Fundamental analysis: Cumberland Pharmaceuticals Inc. (CPIX)

Awarener score: 5.6

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Average) and growth (Poor), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 4.5

Business has been shrinking. It's been weak when measured against peer companies.
Cumberland Pharmaceuticals Inc. business trend stability is run-of-the-mill. The higher the stability, the lower the risk. It looks somewhat better than rivals.

Margins score: 4.5

CPIX profit margins -on goods and services sold- are usually excellent. They stand better than most rival companies.
Business profit on sales tends to be very poor. It's similar to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually meagre. They remain rather normal in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be very poor in relation to total revenues. They're still slightly better than similar companies.
Profits -before income taxes- are usually meagre considering total sales, and remain similar to rivals.
Total net profit tends to be meagre when confronted to sales. Company stands similar to comparable firms.

Growth score: 1.3

Cumberland Pharmaceuticals Inc. profit growth -on goods and services sold- has been almost stagnant. It's been in a weak position compared to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 3.3

CPIX had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
Research and development expenses consume a moderate portion of revenues. It's almost average when measured against competitors.
The company hardly grows despite of research and development efforts. It stands in a weak position compared to rival companies.

Profitability score: 4.0

Cumberland Pharmaceuticals Inc. usually gets low returns on the resources it controls. It proves similar to peer firms.
The company normally gets low proceeds -on the resources directly invested in the business-. They remain close to average when compared to similar companies.
Profitability -in relation to owned resources- is usually lacking. It ranks similar to competitors.
In the past, got low returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's similar to comparable enterprises.

Usage of Funds score: 5.8

CPIX usually uses a modest portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments isn't too high. It stands similar to rival firms.
The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is below average when measured against industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company usually reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains excellent in relation to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands excellent in relation to rivals.
The company uses a modest portion of genuine fund generation to reward investors, which can probably be sustained. It still looks almost average when measured against competitors.

Balance Sheet score: 3.9

Cumberland Pharmaceuticals Inc. intangible assets (like brands and goodwill) represent a significant portion of resources controlled, according to accounting books. There could be significant difficulties in liquidating them if the company ever gets in financial distress. It happens to be weak when measured against peer companies.
The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be in a weak position compared to similar firms.
Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains slightly worse than rival firms.
Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks below average when measured against rivals.
For every dollar of short-term obligations, the company has enough dollars in cash and short-term receivables. It's lacking compared to peer firms.
For every dollar of short-term obligations, the company has almost another of cash and equivalents, which is slightly worse than similar enterprises.
Usually, sales are on somewhat more than three months credit. It still ranks weak when measured against peers.
Normally has more than six months of sales worth in inventory. It comes up as in a very weak position compared to competitors.
On average, it takes plenty of months from the purchase to charging customers. It happens to be worse than most peers.
On average pays suppliers many months after the purchase. It ranks great when measured against industry peers.
The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's a slight improvement compared to similar companies.
Has usually been losing money on the business, so net interest expenses must be paid by increasing borrowings, which is unsustainable in the long run. The situation is very risky for both creditors and shareholders, profitability must increase. It stands bottom tier against rival firms.
Business has usually been operated at a loss. Unless prospects improve, the company is no position to decrease loans taken levels but by additional shareholders' funding. Profitability must improve. It ranks last-in-rank when measured against comparable enterprises.
Revenues are quite good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks close to average when compared to similar firms.
Resource exploitation is slightly low when yearly sales are considered, business volume should be increased. This metric is normally tied to the industry where the firm belongs. It's still slightly better than peer companies.

Valuation score: 5.2

Cumberland Pharmaceuticals Inc. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains lacking compared to peers.
In the past twelve months, the company generated excellent free funds in relation to the stock price, which stands better than most similar companies.
The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still top tier when measured against industry firms.
In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
The company is somewhat indebted, loan repayment needs to be taken into account. It looks somewhat worse than similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks in good shape compared to rival firms.
The stock price is at or below the accounting book value. Unless profitability is really low, the stock may be selling a t a discount. Pay attention to the other key indicators for hints. The company remains well ranked against peer firms.
In the past twelve months, the operating business lost a lot of money. It happens to be below average when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown a very low earnings power ability when measured against the current stock price and financial position. Profitability is in dispute. It's still lacking compared to peer companies.

Total score: 4.1

Company at a glance: Cumberland Pharmaceuticals Inc. (CPIX)

Sector, industry: Healthcare, Drug Manufacturers—Specialty & Generic

Market Cap: 0.02 billions

Revenues TTM: 0.04 billions

Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, focuses on the acquisition, development, and commercialization of prescription products for hospital acute care, gastroenterology, rheumatology, and oncology in the United States and internationally. The company offers Acetadote, an injection for the treatment of acetaminophen poisoning; Caldolor, an injection for the treatment of pain and fever; Kristalose, a prescription laxative oral solution for the treatment of chronic and acute constipation; Omeclamox-Pak for the treatment of Helicobacter pylori infection and duodenal ulcer disease; Vaprisol, an injection for treating euvolemic and hypervolemic hyponatremia; and Vibativ, an injection for the treatment of certain serious bacterial infections, including hospital-acquired and ventilator-associated bacterial pneumonia, as well as complicated skin and skin structure infections. It also develops RediTrex injection for the treatment of active rheumatoid, juvenile idiopathic, and severe psoriatic arthritis, as well as disabling psoriasis. In addition, the company is developing ifetroban, a product candidate that is in phase II clinical trial for the treatment of aspirin-exacerbated respiratory disease, systemic sclerosis, and duchenne muscular dystrophy; and has completed phase II clinical trial for the treatment of hepatorenal syndrome and portal hypertension. Further, it develops a clinical program for the use of ifetroban to treat progressive fibrosing interstitial lung diseases; and a product candidate that is in Phase II clinical trial for cholesterol reducing agent to use in the hospital setting. The company was incorporated in 1999 and is headquartered in Nashville, Tennessee.