China Pharma Holdings Inc. Common Stock (CPHI)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn consistent profits and can defend their turf. China Pharma Holdings fails the first test. In fiscal 2025, the year ended 2025-12-31, revenue was $4.1 million and net income was -$3.2 million, or diluted EPS -$0.74. That followed fiscal 2024, the year ended 2024-12-31, when revenue was $4.5 million and net loss was $4.7 million, and fiscal 2023, the year ended 2023-12-31, when revenue was $7.0 million and net loss was $3.1 million. Revenue is shrinking and losses are persistent. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $948,340 and net income was -$1.5 million, or diluted EPS -$0.04; that was a wider loss than fiscal Q2 2025, the quarter ended 2025-06-30, when net loss was $528,367 on revenue of $1.0 million. The company sells injectables and oral medicines in China, but with revenue below $5 million and no profits, I see no evidence of a durable moat. Financial health is poor. The data show trailing free cash flow of -$219,482, an Altman Z-score of 0.47, and a Piotroski F-score of 2/9. Debt is modest at D/E 0.11, and the shares trade below book at a FairStock P/B of 0.84 at the 2026-10-13 close of $0.75. But a low P/B with negative ROE of -20.99% and negative ROCE of -9.35% is a warning, not a bargain. The negative P/E of -1.79 simply reflects losses. Unless revenue stabilizes and cash burn stops, book value will erode. I would wait for evidence of profitability, not just a low price.

In plain English: China Pharma Holdings makes and sells generic and specialty medicines in China. The business looks weak: it has been losing money, revenue has been falling, and the latest quarter showed a larger loss. The price is not clearly cheap because the company is unprofitable, even though it trades below its accounting book value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer