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Elite Pharmaceuticals

ELTP
68
Drug Manufacturers - Specialty & Generic · Healthcare
Price
$0.39
-0.01 (-2.26%)
Market Cap
$420.1M
Winston Score
68
Winston is curious
A decent business — some strong pillars, some weaker.

Share count rising — dilution

+12.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.01B (2022) → 1.14B (2026)

Elite Pharmaceuticals is a small drug company that makes generic prescription medicines. It focuses on controlled-release and abuse-deterrent formulations, meaning pills designed to release medication slowly or to be harder to misuse. Its main products include generic versions of pain and attention-deficit medications, sold primarily to wholesalers and pharmacies across the United States.

The company earns money by manufacturing and selling these generic drugs, and it also licenses its drug-delivery technology to other pharmaceutical companies for additional revenue. It operates entirely in the U.S. and, with a market cap around $400 million, is considered a micro-cap business. Its proprietary controlled-release technology gives it a degree of differentiation in an otherwise highly competitive generic drug market. The key growth driver is expanding its product pipeline and securing new licensing deals, but the main risk is pricing pressure in generics, where competition from other manufacturers can quickly erode profit margins.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+78.3% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

+381.8% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$5.7B/ year

Rising (+72004% vs prior year)

>1,000% of revenue

214.3x the sector average (18%)

Investing heavily in future products and technology

Insider Activity

22.4%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$11M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Strong grower

Elite Pharmaceuticals is growing revenue at 78% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
54.1%
Healthy — 54.1% gross margin
Operating Margin
34.9%
Excellent — 34.9% operating margin
ROCE
18.3%
Strong — 18.3% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales YoY
+100.2%
Fast-growing sales (100.2% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
43%
Weak — only 43% of profit becomes cash
FCF Margin
12.3%
Converts sales into free cash efficiently (12.3%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.14
Conservative — low debt load (0.14)
Interest Cover
98.11x
Comfortably covers interest (98.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
10.3x
Attractive valuation — P/E 10.3

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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