TSX:CPH

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Cipher Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CPH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.0%

CPH

12.8%

CA Pharmaceuticals

1.3%

CA Market


1 Year Return

4.8%

CPH

-60.3%

CA Pharmaceuticals

-13.7%

CA Market

Return vs Industry: CPH exceeded the Canadian Pharmaceuticals industry which returned -60.7% over the past year.

Return vs Market: CPH exceeded the Canadian Market which returned -14.5% over the past year.


Shareholder returns

CPHIndustryMarket
7 Day4.0%12.8%1.3%
30 Day52.3%32.9%4.2%
90 Day37.9%9.2%-13.6%
1 Year4.8%4.8%-60.3%-60.3%-10.7%-13.7%
3 Year-76.8%-76.8%20.7%19.4%-1.1%-10.3%
5 Year-89.1%-89.1%311.0%311.0%13.4%-3.5%

Price Volatility Vs. Market

How volatile is Cipher Pharmaceuticals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cipher Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPH (CA$1.31) is trading below our estimate of fair value (CA$4.72)

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


Price To Earnings Ratio

PE vs Industry: CPH is good value based on its PE Ratio (5.9x) compared to the Pharmaceuticals industry average (9.6x).

PE vs Market: CPH is good value based on its PE Ratio (5.9x) compared to the Canadian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: CPH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CPH is good value based on its PB Ratio (0.8x) compared to the CA Pharmaceuticals industry average (1.2x).


Next Steps

Future Growth

How is Cipher Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-20.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPH's earnings are forecast to decline over the next 3 years (-20.8% per year).

Earnings vs Market: CPH's earnings are forecast to decline over the next 3 years (-20.8% per year).

High Growth Earnings: CPH's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CPH's revenue is expected to decline over the next 3 years (-21.5% per year).

High Growth Revenue: CPH's revenue is forecast to decline over the next 3 years (-21.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPH's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has Cipher Pharmaceuticals performed over the past 5 years?

-20.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPH has a large one-off loss of $4.9M impacting its March 31 2020 financial results.

Growing Profit Margin: CPH's current net profit margins (18.5%) are higher than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: CPH's earnings have declined by -20.5% per year over the past 5 years.

Accelerating Growth: CPH's earnings growth over the past year (45.2%) exceeds its 5-year average (-20.5% per year).

Earnings vs Industry: CPH earnings growth over the past year (45.2%) exceeded the Pharmaceuticals industry -23.4%.


Return on Equity

High ROE: CPH's Return on Equity (14%) is considered low.


Next Steps

Financial Health

How is Cipher Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: CPH's short term assets ($17.0M) exceed its short term liabilities ($13.2M).

Long Term Liabilities: CPH's short term assets ($17.0M) exceed its long term liabilities ($1.6M).


Debt to Equity History and Analysis

Debt Level: CPH's debt to equity ratio (18.4%) is considered satisfactory.

Reducing Debt: CPH's debt to equity ratio has increased from 1.4% to 18.4% over the past 5 years.

Debt Coverage: CPH's debt is well covered by operating cash flow (218.4%).

Interest Coverage: CPH's interest payments on its debt are well covered by EBIT (20.6x coverage).


Balance Sheet


Next Steps

Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CPH's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Craig Mull

0.83

Tenure

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 also serves as its President. Mr ...


Leadership Team

NamePositionTenureCompensationOwnership
Craig Mull
Interim CEO0.83yrno data1.57% $555.5k
Nadine Jutlah
Interim Chief Financial Officer1.17yrsno data0.030% $10.6k
Norman Evans
Consultant3.67yrsUS$559.83kno data

1.2yrs

Average Tenure

Experienced Management: CPH's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Craig Mull
Interim CEO0.83yrno data1.57% $555.5k
John Mull
Independent Director16.33yrsUS$46.50k36.7% $13.0m
Christian Godin
Independent Director3.75yrsUS$59.00k0.24% $83.8k
Harold Wolkin
Independent Director3.75yrsUS$66.50k0.91% $321.5k
Arthur Deboeck
Director3yrsUS$46.50k0.90% $320.4k

3.8yrs

Average Tenure

69.5yo

Average Age

Experienced Board: CPH's board of directors are considered experienced (3.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Cipher Pharmaceuticals Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cipher Pharmaceuticals Inc.
  • Ticker: CPH
  • Exchange: TSX
  • Founded: 2000
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$35.419m
  • Shares outstanding: 27.04m
  • Website: https://www.cipherpharma.com

Number of Employees


Location

  • Cipher Pharmaceuticals Inc.
  • 209 Oak Park Boulevard
  • Suite 501
  • Oakville
  • Ontario
  • L6H 0M2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPHTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 2004
PHEDB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2004
CPHR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDFeb 2004

Biography

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; BETEFLAM PATCH, a self-adhesive medicated plaster for the treatment of inflammatory skin conditions; BRINAVESS, a treatment for sinus rhythms 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 ER), a formulation of the active ingredient tramadol for the management of moderate to moderately severe pain. Its pipeline products include TRULANCE, a once-daily tablet for the treatment of adults with chronic idiopathic constipation and irritable bowel syndrome with constipation; Trevyent, a drug device combination that delivers treprostinil, the treatment for pulmonary arterial hypertension; CF-101 for severe plaque psoriasis and rheumatoid arthritis; MOB-015, a topical formulation of terbinafine for treatment of onychomycosis; and DTR-001 for tattoo removal. The company was founded in 2000 and is headquartered in Oakville, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 08:12
End of Day Share Price2020/05/25 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.