📊 CPIX Key Takeaways
Is Cumberland Pharmaceuticals Inc. (CPIX) a Good Investment?
Cumberland Pharmaceuticals exhibits revenue growth momentum of 17.6% YoY and positive free cash flow, suggesting some commercial viability. However, the company faces material challenges: severe operating losses (-34.3% margin), tightening liquidity (current ratio 0.95x), and a revenue base of only $9.1M insufficient to support its cost structure, raising sustainability concerns.
Cumberland Pharmaceuticals shows improving top-line momentum, with revenue up 17.6% year over year and positive operating and free cash flow, which suggests the business is generating real cash despite reported losses. However, profitability remains weak with negative operating and net margins, returns on capital are negative, and liquidity is only marginally adequate, so the fundamentals support a cautious rather than aggressive stance.
Cumberland Pharmaceuticals Inc. Key Strengths (CPIX)
- Revenue growth of 17.6% YoY demonstrates market acceptance and commercial traction
- Positive operating cash flow of $387K despite significant net losses
- Zero long-term debt eliminates refinancing and financial leverage risks
- Cash position of $11.0M provides near-term operational runway
- Improving EPS trend (+58.7% YoY indicates some cost management progress)
- Revenue growth is strong at 17.6% year over year, indicating improving commercial traction.
- The company generated positive operating cash flow of $4.93M and free cash flow of $4.83M, showing better cash earnings than net income suggests.
- Balance sheet leverage appears conservative with 0.00x debt-to-equity and a meaningful cash balance of $11.44M.
CPIX Stock Risks: Cumberland Pharmaceuticals Inc. Investment Risks
- Operating margin of -34.3% and net margin of -36.0% indicate fundamental unprofitability
- Current ratio of 0.95x signals liquidity stress with current liabilities exceeding current assets
- Extremely small revenue base of $9.1M may be insufficient to achieve operating leverage
- Negative ROE (-15.2%) and ROA (-4.6%) demonstrate poor capital efficiency
- Narrow FCF margin of 4.2% provides minimal buffer against operational deterioration
- The business is still unprofitable, with negative operating income, net income, and negative returns on assets and equity.
- Liquidity is tight, with a current ratio of 1.01x and quick ratio of 0.84x, leaving limited cushion if working capital weakens.
- Negative interest coverage highlights weak earnings support for fixed obligations even if reported debt is low.
Key Metrics to Watch
- Timeline to operating profitability and gross margin trends
- Current ratio and working capital management for liquidity sustainability
- Revenue growth trajectory and customer concentration
- Operating expense reduction initiatives and burn rate
- Cash runway duration and funding requirements
- Sustained improvement in operating margin and net income
- Current ratio and operating cash flow consistency
Cumberland Pharmaceuticals Inc. (CPIX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.2% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CPIX Profit Margin, ROE & Profitability Analysis
CPIX vs Healthcare Sector: How Cumberland Pharmaceuticals Inc. Compares
How Cumberland Pharmaceuticals Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Cumberland Pharmaceuticals Inc. Stock Overvalued? CPIX Valuation Analysis 2026
Based on fundamental analysis, Cumberland Pharmaceuticals Inc. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Cumberland Pharmaceuticals Inc. Balance Sheet: CPIX Debt, Cash & Liquidity
CPIX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Cumberland Pharmaceuticals Inc.'s revenue has grown significantly by 24% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.46 indicates the company is currently unprofitable.
CPIX Revenue Growth, EPS Growth & YoY Performance
CPIX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $8.3M | -$1.4M | $-0.10 |
| Q2 2025 | $9.8M | $516.3K | $0.03 |
| Q1 2025 | $8.5M | $1.3M | $0.08 |
| Q3 2024 | $9.1M | $15.1K | $0.00 |
| Q2 2024 | $9.8M | $872.2K | $0.06 |
| Q1 2024 | $8.5M | $192.2K | $0.01 |
| Q3 2023 | $10.1M | $15.1K | N/A |
| Q2 2023 | $10.3M | $872.2K | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Cumberland Pharmaceuticals Inc. Dividends, Buybacks & Capital Allocation
CPIX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Cumberland Pharmaceuticals Inc. (CIK: 0001087294)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CPIX
What is the AI rating for CPIX?
Cumberland Pharmaceuticals Inc. (CPIX) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 60% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPIX's key strengths?
Claude: Revenue growth of 17.6% YoY demonstrates market acceptance and commercial traction. Positive operating cash flow of $387K despite significant net losses. ChatGPT: Revenue growth is strong at 17.6% year over year, indicating improving commercial traction.. The company generated positive operating cash flow of $4.93M and free cash flow of $4.83M, showing better cash earnings than net income suggests..
What are the risks of investing in CPIX?
Claude: Operating margin of -34.3% and net margin of -36.0% indicate fundamental unprofitability. Current ratio of 0.95x signals liquidity stress with current liabilities exceeding current assets. ChatGPT: The business is still unprofitable, with negative operating income, net income, and negative returns on assets and equity.. Liquidity is tight, with a current ratio of 1.01x and quick ratio of 0.84x, leaving limited cushion if working capital weakens..
What is CPIX's revenue and growth?
Cumberland Pharmaceuticals Inc. reported revenue of $9.1M.
Does CPIX pay dividends?
Cumberland Pharmaceuticals Inc. does not currently pay dividends.
Where can I find CPIX SEC filings?
Official SEC filings for Cumberland Pharmaceuticals Inc. (CIK: 0001087294) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CPIX's EPS?
Cumberland Pharmaceuticals Inc. has a diluted EPS of $-0.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CPIX's fundamental grade?
Based on our AI fundamental analysis in June 2026, Cumberland Pharmaceuticals Inc. has a C grade with 60% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CPIX stock overvalued or undervalued?
Valuation metrics for CPIX: ROE of -15.2% (sector avg: 15%), net margin of -36.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is CPIX's AI grade for 2026?
Our dual AI analysis gives Cumberland Pharmaceuticals Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CPIX's free cash flow?
Cumberland Pharmaceuticals Inc.'s operating cash flow is $387.0K, with capital expenditures of $0.0. FCF margin is 4.2%.
How does CPIX compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -36.0% (avg: 12%), ROE -15.2% (avg: 15%), current ratio 0.95 (avg: 2).