NasdaqGS:CPIX

Stock Analysis Report

Executive Summary

Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, focuses on the acquisition, development, and commercialization of prescription products for hospital acute care, gastroenterology, and oncology markets in the United States and internationally.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.

Risks

  • Cumberland Pharmaceuticals has significant price volatility in the past 3 months.
  • Cumberland Pharmaceuticals is covered by less than 3 analysts.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-4.6%

NasdaqGS:CPIX

1.9%

US Pharmaceuticals

2.1%

US Market


1 Year Return

-8.0%

NasdaqGS:CPIX

-6.0%

US Pharmaceuticals

-0.04%

US Market

CPIX underperformed the Pharmaceuticals industry which returned -5.8% over the past year.

CPIX underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

CPIXIndustryMarket
7 Day-4.6%1.9%2.1%
30 Day-8.8%-1.7%-3.2%
90 Day-16.1%-3.5%2.8%
1 Year-8.0%-8.0%-3.7%-6.0%2.2%-0.04%
3 Year20.7%20.7%11.3%3.7%41.5%32.3%
5 Year4.9%4.9%23.4%10.4%55.0%37.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Cumberland Pharmaceuticals undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Cumberland Pharmaceuticals's share price is below the future cash flow value, and at a moderate discount (> 20%).

Cumberland Pharmaceuticals's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Cumberland Pharmaceuticals is loss making, we can't compare its value to the US Pharmaceuticals industry average.

Cumberland Pharmaceuticals is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Cumberland Pharmaceuticals, we can't assess if its growth is good value.


Price Based on Value of Assets

Cumberland Pharmaceuticals is good value based on assets compared to the US Pharmaceuticals industry average.


Next Steps

Future Growth

How is Cumberland Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

125.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cumberland Pharmaceuticals's revenue is expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).

Cumberland Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.

Cumberland Pharmaceuticals's revenue growth is expected to exceed the United States of America market average.

Cumberland Pharmaceuticals's earnings growth is expected to exceed the United States of America market average.

Cumberland Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Cumberland Pharmaceuticals will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Cumberland Pharmaceuticals performed over the past 5 years?

-56.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Cumberland Pharmaceuticals does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Cumberland Pharmaceuticals's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Cumberland Pharmaceuticals's 1-year growth to the US Pharmaceuticals industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Cumberland Pharmaceuticals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Cumberland Pharmaceuticals has efficiently used its assets last year compared to the US Pharmaceuticals industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Cumberland Pharmaceuticals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Cumberland Pharmaceuticals's financial position?


Financial Position Analysis

Cumberland Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Cumberland Pharmaceuticals's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Cumberland Pharmaceuticals's level of debt (37.3%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Cumberland Pharmaceuticals's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.6x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Cumberland Pharmaceuticals has sufficient cash runway for more than 3 years based on current free cash flow.

Cumberland Pharmaceuticals has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 19.9% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Cumberland Pharmaceuticals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Cumberland Pharmaceuticals's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Cumberland Pharmaceuticals has not reported any payouts.

Unable to verify if Cumberland Pharmaceuticals's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Cumberland Pharmaceuticals has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Cumberland Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

A. Kazimi (61yo)

20.6yrs

Tenure

US$1,477,450

Compensation

Mr. A. J. Kazimi, MBA founded Cumberland Pharmaceuticals Inc. in 1999 and has been its Chairman and Chief Executive Officer since 1999. Mr. Kazimi serves as the President of Cumberland Pharmaceuticals, Inc ...


CEO Compensation Analysis

A.'s remuneration is higher than average for companies of similar size in United States of America.

A.'s compensation has increased whilst company is loss making.


Management Age and Tenure

3.2yrs

Average Tenure

59.5yo

Average Age

The tenure for the Cumberland Pharmaceuticals management team is about average.


Board Age and Tenure

18.1yrs

Average Tenure

70yo

Average Age

The average tenure for the Cumberland Pharmaceuticals board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$1,77631 Aug 18
Michael Bonner
EntityIndividual
Role
Chief Financial Officer
CFO and Senior Director of Finance & Accounting
Shares300
Max PriceUS$5.92
BuyUS$62431 Aug 18
Michael Bonner
EntityIndividual
Role
Chief Financial Officer
CFO and Senior Director of Finance & Accounting
Shares100
Max PriceUS$6.24

Ownership Breakdown


Management Team

  • A. Kazimi (61yo)

    Founder

    • Tenure: 20.6yrs
    • Compensation: US$1.48m
  • Leo Pavliv (58yo)

    Executive VP of Operations & Chief Development Officer

    • Tenure: 0.0yrs
    • Compensation: US$639.95k
  • Martin Cearnal (74yo)

    Executive VP of Marketing & Sales

    • Tenure: 15.6yrs
    • Compensation: US$413.50k
  • James Herman (64yo)

    Senior VP of National Accounts & Chief Compliance Officer

    • Tenure: 2.8yrs
    • Compensation: US$315.10k
  • Michael Bonner (42yo)

    CFO and Senior Director of Finance & Accounting

    • Tenure: 3.5yrs
    • Compensation: US$241.75k
  • Adam Mostafa (39yo)

    MD & Consultant

    • Tenure: 0.5yrs
  • Erin Smith

    Senior Corporate Relations Associate

    • Tenure: 0.0yrs

Board Members

  • Joe Williams (62yo)

    Member of Pharmaceutical Advisory Board

    • Tenure: 0.0yrs
  • Joey Jacobs (66yo)

    Lead Independent Director

    • Tenure: 0.0yrs
    • Compensation: US$93.50k
  • Jim Jones (70yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$66.70k
  • A. Kazimi (61yo)

    Founder

    • Tenure: 20.6yrs
    • Compensation: US$1.48m
  • Bob Roberts (78yo)

    Member of Medical Advisory Board

    • Tenure: 0.0yrs
  • Gordon Bernard (67yo)

    Chairman of Medical Advisory Board & Independent Director

    • Tenure: 0.0yrs
    • Compensation: US$101.70k
  • J. Hix (72yo)

    Member of Pharmaceutical Advisory Board

    • Tenure: 0.0yrs
    • Compensation: US$233.65k
  • Martin Cearnal (74yo)

    Executive VP of Marketing & Sales

    • Tenure: 15.6yrs
    • Compensation: US$413.50k
  • David Warrell

    Member of Medical Advisory Board

    • Tenure: 0.0yrs
  • Jon Griggs (84yo)

    Independent Director & Member of Pharmaceutical Advisory Board

    • Tenure: 20.6yrs
    • Compensation: US$66.70k

Company Information

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


Key Information

  • Name: Cumberland Pharmaceuticals Inc.
  • Ticker: CPIX
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$82.557m
  • Shares outstanding: 15.37m
  • Website: https://www.cumberlandpharma.com

Number of Employees


Location

  • Cumberland Pharmaceuticals Inc.
  • 2525 West End Avenue
  • Suite 950
  • Nashville
  • Tennessee
  • 37203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPIXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2009
CBJDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2009

Biography

Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, focuses on the acquisition, development, and commercialization of prescription products for hospital acute care, gastroenterology, and o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 00:04
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.