(ETON) Eton Pharmaceuticals - Overview
Sector: Healthcare | Industry: Drug Manufacturers - Specialty & Generic | Exchange: NASDAQ (USA) | Market Cap: 893m USD | Total Return: 60.9% in 12m
Avg Turnover: 14.6M
Qual. Beats: -1
Rev. Trend: 94.2%
Qual. Beats: 1
Warnings
Share dilution 17.3% YoY
Interest Coverage Ratio 0.7 is critical
Altman Z'' -4.68 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Rs Leader, Idiosyncratic Leader
Eton Pharmaceuticals, Inc. (NASDAQ: ETON) is a commercial-stage pharmaceutical firm specializing in treatments for rare diseases. The company’s current portfolio includes FDA-approved therapies for conditions such as severe primary IGF-1 deficiency, adrenal insufficiency, Wilson disease, and various metabolic disorders including phenylketonuria (PKU). Its business model focuses on the acquisition and internal development of orphan drugs, which often benefit from seven years of market exclusivity upon approval under the Orphan Drug Act.
The company maintains a late-stage pipeline targeting unmet needs in neonatal diabetes, diabetes insipidus, and adrenal crisis management. By focusing on niche patient populations, rare disease companies can often utilize a smaller, more specialized sales force compared to traditional primary care pharmaceutical providers. Investors looking for deeper insights into these specialty pharmaceutical trends may find further useful data on ValueRay. Eton Pharmaceuticals is headquartered in Deer Park, Illinois, and has been operating as a public entity since its incorporation in 2017.
- Expansion of rare disease portfolio drives organic revenue and margin growth
- FDA approval of ZENEO hydrocortisone autoinjector provides significant valuation catalyst
- Sales performance of Alkindi Sprinkle determines short-term cash flow stability
- Late-stage pipeline candidates ET-400 and ET-600 reduce dependency on existing products
- Strategic acquisitions of orphan drug assets influence long-term capital allocation efficiency
| Net Income: -1.48m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA 9.22 > 1.0 |
| NWC/Revenue: 10.43% < 20% (prev 50.92%; Δ -40.50% < -1%) |
| CFO/TA 0.16 > 3% & CFO 15.8m > Net Income -1.48m |
| Net Debt (11.5m) to EBITDA (6.20m): 1.86 < 3 |
| Current Ratio: 1.21 > 1.5 & < 3 |
| Outstanding Shares: last quarter (31.5m) vs 12m ago 17.34% < -2% |
| Gross Margin: 54.77% > 18% (prev 0.58%; Δ 5.42k% > 0.5%) |
| Asset Turnover: 95.67% > 50% (prev 57.51%; Δ 38.16% > 0%) |
| Interest Coverage Ratio: 0.73 > 6 (EBITDA TTM 6.20m / Interest Expense TTM 2.78m) |
| A: 0.09 (Total Current Assets 53.2m - Total Current Liabilities 44.2m) / Total Assets 97.7m |
| B: -1.14 (Retained Earnings -110.9m / Total Assets 97.7m) |
| C: 0.02 (EBIT TTM 2.04m / Avg Total Assets 90.9m) |
| D: -1.65 (Book Value of Equity -110.9m / Total Liabilities 67.1m) |
| Altman-Z'' = -4.68 = D |
| DSRI: 0.45 (Receivables 13.4m/16.4m, Revenue 86.9m/48.3m) |
| GMI: 1.07 (GM 54.77% / 58.49%) |
| AQI: 1.11 (AQ_t 0.45 / AQ_t-1 0.40) |
| SGI: 1.80 (Revenue 86.9m / 48.3m) |
| TATA: -0.18 (NI -1.48m - CFO 15.8m) / TA 97.7m) |
| Beneish M = -2.96 (Cap -4..+1) = A |
As of May 30, 2026, the stock is trading at USD 30.45 with a total of 369,698 shares traded.
Over the past week, the price has changed by -13.00%,
over one month by +29.13%,
over three months by +79.22% and
over the past year by +60.94%.
Eton Pharmaceuticals has received a consensus analysts rating of 4.67. Therefore, it is recommended to buy ETON.
- StrongBuy: 2
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 42.7 | 40.1% |
P/E Forward = 47.8469
P/S = 10.2689
P/B = 29.1281
Revenue TTM = 86.9m USD
EBIT TTM = 2.04m USD
EBITDA TTM = 6.20m USD
Long Term Debt = 18.9m USD (from longTermDebt, last quarter)
Short Term Debt = 11.8m USD (from shortTermDebt, last quarter)
Debt = 31.2m USD (corrected: LT Debt 18.9m + ST Debt 11.8m) + Leases 440k
Net Debt = 11.5m USD (calculated: Debt 31.2m - CCE 19.7m)
Enterprise Value = 904.2m USD (892.7m + Debt 31.2m - CCE 19.7m)
Interest Coverage Ratio = 0.73 (Ebit TTM 2.04m / Interest Expense TTM 2.78m)
EV/FCF = 58.60x (Enterprise Value 904.2m / FCF TTM 15.4m)
FCF Yield = 1.71% (FCF TTM 15.4m / Enterprise Value 904.2m)
FCF Margin = 17.75% (FCF TTM 15.4m / Revenue TTM 86.9m)
Net Margin = -1.70% (Net Income TTM -1.48m / Revenue TTM 86.9m)
Gross Margin = 54.77% ((Revenue TTM 86.9m - Cost of Revenue TTM 39.3m) / Revenue TTM)
Gross Margin QoQ = 60.72% (prev 61.56%)
Tobins Q-Ratio = 9.25 (Enterprise Value 904.2m / Total Assets 97.7m)
Interest Expense / Debt = 8.91% (Interest Expense 2.78m / Debt 31.2m)
Taxrate = 1.27% (20.0k / 1.57m)
NOPAT = 2.01m (EBIT 2.04m * (1 - 1.27%))
Current Ratio = 1.21 (Total Current Assets 53.2m / Total Current Liabilities 44.2m)
Debt / Equity = 1.02 (Debt 31.2m / totalStockholderEquity, last quarter 30.6m)
Debt / EBITDA = 1.86 (Net Debt 11.5m / EBITDA 6.20m)
Debt / FCF = 0.75 (Net Debt 11.5m / FCF TTM 15.4m)
Total Stockholder Equity = 26.0m (last 4 quarters mean from totalStockholderEquity)
RoA = -1.62% (Net Income -1.48m / Total Assets 97.7m)
RoE = -1.08% (Net Income TTM -1.48m / Total Stockholder Equity 136.9m)
RoCE = 1.31% (EBIT 2.04m / Capital Employed (Equity 136.9m + L.T.Debt 18.9m))
RoIC = 4.41% (NOPAT 2.01m / Invested Capital 45.7m)
WACC = 8.27% (E(892.7m)/V(923.9m) * Re(8.25%) + D(31.2m)/V(923.9m) * Rd(8.91%) * (1-Tc(0.01)))
Discount Rate = 8.25% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 94.39 | Cagr: 9.46%
[DCF] Terminal Value 77.97% ; FCFF base≈11.5m ; Y1≈13.1m ; Y5≈19.3m
[DCF] Fair Price = 10.21 (EV 291.1m - Net Debt 11.5m = Equity 279.6m / Shares 27.4m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -2.71 | # QB: -1
Revenue Correlation: 94.20 | Revenue CAGR: 51.55% | SUE: 2.01 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.19 | Chg30d=-5.00% | Revisions=-20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=0.31 | Chg30d=+34.78% | Revisions=+20% | Analysts=1
EPS current Year (2026-12-31): EPS=1.01 | Chg30d=+20.24% | Revisions=+20% | GrowthEPS=+215.6% | GrowthRev=+50.7%
EPS next Year (2027-12-31): EPS=1.88 | Chg30d=+20.51% | Revisions=+20% | GrowthEPS=+86.1% | GrowthRev=+51.4%