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.

Risk Analysis

Earnings are forecast to decline by an average of -9.6% per year for the next 3 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Does not have a meaningful market cap ($81M)



Snowflake Analysis

Excellent balance sheet and overvalued.


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

Stable Share Price: CPIX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

CPIX

2.2%

US Pharmaceuticals

1.1%

US Market


1 Year Return

-12.0%

CPIX

0.5%

US Pharmaceuticals

17.8%

US Market

Return vs Industry: CPIX underperformed the US Pharmaceuticals industry which returned 0.5% over the past year.

Return vs Market: CPIX underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

CPIXIndustryMarket
7 Day2.9%2.2%1.1%
30 Day-7.2%4.8%1.4%
90 Day3.3%6.5%3.9%
1 Year-12.0%-12.0%3.0%0.5%20.3%17.8%
3 Year-3.8%-3.8%29.7%20.4%44.8%35.4%
5 Year-0.7%-0.7%27.7%14.3%71.3%52.4%

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 compared to its fair value and its price relative to the market?

1.56x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CPIX's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CPIX's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CPIX is unprofitable, so we can't compare its PE Ratio to the Pharmaceuticals industry average.

PE vs Market: CPIX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CPIX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CPIX is good value based on its PB Ratio (1.6x) compared to the US Pharmaceuticals industry average (3.1x).


Next Steps

Future Growth

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

-9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPIX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CPIX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CPIX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CPIX's revenue (2.5% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: CPIX's revenue (2.5% 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 CPIX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Cumberland Pharmaceuticals performed over the past 5 years?

-55.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPIX is currently unprofitable.

Growing Profit Margin: CPIX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CPIX is unprofitable, and losses have increased over the past 5 years at a rate of -55.2% per year.

Accelerating Growth: Unable to compare CPIX's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CPIX is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (21.3%).


Return on Equity

High ROE: CPIX has a negative Return on Equity (-9.3%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cumberland Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: CPIX's short term assets ($49.4M) exceed its short term liabilities ($21.1M).

Long Term Liabilities: CPIX's short term assets ($49.4M) exceed its long term liabilities ($31.0M).


Debt to Equity History and Analysis

Debt Level: CPIX's debt to equity ratio (38.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CPIX's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: CPIX has a low level of unsold assets or inventory.

Debt Coverage by Assets: CPIX's debt is covered by short term assets (assets are 2.5x 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.

Stable Cash Runway: Whilst unprofitable CPIX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CPIX is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 30.5% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if CPIX'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 CPIX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

A. Kazimi (61yo)

20.9yrs

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

Compensation vs Market: A.'s total compensation ($USD1.48M) is above average for companies of similar size in the US market ($USD529.29K).

Compensation vs Earnings: A.'s compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.5yrs

Average Tenure

59.5yo

Average Age

Experienced Management: CPIX's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

12.9yrs

Average Tenure

70yo

Average Age

Experienced Board: CPIX's board of directors are seasoned and experienced ( 12.9 years average tenure).


Insider Trading

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.


Management Team

  • A. Kazimi (61yo)

    Founder

    • Tenure: 20.9yrs
    • Compensation: US$1.48m
  • Leo Pavliv (58yo)

    Executive VP of Operations & Chief Development Officer

    • Tenure: 0yrs
    • Compensation: US$639.95k
  • Martin Cearnal (74yo)

    Executive VP of Marketing & Sales

    • Tenure: 15.9yrs
    • Compensation: US$413.50k
  • James Herman (64yo)

    Senior VP of National Accounts & Chief Compliance Officer

    • Tenure: 3.2yrs
    • Compensation: US$315.10k
  • Michael Bonner (42yo)

    CFO and Senior Director of Finance & Accounting

    • Tenure: 3.8yrs
    • Compensation: US$241.75k
  • Adam Mostafa (39yo)

    MD & Consultant

    • Tenure: 0.8yrs
  • Erin Gull

    Senior Corporate Relations Associate

    • Tenure: 0yrs

Board Members

  • Joe Williams (62yo)

    Member of Pharmaceutical Advisory Board

    • Tenure: 0yrs
  • Joey Jacobs (66yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$93.50k
  • Jim Jones (70yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$66.70k
  • A. Kazimi (61yo)

    Founder

    • Tenure: 20.9yrs
    • Compensation: US$1.48m
  • Bob Roberts (78yo)

    Member of Medical Advisory Board

    • Tenure: 0yrs
  • Gordon Bernard (67yo)

    Chairman of Medical Advisory Board & Independent Director

    • Tenure: 0yrs
    • Compensation: US$101.70k
  • J. Hix (72yo)

    Member of Pharmaceutical Advisory Board

    • Tenure: 0yrs
    • Compensation: US$233.65k
  • Martin Cearnal (74yo)

    Executive VP of Marketing & Sales

    • Tenure: 15.9yrs
    • Compensation: US$413.50k
  • David Warrell

    Member of Medical Advisory Board

    • Tenure: 0yrs
  • Jon Griggs (84yo)

    Independent Director & Member of Pharmaceutical Advisory Board

    • Tenure: 9.9yrs
    • 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$80.627m
  • Shares outstanding: 15.18m
  • 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 Analysis2019/12/11 00:12
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.