TSX:CPH

Stock Analysis Report

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Market Cap

CA$44.2m

Last Updated

2021/06/19 02:30 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Very undervalued with flawless 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 is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: CPH's weekly volatility (11%) has been stable over the past year.


Market Performance


7 Day Return

-4.6%

CPH

-5.8%

CA Pharmaceuticals

-2.1%

CA Market


1 Year Return

39.8%

CPH

63.5%

CA Pharmaceuticals

33.6%

CA Market

Return vs Industry: CPH underperformed the Canadian Pharmaceuticals industry which returned 65.6% over the past year.

Return vs Market: CPH exceeded the Canadian Market which returned 34.7% over the past year.


Shareholder returns

CPHIndustryMarket
7 Day-4.6%-5.8%-2.1%
30 Day19.6%-0.9%1.0%
90 Day47.3%-21.3%3.8%
1 Year39.8%39.8%63.5%63.5%38.0%33.6%
3 Year-44.6%-44.6%-49.5%-50.2%28.7%16.4%
5 Year-75.2%-75.2%272.2%269.5%59.6%35.6%

Long-Term 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$1.65) is trading below our estimate of fair value (CA$9.27)

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 (11x) compared to the Canadian Pharmaceuticals industry average (22.6x).

PE vs Market: CPH is good value based on its PE Ratio (11x) compared to the Canadian market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: CPH is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: CPH is good value based on its PB Ratio (1x) compared to the CA Pharmaceuticals industry average (3.2x).


Future Growth

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

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPH's forecast earnings growth (13.6% per year) is above the savings rate (1.5%).

Earnings vs Market: CPH's earnings (13.6% per year) are forecast to grow slower than the Canadian market (13.9% per year).

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

Revenue vs Market: CPH's revenue is expected to decline over the next 3 years (-4.8% per year).

High Growth Revenue: CPH's revenue is forecast to decline over the next 3 years (-4.8% 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


Past Performance

How has Cipher Pharmaceuticals performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPH has a large one-off loss of $6.7M impacting its March 31 2021 financial results.

Growing Profit Margin: CPH's current net profit margins (15.4%) are lower than last year (18.5%).


Past Earnings Growth Analysis

Earnings Trend: CPH's earnings have declined by 2.7% per year over the past 5 years.

Accelerating Growth: CPH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CPH had negative earnings growth (-24.5%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (12.1%).


Return on Equity

High ROE: CPH's Return on Equity (9.6%) is considered low.


Financial Health

How is Cipher Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: CPH's short term assets ($22.4M) exceed its short term liabilities ($10.7M).

Long Term Liabilities: CPH's short term assets ($22.4M) exceed its long term liabilities ($1.7M).


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 66.4%.

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


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?

1.9yrs

Average management tenure


CEO

Craig Mull

1.92yrs

Tenure

US$22,601

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 not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: CPH's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CPH 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$44.187m
  • Shares outstanding: 26.78m
  • Website: https://www.cipherpharma.com

Number of Employees


Location

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

Listings


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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 02:30
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.