Is CorMedix Still Attractive After 45% YTD Surge and Strong Cash Flow Outlook?

• Wondering if CorMedix at around $11.92 is still a smart buy after its big run, or if most of the upside has already been priced in? This breakdown will help you frame that question in valuation terms rather than hype.
• The stock has climbed 1.5% over the last week, 18.3% in the last month, an impressive 45.0% year to date, and 201.0% over three years. This naturally raises the question of whether the market is now getting ahead of itself or just starting to catch up.
• Recent attention around CorMedix has focused on its progress bringing its lead infection prevention therapy to market and the potential commercial ramp in hospital settings. This has sharpened investor focus on long term revenue and margin expansion. At the same time, regulatory milestones and partnership chatter have fueled speculation that future cash flows could be far higher than what past price action alone might suggest.
• On our valuation framework, CorMedix scores a strong 5 out of 6 for being undervalued across multiple checks. Next we will unpack what that actually means across different valuation approaches, before finishing with a more holistic way to think about what the market may be missing.

CorMedix delivered 34.4% returns over the last year. See how this stacks up to the rest of the Pharmaceuticals industry.

Approach 1: CorMedix Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model estimates what a company is worth by projecting the cash it can generate in the future and discounting those cash flows back to today in dollar terms. For CorMedix, the 2 Stage Free Cash Flow to Equity model starts with last twelve month free cash flow of about $73.9 million, then layers on analyst forecasts and longer term extrapolations by Simply Wall St.

Analysts see free cash flow rising into the mid to low $200 million range over the next decade, with projections such as about $225.8 million in 2026 and around $238.9 million by 2035, all discounted back to present value. Aggregating these discounted cash flows, the model arrives at an estimated intrinsic value of roughly $63.07 per share.

Compared with a recent share price of about $11.92, this valuation suggests CorMedix may be trading at roughly an 81.1% discount to its DCF-derived fair value, indicating the market could be assigning a relatively low value to the company’s long term cash generation potential.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests CorMedix is undervalued by 81.1%. Track this in your watchlist or portfolio, or discover 918 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for CorMedix.

Approach 2: CorMedix Price vs Earnings

For a profitable company like CorMedix, the price to earnings (PE) ratio is a useful yardstick because it links what investors are paying directly to the profits the business is already generating. In general, faster growing, lower risk companies can justify a higher PE multiple, while slower growth or higher risk should translate into a lower, more conservative PE.

CorMedix currently trades on a PE of about 5.78x, which is well below both the Pharmaceuticals industry average of roughly 19.98x and a broader peer group average of around 33.60x. On the surface, that kind of discount can look like a clear bargain, but raw peer and industry comparisons do not always capture company specific growth prospects, profitability, or risk profile.

This is where Simply Wall St’s proprietary Fair Ratio becomes relevant. For CorMedix, the Fair PE Ratio is estimated at about 17.54x, which reflects its earnings growth outlook, industry, profit margins, market cap and risk characteristics. Because this framework normalizes for those factors, it is more tailored than a simple industry or peer comparison. Comparing this Fair Ratio of 17.54x with the current 5.78x suggests the market is pricing CorMedix at a substantial discount to what its fundamentals might justify.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1460 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your CorMedix Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, an easy tool on Simply Wall St’s Community page that lets you connect your view of CorMedix’s story to a set of future revenue, earnings and margin estimates. You can link those to a fair value, and then continuously compare that fair value to the current share price as news, earnings and guidance arrive, so you can decide when to buy or sell based on your own conviction. For example, one CorMedix Narrative might lean bullish, assuming robust demand for DefenCath, successful integration of Melinta and strong margin expansion to justify a fair value near $23. A more cautious Narrative could focus on regulatory, integration and pricing risks to support a fair value closer to $17. By seeing both side by side, you can quickly orient your own expectations instead of relying purely on a single target price.

Do you think there's more to the story for CorMedix? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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