced Board: CPH's board of directors are considered experienced (5.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31