Eton Pharmaceuticals, Inc.
$28.86
+5.3%Eton Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on developing and commercializing pharmaceutical products for rare diseases. The company offers Biorphen, a phenylephrine injection for the treatment of clinically important hypotension resulting primarily from vasodilation in the setting of anesthesia; Carglumic Acid for the treatment of acute and chronic hyperammonemia due to N-acetylglutamate Synthase deficiency; and Rezipres, a ready-to-use formulation of a molecule that is indicated for the treatment of clinically important hypotension occurring in the setting of anesthesia. It also offers Alkindi Sprinkle, a replacement therapy for adrenocortical insufficiency in children under 17 years of age; EPRONTIA, a liquid formulation of topiramate; and Alaway Preservative Free, a preservative-free ophthalmic product to treat allergic conjunctivitis. In addition, the company develops Zonisamide Oral Suspension for the treatment of partial on-set seizures; Lamotrigine for Oral Suspension for the treatment of partial on-set seizures; cysteine injection; dehydrated alcohol injection; and Zeneo hydrocortisone autoinjector. Eton Pharmaceuticals, Inc. was incorporated in 2017 and is based in Deer Park, Illinois.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -169.8).
Valuation inputs: P/E -169.8, earnings yield N/A, momentum +5.3%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -17.6%, ROIC +0.1%).
Profitability stack: net margin -5.8%, ROE -17.6%, ROIC +0.1%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +71.6%, momentum +5.3%, net margin -5.8%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Eton Pharmaceuticals, Inc. Market vs Earnings Trajectory
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Eton Pharmaceuticals, Inc. Fair Value Envelope
Eton Pharmaceuticals, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Eton Pharmaceuticals, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Eton Pharmaceuticals, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Positive working capital, but relatively tight. The company should monitor cash flow carefully.
Asset Composition
Balanced asset mix between current and non-current assets, typical of many stable businesses.
Eton Pharmaceuticals, Inc. Street Expectations Map
Wall Street analysts project that ETON stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 57.00, with estimates ranging from a low of 57.00 to a high of 57.00.
The consensus 1-year price target stands at 57.00, with estimates ranging from a low of 57.00 to a high of 57.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Eton Pharmaceuticals, Inc. Insider Positioning
During the last 12 months, insiders have purchased $79K and sold $6.09M worth of ETON shares, resulting in $6.01M of net selling activity.
3 Months
0
0.00
152.8K
4.92M
-4.9M
-$4.92M
3-6 Months
0
0.00
0
0.00
+0
+$0
6-9 Months
0
0.00
0
0.00
+0
+$0
9-12 Months
5.0K
79.12K
75.7K
1.18M
-1.1M
-$1.10M
Top Buyers
Opaleye Management Inc.
10 Percent Owner
$79K
Top Sellers
Brynjelsen Sean
Director, Officer: President & Ceo
$3.82M
Krempa David
Officer: Chief Business Officer
$1.60M
Gruber James R.
Officer: Chief Financial Officer
$674K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $6.01M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
3 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
eton Dividend History
Learning Layer
Related Guides
Build conviction on ETON by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.