/
The outcome of patent litigation with Paragraph IV challengers is always uncertain and there can be no assurance to whether we will prevail in this litigation. At present, our pending case against Hetero is currently scheduled to be tried beginning on March 23, 2026.
$31.49
+$0.00 (+0.00%)
EOD Jul 17, 2026
Margins and capital returns are both well above average: 43.77% operating margin, ROIC at 22.35%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue up 19.8% YoY with margins expanding 4.1pp. However, free cash flow softened 13%, worth monitoring whether this is timing or structural.
Free cash flow declined 13% versus the prior year, cash generation momentum has weakened. ROIC dropped from 25.44% to 22.35%, capital efficiency is deteriorating.
18.2x earnings, 19.2x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$597M
▲ +19.8% YoY
Net Income (TTM)
$221M
▲ +30.8% YoY
Op. Margin
44.83%
▲ +4.1pp YoY
ROIC
20.51%
▼ -3.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$208M
▼ -12.8% YoY
Op. Cash Flow (TTM)
$208M
▼ -13.0% YoY
Net Debt
-$753M
Net Cash Position
Cash & Equiv.
$756M
5Y CAGR: +37.7%
5Y CAGR: +35.9%
Continue Research
At a P/E of 18.2 and a price-to-free-cash-flow of 19.2, Catalyst Pharmaceuticals (CPRX) trades below a two-stage DCF intrinsic value of about $88.72 per share, so at $31.49 the stock looks undervalued (181.7% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Catalyst Pharmaceuticals scores 73/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $88.72 per share for CPRX, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $66.54. At today's $31.49, that puts the stock about 181.7% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Catalyst Pharmaceuticals scores 73 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 44.8% operating margin and a 20.5% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
That depends on valuation and quality together, not either alone. CPRX currently trades below its estimated intrinsic value and scores 73/100 on quality (solid). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.