ELTP (Elite Pharmaceuticals) Financial Strength: 9 (As of Jun. 2026) — 13% Above Median

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ELTP Elite Pharmaceuticals Inc ELTP
60 GF Score
Price $0.31
GF Value $0.51
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Elite Pharmaceuticals Financial Strength?

Elite Pharmaceuticals ELTP -13.53% 60 Financial Strength is 9 as of Jun. 2026, which is 13% above its 10-year median of 8.00. GuruFocus rates ELTP with a GF Score™ of 60/100 and a GF Value™ of $0.51 (Significantly Undervalued). The stock has 2 warning signs investors should review.

Elite Pharmaceuticals has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Elite Pharmaceuticals Inc shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Elite Pharmaceuticals's Interest Coverage for the quarter that ended in Jun. 2026 was 103.14. Elite Pharmaceuticals's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.04. As of today, Elite Pharmaceuticals's Altman Z-Score is 8.33.


Elite Pharmaceuticals  (OTCPK:ELTP) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Elite Pharmaceuticals has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Elite Pharmaceuticals Financial Strength Related Terms


ELTP vs EOLS, EBS, AQST: Financial Strength Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Elite Pharmaceuticals's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Elite Pharmaceuticals Financial Strength vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Elite Pharmaceuticals's Financial Strength distribution charts can be found below:

* The bar in red indicates where Elite Pharmaceuticals's Financial Strength falls into.


ELTP
60GF Score
Elite Pharmaceuticals Inc ELTP
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Elite Pharmaceuticals Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Elite Pharmaceuticals's Interest Expense for the months ended in Jun. 2026 was $-0.1 Mil. Its Operating Income for the months ended in Jun. 2026 was $7.5 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was $4.4 Mil.

Elite Pharmaceuticals's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*7.529/-0.073
=103.14

The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Elite Pharmaceuticals Inc has enough cash to cover all of its debt. Its financial situation is stable.

2. Debt to revenue ratio. The lower, the better.

Elite Pharmaceuticals's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.171 + 4.401) / 129.42
=0.04

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Elite Pharmaceuticals has a Z-score of 8.33, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 8.33 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 9 mean?
Elite Pharmaceuticals (ELTP) has a Financial Strength of 9 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Elite Pharmaceuticals and its competitors. This is 13% above median its historical median of 8.00. Over the past decade, Elite Pharmaceuticals' Financial Strength has ranged from 3.00 to 9.00.
Is Elite Pharmaceuticals' Financial Strength too high?
Elite Pharmaceuticals' current Financial Strength of 9 is 13% above median its 10-year median of 8.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 9.00. Overall, Elite Pharmaceuticals has a GF Score™ of 60/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Elite Pharmaceuticals' Financial Strength compare to EOLS and EBS?
Elite Pharmaceuticals' Financial Strength of 9 can be compared against companies in the Drug Manufacturers industry. Historically, Elite Pharmaceuticals' own Financial Strength has ranged from 3.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Drug Manufacturers company?
A good Financial Strength depends on the Drug Manufacturers industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Elite Pharmaceuticals and its competitors. Elite Pharmaceuticals's current Financial Strength is 9, which is 13% above median its own 10-year median of 8.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elite Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Elite Pharmaceuticals (ELTP) is currently considered Significantly Undervalued. The stock's GF Value™ is $0.51, compared to a current price of $0.31 — trading 39.2% below its estimated fair value. The current Financial Strength is 9, which is 13% above median its 10-year median of 8.00. Elite Pharmaceuticals' overall GF Score™ is 60/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Elite Pharmaceuticals (ELTP), the current Financial Strength is 9 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Elite Pharmaceuticals (ELTP) Overvalued in 2026?

Based on GuruFocus' analysis, Elite Pharmaceuticals stock appears to be undervalued. The current stock price of $0.31 is trading 39.2% below its estimated GF Value™ of $0.51. GuruFocus considers Elite Pharmaceuticals to be Significantly Undervalued.

Key valuation signals for ELTP:

  • Financial Strength: 9 (13% above median its 10-year median of 8.00)
  • GF Value™: $0.51 vs. price of $0.31 (39.2% below fair value)
  • GF Score™: 60/100 with 2 warning signs

No single metric tells the full story. See the ELTP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Elite Pharmaceuticals Business Description

Address 165 Ludlow Avenue, Northvale, NJ, USA, 07647
Elite Pharmaceuticals Inc is a pharmaceutical company. It is principally engaged in the development and manufacture of oral, controlled-release products, using proprietary know-how and technology. The company's operating segment includes Abbreviated New Drug Applications (ANDA) and New Drug Applications (NDA). It generates maximum revenue from the ANDA segment. The company focuses on developing pain management products; manufacturing a line of generic pharmaceutical products with approved Abbreviated New Drug Applications; developing additional generic pharmaceutical products; development of other products in its pipeline including the products with its partners; and commercialization of new products.
60GF Score

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Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$0.31
Price
$0.51
GF Value