Corcept Therapeutics (NASDAQ:CORT) Is Posting Promising Earnings But The Good News Doesn’t Stop There

editorial-team@simplywallst.com (Simply Wall St)

Mon, May 12, 2025, 3:27 AM 3 min read

Corcept Therapeutics Incorporated's (NASDAQ:CORT) caller net study didn't connection immoderate surprises, with the shares unchanged implicit the past week. Our investigation suggests that shareholders mightiness beryllium missing immoderate affirmative underlying factors successful the net report.

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Many investors haven't heard of the accrual ratio from cashflow, but it is really a utile measurement of however good a company's nett is backed up by escaped currency travel (FCF) during a fixed period. To get the accrual ratio we archetypal subtract FCF from nett for a period, and past disagreement that fig by the mean operating assets for the period. The ratio shows america however overmuch a company's nett exceeds its FCF.

As a result, a antagonistic accrual ratio is simply a affirmative for the company, and a affirmative accrual ratio is simply a negative. That is not intended to connote we should interest astir a affirmative accrual ratio, but it's worthy noting wherever the accrual ratio is alternatively high. Notably, determination is immoderate world grounds that suggests that a precocious accrual ratio is simply a atrocious motion for near-term profits, mostly speaking.

Corcept Therapeutics has an accrual ratio of -0.18 for the twelvemonth to March 2025. That implies it has precise bully currency conversion, and that its net successful the past twelvemonth really importantly understate its escaped currency flow. To wit, it produced escaped currency travel of US$177m during the period, dwarfing its reported nett of US$132.5m. Corcept Therapeutics' escaped currency travel improved implicit the past year, which is mostly bully to see.

That mightiness permission you wondering what analysts are forecasting successful presumption of aboriginal profitability. Luckily, you tin click present to spot an interactive graph depicting aboriginal profitability, based connected their estimates.

Happily for shareholders, Corcept Therapeutics produced plentifulness of escaped currency travel to backmost up its statutory nett numbers. Based connected this observation, we see it imaginable that Corcept Therapeutics' statutory nett really understates its net potential! And the EPS is up 29% annually, implicit the past 3 years. At the extremity of the day, it's indispensable to see much than conscionable the factors above, if you privation to recognize the institution properly. So portion net prime is important, it's arsenic important to see the risks facing Corcept Therapeutics astatine this constituent successful time. Case successful point: We've spotted 1 informing motion for Corcept Therapeutics you should beryllium alert of.