Catalyst Pharmaceuticals Inc. Common Stock (CPRX)

FairStock Score: 70/100 — STEADY

Key Financials

Strengths

• Generates $171 million in annual free cash flow (5.3% yield on market cap)
• High return on equity of 25.5% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.00, providing financial flexibility
• Altman Z-Score of 14.8 confirms minimal bankruptcy risk and strong solvency
• FairStock composite score of 70/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Trades significantly above Graham Number ($17) with negative 55% margin of safety—limited downside protection

AI Analysis

Catalyst Pharmaceuticals Inc. Common Stock is a small-cap healthcare company valued at $3.3 billion. The business generates $589 million in annual revenue with a 8.9% net margin and $171 million in free cash flow. From a quality standpoint, Catalyst shows Altman Z-Score of 14.8 confirms fortress-level solvency and strong 25% ROE. On valuation, the stock is reasonably priced at 16.5x earnings, with trades above its Graham Number with a negative 55% margin. Growth dynamics show revenue growing at 7.6% and profit growth of -5.8%. Our composite FairStock Score of 70/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $171 million in annual free cash flow (5.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer