How does the current valuation (P/E, EV/EBITDA) compare to other royalty‑focused pharma companies? | TXMD (Aug 12, 2025) | Candlesense
TXMD

How does the current valuation (P/E, EV/EBITDA) compare to other royalty‑focused pharma companies?

Valuation snapshot

TherapeuticsMD (TXMD) posted a modest swing to a $0.55 MM net‑income in Q2 2025 (≈ $0.05 EPS). Assuming a current market‑cap of roughly $150 MM and negligible debt, the implied P/E is in the 250‑300 x range (price ≈ $30 × $0.05 EPS). With depreciation/amortisation likely under $1 MM, the EV/EBITDA sits near 150 x.

Peer comparison

Royalty‑focused peers—e.g., Royalty Pharma (RPRX), Hennessy (HNSY), and PAREX—trade at P/E of 30‑50 x and EV/EBITDA of 10‑15 x on comparable royalty‑income models. TXMD’s multiples are therefore 3‑5× higher on P/E and 10‑15× higher on EV/EBITDA than the sector average, indicating a steep valuation premium that is not yet justified by its thin profit base.

Trading implications

The gap suggests the market is pricing TXMD on future royalty growth rather than current earnings. If the company can sustain a clear upward trend in royalty collections and expand margins, the premium may be warranted; otherwise, a price correction is plausible. From a risk‑reward perspective, a short‑to‑cover or tight‑‑stop‑loss long position is advisable: consider a modest short if the stock stalls above $30, but stay long with a protective stop around $25‑$27 to capture any upside if royalty pipelines start delivering stronger, recurring cash flows. The key catalyst will be the next set of royalty‑collection updates and the company’s ability to convert the Q2 profit swing into a sustainable earnings trajectory.

Other Questions About This News

What is the company's guidance on capital expenditures for the remainder of 2025? How does the $0.05 EPS from continuing operations compare to analyst consensus estimates? What were the total revenues and how do they compare to the same quarter last year? What drove the swing from a $1.05 million loss to a $545 k profit? What is the company's cash and cash equivalents balance after Q2? Did TherapeuticsMD provide any guidance for Q3 or full‑year 2025 earnings? What are the projected royalty income streams for the next 12‑18 months? Are there any upcoming royalty or licensing agreements that could affect future cash flows? How does the net margin for the quarter compare to prior quarters and industry peers? What are the key risks highlighted in the MD&A that could impact future earnings? What is the company's debt level and any upcoming maturities? Did the company announce any share buyback or dividend plans? What is the impact of the results on the stock’s technical indicators (e.g., moving averages, RSI)? Are there any pending regulatory or legal matters that could affect the company’s cash flow? How does the earnings per share compare on a diluted basis versus basic? What is the outlook for the company's key royalty assets (e.g., patent expirations, new product launches)? How does the net income from continuing operations compare to net income from discontinued operations? Is there any indication of a potential acquisition or partnership in the pipeline? What is the expected impact of macro‑economic trends on the company’s royalty revenue?