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CPIX Stock Analysis - CUMBERLAND PHARMACEUTICALS INC AI Rating

CPIX Nasdaq Pharmaceutical Preparations TN CIK: 0001087294
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
SELL
75% Confidence

📊 CPIX Key Takeaways

Revenue: $44.5M
Net Margin: -6.4%
Free Cash Flow: $4.8M
Current Ratio: 1.01x
Debt/Equity: 0.00x
EPS: $-0.19
AI Rating: SELL with 75% confidence

Investment Thesis

Cumberland Pharmaceuticals is unprofitable with negative operating and net margins (-6.3% and -6.4% respectively), though revenue growth of 17.6% YoY shows some market traction. While the company generates positive free cash flow of $4.8M, weak liquidity (current ratio 1.01x) and continued negative returns on equity (-11.4%) indicate operational challenges that outweigh growth potential.

CPIX Strengths

  • + Revenue growth of 17.6% year-over-year demonstrates market demand and potential expansion
  • + Positive free cash flow of $4.8M with 10.9% FCF margin provides some financial flexibility
  • + Low leverage with 0.00x debt-to-equity ratio reduces financial distress risk
  • + Significant insider activity with 15 Form 4 filings suggests management engagement

CPIX Risks

  • ! Persistent unprofitability with negative net income of -$2.8M and net margin of -6.4%
  • ! Weak liquidity position with current ratio of 1.01x and quick ratio of 0.84x creates cash flow vulnerability
  • ! Negative returns on equity (-11.4%) and ROA (-3.7%) indicate inefficient asset utilization and shareholder value destruction
  • ! Negative interest coverage ratio of -5.6x reflects inability to cover obligations from operating results
  • ! Operating margin of -6.3% suggests structural profitability challenges despite revenue growth

Key Metrics to Watch

CPIX Financial Metrics

Revenue
$44.5M
Net Income
$-2.8M
EPS (Diluted)
$-0.19
Free Cash Flow
$4.8M
Total Assets
$76.8M
Cash Position
$11.4M

💡 AI Analyst Insight

CUMBERLAND PHARMACEUTICALS INC presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.

CPIX Profitability Ratios

Gross Margin N/A
Operating Margin -6.3%
Net Margin -6.4%
ROE -11.4%
ROA -3.7%
FCF Margin 10.9%

CPIX vs Healthcare Sector

How CUMBERLAND PHARMACEUTICALS INC compares to Healthcare sector averages

Net Margin
CPIX -6.4%
vs
Sector Avg 12.0%
CPIX Sector
ROE
CPIX -11.4%
vs
Sector Avg 15.0%
CPIX Sector
Current Ratio
CPIX 1.0x
vs
Sector Avg 2.0x
CPIX Sector
Debt/Equity
CPIX 0.0x
vs
Sector Avg 0.6x
CPIX Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CPIX Balance Sheet & Liquidity

Current Ratio
1.01x
Quick Ratio
0.84x
Debt/Equity
0.00x
Debt/Assets
68.1%
Interest Coverage
-5.63x
Long-term Debt
N/A

CPIX 5-Year Financial Trend

CPIX 5-year financial data: Year 2021: Revenue $35.8M, Net Income -$3.5M, EPS $-0.23. Year 2022: Revenue $40.7M, Net Income $166.8K, EPS $0.01. Year 2023: Revenue $42.0M, Net Income -$1.4M, EPS $-0.38. Year 2024: Revenue $39.6M, Net Income $192.2K, EPS $-0.44. Year 2025: Revenue $44.5M, Net Income -$1.9M, EPS $-0.46.
Revenue
Net Income
EPS (right axis)

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 Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
10.9%
Free cash flow / Revenue

CPIX Quarterly Performance

Quarterly financial performance data for CUMBERLAND PHARMACEUTICALS INC including revenue, net income, and earnings per share.
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.

CPIX Capital Allocation

Operating Cash Flow
$4.9M
Cash generated from operations
Stock Buybacks
$263.5K
Shares repurchased (TTM)
Capital Expenditures
$97.9K
Investment in assets
Dividends
None
No dividend program

CPIX SEC Filings

Access official SEC EDGAR filings for CUMBERLAND PHARMACEUTICALS INC (CIK: 0001087294)

📋 Recent SEC Filings

Date Form Document Action
Mar 20, 2026 4 xslF345X06/wk-form4_1774041843.xml View →
Mar 20, 2026 4 xslF345X06/wk-form4_1774041820.xml View →
Mar 20, 2026 4 xslF345X06/wk-form4_1774041759.xml View →
Mar 20, 2026 4 xslF345X06/wk-form4_1774041719.xml View →
Mar 20, 2026 4 xslF345X06/wk-form4_1774041699.xml View →

Frequently Asked Questions about CPIX

What is the AI rating for CPIX?

CUMBERLAND PHARMACEUTICALS INC (CPIX) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CPIX's key strengths?

Revenue growth of 17.6% year-over-year demonstrates market demand and potential expansion. Positive free cash flow of $4.8M with 10.9% FCF margin provides some financial flexibility.

What are the risks of investing in CPIX?

Persistent unprofitability with negative net income of -$2.8M and net margin of -6.4%. Weak liquidity position with current ratio of 1.01x and quick ratio of 0.84x creates cash flow vulnerability.

What is CPIX's revenue and growth?

CUMBERLAND PHARMACEUTICALS INC reported revenue of $44.5M.

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 $-0.19.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-31 | Powered by Claude AI