CPRXNEUTRAL

Return on Equity (ROE)

24.5%

Higher than 81% of Healthcare sector peers

Updated 188h ago

Sector Performance

81th percentile

CPRX

24.5%

Sector Median

8.9%

Sector Avg

30.6%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' equity; a 22.5% ROE means Catalyst Pharmaceuticals earned $0.225 for every dollar of equity.

This is well above the healthcare sector median of 11.1%, placing the company in the 74th percentile among peers. The metric shows no available trend because year-over-year change, quarter-over-quarter change, and last eight quarters of data are all marked N/A; only a single current value of 22.5% is provided. With a high current level but zero trend history, the investment risk is elevated by the lack of context, making it difficult to assess whether performance is sustainable or a one-off event. The combination of a strong ROE relative to sector median and absent trend data does not clearly support or contradict the NEUTRAL verdict; the verdict appears justified as the high level alone is insufficient for a bullish or bearish stance given no directional evidence.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about CPRX?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does CPRX's Return on Equity (ROE) compare to its sector?

CPRX's Return on Equity (ROE) of 24.5% compares to a Healthcare sector median of 8.9%, placing it in the 81th percentile.

Who are CPRX's closest peers by Return on Equity (ROE)?

The closest Healthcare peers by Return on Equity (ROE) include: ZBH (6.1%), TECH (5.3%), RVTY (3.2%), BIO (2.5%), BEAM (-5.8%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.