Is CorMedix (CRMD) Offering Opportunity After Recent Share Price Pullback?

• If you are wondering whether CorMedix shares offer good value at today’s price, you are not alone. This is especially true with sentiment around the stock shifting over the past few years.
• The share price is at US$11.17, with a small 7 day return decline of 4.0%, a 30 day return decline of 0.8%, a year to date return decline of 8.1%, a 3.3% return over 1 year, a 3 year return of 158.0% and a 5 year return of 29.4%.
• These mixed returns over different time frames have kept CorMedix on the radar of investors who are weighing long term gains against more recent pullbacks. Recent company updates and sector sentiment have provided fresh context for the share price and prompted questions about what is already reflected in the valuation and what is not.
• On our valuation checks, CorMedix scores 5 out of 6. In the next sections we will compare different valuation methods, then finish with a way of looking at valuation that helps tie all of these numbers into a single, clearer story.

Find out why CorMedix's 3.3% return over the last year is lagging behind its peers.

Approach 1: CorMedix Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a company might be worth today by projecting its future cash flows and then discounting those back to a present value.

For CorMedix, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month Free Cash Flow is about $73.9 million, and analyst and extrapolated estimates suggest Free Cash Flow levels in the mid to high $200 million range by 2035, with $241.8 million projected for 2030. Simply Wall St uses analyst forecasts for the earlier years and then extends those projections further out.

Putting all of those projected cash flows together, the DCF model arrives at an estimated intrinsic value of US$72.83 per share, compared with the current share price of US$11.17. On this basis, the stock screens as about 84.7% undervalued.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests CorMedix is undervalued by 84.7%. Track this in your watchlist or portfolio, or discover 885 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for CorMedix.

Approach 2: CorMedix Price vs Earnings

For a company that is generating earnings, the P/E ratio is often a useful shortcut because it links what you pay per share to how much profit the business is producing per share today. It gives you a simple way to compare what the market is willing to pay for those earnings across different companies.

What counts as a “normal” or “fair” P/E usually reflects how the market views a company’s growth potential and risk profile. Higher expected growth or lower perceived risk often comes with a higher P/E, while lower growth expectations or higher risk tend to be associated with a lower P/E.

CorMedix currently trades on a P/E of 5.42x. That is below the Pharmaceuticals industry average of 19.64x and also below the broader peer average of 33.33x. Simply Wall St’s Fair Ratio for CorMedix is 16.54x, which is its own estimate of an appropriate P/E given factors such as earnings growth, industry, profit margin, market cap and company specific risks.

This Fair Ratio can be more useful than a simple industry or peer comparison because it tries to put the company on a like for like footing by adjusting for growth, risk profile, profitability, sector and size. Compared with the current P/E of 5.42x, the Fair Ratio of 16.54x suggests the shares trade below that modelled level.

Result: UNDERVALUED

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1449 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your CorMedix Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which are simple stories you create about CorMedix that connect your view on its business, your assumptions for future revenue, earnings and margins, and the fair value that drops out of those numbers.

On Simply Wall St’s Community page, Narratives give you a clear bridge from “here is what I think happens to this company” to “here is what I think the shares are worth.” They then help you act by letting you compare that Fair Value with today’s market price so you can judge whether the stock looks rich or cheap against your own view.

These Narratives update automatically when new information arrives, such as earnings, real world evidence on DefenCath, Melinta integration progress, or changes in analyst assumptions. This means your story and fair value do not sit still while the news moves on.

For CorMedix, one investor might build a Narrative close to the US$23 high analyst target using stronger earnings and margin assumptions. Another might anchor nearer the US$17 low target with more cautious views, and both can see, in real time, how fresh data shifts their Fair Value relative to the live share price.

Do you think there's more to the story for CorMedix? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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