Overall Score

Revenue Model

ETON generates revenue from a concentrated specialty pharmaceutical portfolio, which supports a straightforward commercial model.

TTM revenue per share is 3.82 and gross margin remains healthy at 57.9%, indicating a profitable product mix.

Valuation remains rich at 15.9x sales, suggesting the business model is being priced for continued execution.

Profitability

TTM net margin is 12.0% and operating margin is 15.4%, showing solid profitability for a small-cap pharma business.

Return on invested capital is 20.4% and return on equity is 40.1%, indicating efficient capital use.

Cash generation is strong relative to capex, with free cash flow to operating cash flow at 97.3%.

Balance Sheet Cash Flow

Liquidity is adequate with a current ratio of 1.52 and quick ratio of 1.30.

Net debt remains modest at 0.12x EBITDA, so leverage is not a major constraint.

Cash conversion is acceptable, but free cash flow yield is only 0.9% and the company trades at over 114x free cash flow.

Operating Efficiency

Asset turnover is 0.91x and fixed asset turnover is very high, reflecting a capital-light operating model.

Working capital management is mixed, with days sales outstanding at 86.0 and days inventory outstanding at 83.2.

The cash conversion cycle is 51.1 days, which is manageable but not especially tight for a specialty pharma company.