Eton Pharmaceuticals (ETON) AI Stock Analysis

• Market Cap: $363.91M
• Dividend Yield: N/A
• Average Volume (3M): 429.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: 40.88%
• EPS Growth: -579.73%
• Country: US
• Employees: 31
• Sector: Healthcare
• Sector Strength: 47
• Industry: Biotechnology
• EPS (TTM): -0.06
• Shares Outstanding: 26,817,535
• 10 Day Avg. Volume: 439,321
• 30 Day Avg. Volume: 429,618
• PEG Ratio: -0.03
• Price to Book (P/B): 5.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 34.88
• Enterprise Value/Market Cap: 0.17
• Enterprise Value/Revenue: 0.40
• Enterprise Value/Gross Profit: 2.16
• Enterprise Value/Ebitda: -5.01
• 1Y Price Target: $29.67
• Price Target Upside: 118.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 56 Neutral
• Price Target: $16.00 ▲(17.91%Upside)

Eton Pharmaceuticals' overall score reflects strong revenue growth and promising product launches, yet significant profitability challenges persist. Technical indicators suggest bearish momentum, and valuation metrics are unattractive due to negative earnings.

Positive Factors

FDA Approval

Khindivi received FDA approval as replacement therapy in pediatric patients 5 years of age and older with adrenal insufficiency.

Product Launch

The management plans to launch Khindivi immediately and has shown strong commercial execution.

Revenue Growth

Eton Pharmaceuticals has reported 16 sequential quarters of growth, with a 4Q top-line beat and 12% sequential growth.

Negative Factors

Financial Guidance

Management provided conservative financial guidance of $80M in annual revenue run-rate by year-end 2025, suggesting potential for exceeding current expectations.

Market Expansion Challenges

There is potential for Increlex's SPIGFD population expansion through U.S./EU label unification, increasing the number of treatable patients.

Product Development

The company is developing ET-700 to offer an extended-release formulation of zinc, targeting a significant patient population with potential for high revenue.

Eton Pharmaceuticals Business Overview & Revenue Model

Company Description

Eton Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on developing and commercializing innovative treatments for rare and orphan diseases. The company operates primarily in the healthcare sector, delivering high-value therapeutic solutions that target unmet medical needs. Eton Pharmaceuticals' core products include a portfolio of FDA-approved and development-stage drugs designed to address conditions within neurology, endocrinology, and other niche medical fields.

How the Company Makes Money

Eton Pharmaceuticals generates revenue through the sale of its pharmaceutical products, which are distributed to hospitals, clinics, and healthcare providers. Key revenue streams include sales from its portfolio of FDA-approved drugs, licensing agreements with other pharmaceutical companies, and collaborative partnerships that may include milestone payments and royalties from marketed products. The company strategically focuses on niche markets with limited competition, allowing it to establish a strong presence and command premium pricing for its unique therapies. Significant partnerships with research institutions and biotech firms also contribute to its earnings by expanding its product pipeline and enhancing development capabilities.

Eton Pharmaceuticals Financial Statement Overview

Summary

Eton Pharmaceuticals exhibits strong revenue growth, but profitability remains a concern with negative EBIT and net income. The balance sheet is stable with low leverage, but high liabilities pose a risk to financial flexibility. Improved cash flow management is noted, though conversion of earnings into cash needs enhancement.

Income Statement

Eton Pharmaceuticals has shown significant revenue growth, with a notable increase from $21.3 million in 2022 to $39 million in 2024. However, profitability remains a concern as indicated by negative EBIT and net income, which suggests challenges in cost management or market competition.

Balance Sheet

The balance sheet reveals a relatively stable equity base, with stockholders' equity increasing to $24.4 million in 2024. The debt-to-equity ratio is low, indicating low leverage, but the company faces high liabilities compared to assets, which may impact future financial flexibility.

Cash Flow

Positive free cash flow in 2024, at $943,000, marks an improvement compared to previous years, suggesting better cash management. However, the operating cash flow to net income ratio is low, indicating that net income is not translating effectively into cash flow.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
48.33M	39.01M	31.64M	21.25M	21.83M	39.00K
	Gross Profit
28.27M	23.41M	21.06M	14.32M	19.21M	-247.00K
	EBITDA
-1.35M	-1.45M	-291.00K	-6.49M	-1.12M	-26.46M
	Net Income
-4.58M	-3.82M	-936.00K	-9.78M	-2.96M	-28.83M
Balance Sheet		Total Assets
84.03M	76.12M	31.74M	25.03M	27.46M	26.32M
	Cash, Cash Equivalents and Short-Term Investments
17.42M	14.94M	21.39M	16.30M	14.41M	21.30M
	Total Debt
87.00K	29.92M	5.40M	6.52M	6.70M	7.14M
	Total Liabilities
59.58M	51.70M	16.26M	11.95M	9.84M	10.66M
	Stockholders Equity
24.45M	24.43M	15.48M	13.08M	17.63M	15.66M
Cash Flow		Free Cash Flow
-732.00K	943.00K	6.04M	2.03M	-7.98M	-22.40M
	Operating Cash Flow
5.53M	969.00K	6.82M	4.82M	-4.72M	-22.35M
	Investing Cash Flow
-36.26M	-40.01M	-775.00K	-2.79M	-2.56M	-50.00K
	Financing Cash Flow
33.37M	32.59M	-957.00K	-134.00K	391.00K	31.63M

Eton Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETON, the sentiment is Negative. The current price of 13.57 is below the 20-day moving average (MA) of 16.45, below the 50-day MA of 16.49, and above the 200-day MA of 12.84, indicating a neutral trend. The MACD of -1.08 indicates Positive momentum. The RSI at 26.13 is Positive, neither overbought nor oversold. The STOCH value of 11.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ETON.

Eton Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRTX	61 Neutral	$305.13M	―	40.36%	―	12.43%	91.67%
ETON	56 Neutral	$363.91M	―	-22.95%	―	40.88%	-579.73%
BNTC	52 Neutral	$383.52M	―	-48.57%	―	-100.00%	83.98%
ABSI	52 Neutral	$355.89M	―	-48.98%	―	-9.95%	20.78%
Sector *	51 Neutral	$7.34B	0.29	-60.38%	2.38%	17.46%	1.71%
MREO	43 Neutral	$453.15M	―	-92.00%	―	―	―
TECX	42 Neutral	$369.90M	―	-30.10%	―	―	-343.40%

Eton Pharmaceuticals Corporate Events

Eton Pharmaceuticals Holds Annual Stockholders Meeting

On June 10, 2025, Eton Pharmaceuticals, Inc. held its Annual Meeting of Stockholders virtually. During the meeting, stockholders elected Paul V. Maier as a director for a three-year term and ratified Crowe LLP as the independent registered public accounting firm for the year ending December 31, 2025. These decisions are expected to influence the company’s governance and financial oversight positively.

The most recent analyst rating on (ETON) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Eton Pharmaceuticals stock, see the ETON Stock Forecast page.

Eton Pharmaceuticals Gains FDA Approval for KHINDIVI

On May 28, 2025, Eton Pharmaceuticals announced the FDA approval of KHINDIVI, the first and only FDA-approved hydrocortisone oral solution for pediatric patients with adrenocortical insufficiency. This approval marks a significant advancement for patients and caregivers, offering a more precise and convenient dosing option. The commercial launch is expected in early June, with projected peak sales of KHINDIVI and ALKINDI SPRINKLE exceeding $50 million annually. The introduction of KHINDIVI is expected to enhance Eton’s market position in the rare disease treatment sector, providing a critical new tool for pediatric endocrinologists and improving treatment outcomes for patients.

The most recent analyst rating on (ETON) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Eton Pharmaceuticals stock, see the ETON Stock Forecast page.