# Eton Pharmaceuticals (ETON.US)

Canonical: https://gigainvestors.com/s/ETON

Analysis as of: 2026-10-16T07:28:22.481Z. Financial observations: FY2017–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $51.33 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 9 years

- Years with declining revenue: 2

- Years with a net loss: 9

- Operating margin variation: 2.37×

Chart: Operating margin; fiscal year observations.

- FY2019: -19.40×

- FY2020: -695.15×

- FY2021: -0.07×

- FY2022: -0.39×

- FY2023: -0.04×

- FY2024: -0.07×

- FY2025: 0.00×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -31.0%

- ROIC, second-lowest year: -465.5%

- Years with nonpositive capital: 3

- Capital spending / revenue: 13.1%

- ROIC including acquisitions, ten-year median: -269.6%

- Typical minus recent gross margin: -356.8 pp

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -46.6%

- FY2018: -31.0%

- FY2019: -465.5%

- FY2020: -616.0%

- FY2021: -11.9%

- FY2022: -197.9%

- FY2023: -4.5%

- FY2024: -5.2%

- FY2025: 0.2%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$16M

- Net income, five-year total: -$20M

- Return on incremental invested capital: 34.2%

- Working capital / revenue, annual change: 194.7 pp

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$2.0M

- FY2022: -$10M

- FY2023: -$810K

- FY2024: -$2.7M

- FY2025: -$890K

### management: fail

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -46.6% vs -4.5%

- Per-share earnings: -1.99 to -0.15 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 5.1%

- Market cap gain: $418M

- Cumulative retained earnings: -$67M

- Diluted shares, 5-year annual growth: 5.1%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value change: $1.84

- Per-share value, starting three-year median: -$1.99

- Per-share value, ending three-year median: -$0.15

- Buyback history: 0 years

- Debt-funded buybacks: No

- ROIC, first three-year median: -46.6%

- ROIC, last three-year median: -4.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: -$2.00

- FY2018: -$1.99

- FY2019: -$1.03

- FY2020: -$1.33

- FY2021: -$0.08

- FY2022: -$0.36

- FY2023: -$0.04

- FY2024: -$0.15

- FY2025: -$0.17

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -16.4%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 52.4%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.18×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -18.1%

- FY2018: -16.2%

- FY2019: -1.7%

- FY2020: -21.4%

- FY2021: 10.1%

- FY2022: -55.3%

- FY2023: -24.4%

- FY2024: -6.3%

- FY2025: -16.4%

## Holders

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Up 1116% since Oct 2023 · "Eton Pharmaceuticals jumps on strong Q2 print, 2026 guidance" (seekingalpha.com, Aug 2026) · sales +104.9%

Story as of 2026-10-16T09:58:43.093Z; price observation 2026-10-15.

- 2025-08-08: Eton targets $80M revenue run-rate in Q3 2025 as product launches accelerate ([seekingalpha.com](https://seekingalpha.com/news/4482847-eton-targets-80m-revenue-run-rate-in-q3-2025-as-product-launches-accelerate?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-08-14: Eton Pharmaceuticals jumps on strong Q2 print, 2026 guidance ([seekingalpha.com](https://seekingalpha.com/news/4633062-eton-pharmaceuticals-jumps-on-strong-q2-print-2026-guidance?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2024–2025

sales +104.9%; source https://www.sec.gov/Archives/edgar/data/1710340/000143774926009059/eton20251231_10k.htm; observed 2026-03-19.

- FY2017: $0 

- FY2018: $0 

- FY2019: $959K 

- FY2020: $39K 

- FY2021: $22M 

- FY2022: $21M 

- FY2023: $32M 

- FY2024: $39M 

- FY2025: $80M 

### Gross margin · FY2025

gross margin 53.5%; source https://www.sec.gov/Archives/edgar/data/1710340/000143774926009059/eton20251231_10k.htm; observed 2026-03-19.

- FY2019: 52.8% 

- FY2021: 88.0% 

- FY2022: 67.4% 

- FY2023: 66.6% 

- FY2024: 60.0% 

- FY2025: 53.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in drug manufacturers specialty & generic; annual sales are USD 80 million.

- Source: https://www.sec.gov/Archives/edgar/data/1710340/000143774926009059/eton20251231_10k.htm (filed 2026-03-19); FY2025: revenue 79950000; grossProfit 42740000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 53.5% to 66.6% during 2023–25; it lost 31% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); FY2023: grossProfit / revenue = 66.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); FY2024: grossProfit / revenue = 60%.

- Source: https://www.sec.gov/Archives/edgar/data/1710340/000143774926009059/eton20251231_10k.htm (filed 2026-03-19); FY2025: grossProfit / revenue = 53.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); 9-year return on capital observations [[2017,-0.4656636438582028],[2018,-0.30998707371782686],[2019,-4.654668989547038],[2020,-6.159818809318378],[2021,-0.1190694626474443],[2022,-1.9791932059447983],[2023,-0.045101776905024184],[2024,-0.05195841564098668],[2025,0.0018213256484149855]]; median -0.30998707371782686. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 1 of 9 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); Dividend observations: [[2017,0],[2018,1048000],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 4.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); ETON.US SharesStats.PercentInsiders = 4.89 percentage points; cache date 2026-10-15.

### What the price says

The price is 17.3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-19); Closing price 51.33 USD; reporting-to-trading FX 1; FY2025 annual sales per share 2.971265686712645; price multiple 17.275466219512193. FY2025 cash earnings/share -0.033076003266719875. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2018-11: $6.35 per share

- 2018-12: $6.12 per share

- 2019-01: $6.10 per share

- 2019-02: $7.94 per share

- 2019-03: $8.00 per share

- 2019-04: $7.36 per share

- 2019-05: $8.10 per share

- 2019-06: $7.90 per share

- 2019-07: $6.09 per share

- 2019-08: $5.59 per share

- 2019-09: $6.32 per share

- 2019-10: $5.95 per share

- 2019-11: $6.40 per share

- 2019-12: $7.20 per share

- 2020-01: $6.66 per share

- 2020-02: $5.40 per share

- 2020-03: $4.10 per share

- 2020-04: $5.18 per share

- 2020-05: $4.60 per share

- 2020-06: $5.45 per share

- 2020-07: $6.68 per share

- 2020-08: $7.84 per share

- 2020-09: $7.90 per share

- 2020-10: $7.29 per share

- 2020-11: $7.94 per share

- 2020-12: $8.13 per share

- 2021-01: $8.92 per share

- 2021-02: $7.91 per share

- 2021-03: $7.32 per share

- 2021-04: $8.68 per share

- 2021-05: $7.06 per share

- 2021-06: $6.16 per share

- 2021-07: $5.14 per share

- 2021-08: $5.27 per share

- 2021-09: $5.04 per share

- 2021-10: $5.76 per share

- 2021-11: $3.90 per share

- 2021-12: $4.29 per share

- 2022-01: $3.70 per share

- 2022-02: $3.76 per share

- 2022-03: $4.36 per share

- 2022-04: $3.53 per share

- 2022-05: $3.04 per share

- 2022-06: $2.62 per share

- 2022-07: $2.68 per share

- 2022-08: $2.26 per share

- 2022-09: $2.10 per share

- 2022-10: $2.55 per share

- 2022-11: $3.02 per share

- 2022-12: $2.82 per share

- 2023-01: $3.48 per share

- 2023-02: $3.73 per share

- 2023-03: $3.85 per share

- 2023-04: $3.63 per share

- 2023-05: $3.96 per share

- 2023-06: $3.49 per share

- 2023-07: $2.82 per share

- 2023-08: $4.50 per share

- 2023-09: $4.17 per share

- 2023-10: $4.22 per share

- 2023-11: $3.54 per share

- 2023-12: $4.38 per share

- 2024-01: $4.67 per share

- 2024-02: $4.45 per share

- 2024-03: $3.75 per share

- 2024-04: $3.50 per share

- 2024-05: $3.55 per share

- 2024-06: $3.29 per share

- 2024-07: $3.60 per share

- 2024-08: $4.60 per share

- 2024-09: $6.00 per share

- 2024-10: $8.47 per share

- 2024-11: $13.53 per share

- 2024-12: $13.32 per share

- 2025-01: $17.68 per share

- 2025-02: $15.70 per share

- 2025-03: $12.98 per share

- 2025-04: $16.85 per share

- 2025-05: $18.89 per share

- 2025-06: $14.25 per share

- 2025-07: $14.16 per share

- 2025-08: $17.31 per share

- 2025-09: $21.73 per share

- 2025-10: $18.01 per share

- 2025-11: $16.15 per share

- 2025-12: $16.91 per share

- 2026-01: $15.01 per share

- 2026-02: $16.99 per share

- 2026-03: $24.68 per share

- 2026-04: $24.12 per share

- 2026-05: $30.45 per share

- 2026-06: $36.20 per share

- 2026-07: $46.42 per share

- 2026-08: $60.44 per share

- 2026-09: $51.49 per share

- 2026-10: $51.33 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:34:04.141Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1710340/000143774926009059/eton20251231_10k.htm); period 2025-12-31, filed 2026-03-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Dan Davidowitz](https://gigainvestors.com/pcm): 45,379 ETON shares; USD 1,643,000 reported position value; 0.01% of portfolio; add; quarter 2026 Q2.

# ETON — Eton Pharmaceuticals Inc.

Held by 1 investor · USD 1,643,000 total · 2026 Q2 · reported price USD 36.21 (split-adjusted).
Page: https://gigainvestors.com/s/ETON

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Dan Davidowitz (https://gigainvestors.com/pcm) | USD 1,643,000 | <0.1% | add +50.57% |

## Total held by quarter

- 2026 Q1: USD 744,107 · 1 holder · USD 24.69
- 2026 Q2: USD 1,643,000 · 1 holder · USD 36.21