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Elite Pharmaceuticals

ELTP
67
Drug Manufacturers - Specialty & Generic · Healthcare
Price
$0.30
+0.00 (+1.04%)
Market Cap
$323.2M
Winston Score
67
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Strong
Growth
Good
Cash Flow
Mixed
Stability
Exceptional
Valuation
Good

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)

Winston Score History

The full picture

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.

Growth Profile

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

Revenue Growth

-19.5% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+200.0% 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

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$39M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

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

Heavy R&D investment

Elite Pharmaceuticals is putting 3858% of revenue into R&D and that number is rising. That's 214.3x the sector average. And they're generating enough cash to self-fund it.

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

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
41.7%
Healthy — 41.7% gross margin
Profit after running costs
Operating Margin
23.3%
Excellent — 23.3% operating margin
Return on the money invested
ROCE
32.9%
Exceptional — 32.9% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth
Sales YoY
+33.7%
Fast-growing sales (+33.7% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
34%
Weak — only 34% of profit becomes cash
Spare cash per sale
FCF Margin
12.4%
Converts sales into free cash efficiently (12.4%)

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

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Stability

What it owes vs what it owns
Debt / Equity
0.04
Conservative — low debt load (0.04)
Covers its interest
Interest Cover
115.14x
Comfortably covers interest (115.1x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
6.0x
Attractive valuation — P/E 6.0

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
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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