NasdaqGM:ETON

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Eton Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing and commercializing pharmaceutical products. More Details


Snowflake Analysis

High growth potential and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ETON is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: ETON's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

-0.9%

ETON

-1.7%

US Pharmaceuticals

-0.5%

US Market


1 Year Return

17.4%

ETON

6.2%

US Pharmaceuticals

18.3%

US Market

Return vs Industry: ETON exceeded the US Pharmaceuticals industry which returned 6.5% over the past year.

Return vs Market: ETON underperformed the US Market which returned 19.1% over the past year.


Shareholder returns

ETONIndustryMarket
7 Day-0.9%-1.7%-0.5%
30 Day-3.7%0.7%3.6%
90 Day6.2%-2.3%5.6%
1 Year17.4%17.4%9.0%6.2%21.0%18.3%
3 Yearn/a26.3%17.1%45.2%35.6%
5 Yearn/a38.4%22.7%89.8%68.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Eton 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: ETON ($7.36) is trading below our estimate of fair value ($88.83)

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


Price To Earnings Ratio

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

PE vs Market: ETON 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 ETON's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ETON is overvalued based on its PB Ratio (111.3x) compared to the US Pharmaceuticals industry average (3.4x).


Next Steps

Future Growth

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

82.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETON is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: ETON is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ETON's is expected to become profitable in the next 3 years.

Revenue vs Market: ETON's revenue (77.3% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: ETON's revenue (77.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ETON's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Eton Pharmaceuticals performed over the past 5 years?

44.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: ETON is currently unprofitable.

Growing Profit Margin: ETON is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ETON's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: ETON is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (19.8%).


Return on Equity

High ROE: ETON has a negative Return on Equity (-1655.55%), as it is currently unprofitable.


Next Steps

Financial Health

How is Eton Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: ETON's short term assets ($9.8M) exceed its short term liabilities ($3.2M).

Long Term Liabilities: ETON's short term assets ($9.8M) exceed its long term liabilities ($6.8M).


Debt to Equity History and Analysis

Debt Level: ETON's debt to equity ratio (503.5%) is considered high.

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


Balance Sheet


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: ETON has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ETON has less than a year of cash runway if free cash flow continues to reduce at historical rates of 35.4% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate ETON'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 ETON's dividends per share have been stable in the past.

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


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Sean Brynjelsen (48 yo)

3.42yrs

Tenure

US$1,946,408

Compensation

Mr. Sean E. Brynjelsen has been the Chief Executive Officer at Eton Pharmaceuticals, Inc. since June 23, 2017 and serves as President and Director since June 2017. Mr. Brynjelsen served as Executive Vice P...


CEO Compensation Analysis

Compensation vs Market: Sean's total compensation ($USD1.95M) is above average for companies of similar size in the US market ($USD1.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sean Brynjelsen
President3.42yrsUS$1.95m4.32%
$ 7.7m
W. Troutman
CFO, Treasurer & Secretary3.33yrsUS$864.63k0.045%
$ 79.8k
Paul Stickler
Senior Vice President of Sales & Marketing0.50yrno datano data
Bharathi Devarakonda
Senior Vice President of Regulatory Affairs & Product Developmentno datano datano data
Ingrid Hoos
Senior Vice President of Scientific Affairs0.25yrno datano data
Scott Grossenbach
Vice President of Sales & Marketingno datano datano data
David Krempa
Vice President of Business Developmentno datano datano data

1.9yrs

Average Tenure

Experienced Management: ETON's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Sean Brynjelsen
President3.42yrsUS$1.95m4.32%
$ 7.7m
Paul Maier
Independent Director3.17yrsUS$128.20k0.14%
$ 255.7k
Charles Casamento
Independent Director3.42yrsUS$124.03k0.18%
$ 319.6k
Norbert Riedel
Independent Chairman2.17yrsUS$136.53k0.25%
$ 439.7k
Mark Baum
Director3.58yrsUS$115.70k3.18%
$ 5.7m

3.4yrs

Average Tenure

62yo

Average Age

Experienced Board: ETON's board of directors are considered experienced (3.4 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 been diluted in the past year, with total shares outstanding growing by 36%.


Top Shareholders

Company Information

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


Key Information

  • Name: Eton Pharmaceuticals, Inc.
  • Ticker: ETON
  • Exchange: NasdaqGM
  • Founded: 2017
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$178.212m
  • Shares outstanding: 24.21m
  • Website: https://www.etonpharma.com

Number of Employees


Location

  • Eton Pharmaceuticals, Inc.
  • 21925 West Field Parkway
  • Suite 235
  • Deer Park
  • Illinois
  • 60010-7208
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ETONNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDNov 2018

Biography

Eton Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing and commercializing pharmaceutical products. The company offers Biorphen, a phenylephrine hydrochloride injection for t...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/23 00:31
End of Day Share Price2020/11/20 00:00
Earnings2020/09/30
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.