Cumberland Pharmaceuticals Inc. Common Stock (CPIX)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

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

I am a value investor in the tradition of Graham and Buffett, and I start with earning power and margin of safety. Cumberland is a specialty pharmaceutical company with a small portfolio of prescription products and just 88 employees. A $107.4 million market cap on fiscal 2025 (year ended 2025-12-31) revenue of $44.5 million might look modest, but the quality is poor. In fiscal 2025 (year ended 2025-12-31), the company reported a net loss of $2.8 million, or diluted EPS of -$0.19. In fiscal 2024 (year ended 2024-12-31), revenue was $37.9 million and net loss was $6.5 million, or diluted EPS -$0.46. In fiscal 2023 (year ended 2023-12-31), revenue was $39.6 million and net loss was $6.3 million, or diluted EPS -$0.44. More recently, in fiscal Q2 2026 (quarter ended 2026-06-30), revenue was $8.8 million and net loss was $4.3 million, or diluted EPS -$0.29. These are not the consistent earnings I want. FairStock's calculations show a negative P/E of -32.59, P/B of 6.18, ROE of -14.39%, ROCE of -2.91%, and FCF yield of -1.1%, with trailing free cash flow of -$1.2 million. The Altman Z-Score of 0.45 suggests financial distress risk. FairStock scores it 56/100. Debt/equity of 0.28 is manageable, and Piotroski 5/9 is middling, but I see no durable moat: small scale, no profits, and no dividend. FairStock assigns no Peter Lynch category because it has lost money in each of the last four years. At the $7.17 close on 2026-10-13, the market pays a high multiple of book for a loss-making business. I see no margin of safety.

In plain English: Cumberland Pharmaceuticals is a small specialty drug company that sells prescription medicines. The business looks weak: it has lost money in each of the last four years and is not generating positive cash flow. Based on the given numbers, the stock price looks expensive compared with the company's accounting value, so it does not look like a bargain.

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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 Q4 2025 10-K (period ended 2025-12-31) · fiscal Q3 2025 10-K (period ended 2025-09-30) · 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