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ELTP Stock Analysis 2026 - ELITE PHARMACEUTICALS INC /NV/ AI Rating

ELTP OTC Pharmaceutical Preparations NJ CIK: 0001053369
Recently Updated • Analysis: Mar 24, 2026 • SEC Data: 2025-12-31
STRONG BUY
85% Conf
Pending
Analysis scheduled

📊 ELTP Key Takeaways

Revenue: $108.1M
Net Margin: 24.4%
Free Cash Flow: $14.1M
Current Ratio: 7.34x
Debt/Equity: 0.02x
EPS: $0.02
AI Rating: STRONG BUY with 85% confidence

Is ELTP a Good Investment? Thesis Analysis

Claude

Elite Pharmaceuticals demonstrates exceptional financial health with robust profitability metrics (50.2% gross margin, 36.0% operating margin, 24.4% net margin) and strong revenue growth of 48.4% YoY. The company maintains fortress-like balance sheet strength with minimal leverage (0.02x debt/equity), exceptional liquidity (7.34x current ratio), and substantial free cash flow generation of $14.1M, providing strategic flexibility for growth initiatives.

Why Buy ELTP? Key Strengths

Claude
  • + Exceptional profitability with 50.2% gross margin and 36.0% operating margin indicating strong pricing power and operational efficiency
  • + Strong revenue growth of 48.4% YoY demonstrates robust market demand and successful commercialization
  • + Fortress balance sheet with minimal debt (0.02x debt/equity), $21.1M cash, and 7.34x current ratio providing financial flexibility
  • + Outstanding returns on equity (32.9%) and assets (20.9%) indicating efficient capital deployment
  • + Robust free cash flow of $14.1M with 13.0% FCF margin supporting sustainability of operations and potential reinvestment

ELTP Investment Risks to Consider

Claude
  • ! Concerning EPS decline of -100% despite flat net income suggests significant equity dilution and share issuance
  • ! Flat net income growth (0.0% YoY) despite 48.4% revenue growth indicates margin compression or one-time charges requiring investigation
  • ! Limited insider activity with only 1 Form 4 filing in last 90 days suggests minimal insider confidence signals
  • ! Pharmaceutical sector regulatory and patent cliff risks could impact future revenue sustainability and profitability

Key Metrics to Watch

Claude
  • * Net income growth trajectory relative to revenue growth to assess margin sustainability
  • * EPS recovery and share dilution trends to understand capital structure changes
  • * Free cash flow consistency and conversion from operating cash flow
  • * Gross margin stability amid competitive pricing pressures
  • * Debt levels and capital allocation decisions for shareholder returns

ELTP Financial Metrics

Revenue
$108.1M
Net Income
$26.4M
EPS (Diluted)
$0.02
Free Cash Flow
$14.1M
Total Assets
$126.4M
Cash Position
$21.1M

💡 AI Analyst Insight

Strong liquidity with a 7.34x current ratio provides a solid financial cushion.

ELTP Profitability Ratios

Gross Margin 50.2%
Operating Margin 36.0%
Net Margin 24.4%
ROE 32.9%
ROA 20.9%
FCF Margin 13.0%

ELTP vs Healthcare Sector

How ELITE PHARMACEUTICALS INC /NV/ compares to Healthcare sector averages

Net Margin
ELTP 24.4%
vs
Sector Avg 12.0%
ELTP Sector
ROE
ELTP 32.9%
vs
Sector Avg 15.0%
ELTP Sector
Current Ratio
ELTP 7.3x
vs
Sector Avg 2.0x
ELTP Sector
Debt/Equity
ELTP 0.0x
vs
Sector Avg 0.6x
ELTP Sector

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

Is ELTP Overvalued or Undervalued?

Based on fundamental analysis, ELITE PHARMACEUTICALS INC /NV/ appears fundamentally strong relative to the Healthcare sector in 2026.

Return on Equity
32.9%
Sector avg: 15%
Net Profit Margin
24.4%
Sector avg: 12%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.02x
Sector avg: 0.6x

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.

ELTP Balance Sheet & Liquidity

Current Ratio
7.34x
Quick Ratio
5.44x
Debt/Equity
0.02x
Debt/Assets
36.5%
Interest Coverage
460.63x
Long-term Debt
$1.4M

ELTP 5-Year Financial Trend & Growth Analysis

ELTP 5-year financial data: Year 2022: Revenue $32.3M, Net Income $5.1M, EPS $0.00. Year 2023: Revenue $34.2M, Net Income $8.9M, EPS $0.01. Year 2024: Revenue $56.6M, Net Income $3.6M, EPS $0.00. Year 2025: Revenue $84.0M, Net Income $20.1M, EPS $0.02.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: ELITE PHARMACEUTICALS INC /NV/'s revenue has grown significantly by 161% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.02 reflects profitable operations.

ELTP 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
13.0%
Free cash flow / Revenue

ELTP Quarterly Performance

Quarterly financial performance data for ELITE PHARMACEUTICALS INC /NV/ including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2026 $14.4M $615.8K $-0.01
Q2 2026 $18.9M $615.8K $-0.01
Q1 2026 $18.8M $615.8K $0.00
Q3 2025 $14.4M $615.8K $0.00
Q2 2025 $14.2M $615.8K $0.01
Q1 2025 $9.0M $615.8K $0.00
Q3 2024 $9.3M $305.9K $0.00
Q2 2024 $8.6M $305.9K $0.00

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

ELTP Capital Allocation

Operating Cash Flow
$14.6M
Cash generated from operations
Capital Expenditures
$527.6K
Investment in assets
Dividends
None
No dividend program

ELTP SEC 10-K & 10-Q Filing Analysis

Access official SEC EDGAR filings for ELITE PHARMACEUTICALS INC /NV/ (CIK: 0001053369)

📋 Recent SEC Filings

Date Form Document Action
Feb 17, 2026 8-K form8-k.htm View →
Feb 17, 2026 10-Q form10-q.htm View →
Feb 11, 2026 8-K form8-k.htm View →
Jan 13, 2026 4 xslF345X05/ownership.xml View →
Nov 14, 2025 8-K form8-k.htm View →

Frequently Asked Questions about ELTP

What is the AI rating for ELTP?

ELITE PHARMACEUTICALS INC /NV/ (ELTP) has an AI rating of STRONG BUY with 85% confidence, based on fundamental analysis of SEC EDGAR filings.

What are ELTP's key strengths?

Claude: Exceptional profitability with 50.2% gross margin and 36.0% operating margin indicating strong pricing power and operational efficiency. Strong revenue growth of 48.4% YoY demonstrates robust market demand and successful commercialization.

What are the risks of investing in ELTP?

Claude: Concerning EPS decline of -100% despite flat net income suggests significant equity dilution and share issuance. Flat net income growth (0.0% YoY) despite 48.4% revenue growth indicates margin compression or one-time charges requiring investigation.

What is ELTP's revenue and growth?

ELITE PHARMACEUTICALS INC /NV/ reported revenue of $108.1M.

Does ELTP pay dividends?

ELITE PHARMACEUTICALS INC /NV/ does not currently pay dividends.

Where can I find ELTP SEC filings?

Official SEC filings for ELITE PHARMACEUTICALS INC /NV/ (CIK: 0001053369) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is ELTP's EPS?

ELITE PHARMACEUTICALS INC /NV/ has a diluted EPS of $0.02.

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 rating reflects both perspectives for balanced insights.

Is ELTP a good stock to buy right now?

Based on our AI fundamental analysis in March 2026, ELITE PHARMACEUTICALS INC /NV/ has a STRONG BUY rating with 85% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.

Is ELTP stock overvalued or undervalued?

Valuation metrics for ELTP: ROE of 32.9% (sector avg: 15%), net margin of 24.4% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.

Should I buy ELTP stock in 2026?

Our dual AI analysis gives ELITE PHARMACEUTICALS INC /NV/ a combined STRONG BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.

What is ELTP's free cash flow?

ELITE PHARMACEUTICALS INC /NV/'s operating cash flow is $14.6M, with capital expenditures of $527.6K. FCF margin is 13.0%.

How does ELTP compare to other Healthcare stocks?

Vs Healthcare sector averages: Net margin 24.4% (avg: 12%), ROE 32.9% (avg: 15%), current ratio 7.34 (avg: 2).

Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) 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 24, 2026 | Data as of: 2025-12-31 | Powered by Claude AI