Adagene Inc. American Depositary Shares (ADAG)
StalwartFairStock Score: 30/100 — RISKY
Key Financials
| Current Price | $3.5 |
| Market Cap | $248M |
| P/E Ratio | -9.46 |
| ROE | -34.39% |
| Dividend Yield | —% |
| Sector | Healthcare |
Strengths
- Conservative balance sheet with debt-to-equity of just 0.12, providing financial flexibility
Concerns
- Weak Piotroski F-Score of 2/9 suggests deteriorating financial quality across multiple dimensions
- Altman Z-Score of -1.6 places it in the financial distress zone—elevated bankruptcy risk
AI Analysis
Adagene Inc. American Depositary Shares is a micro-cap healthcare company valued at $248 million. Revenue stands at $8 million. From a quality standpoint, Adagene shows weak Piotroski F-Score of 2/9 signaling deteriorating fundamentals and distressed Altman Z-Score of -1.6 warrants caution. Our composite FairStock Score of 30/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.
Bear Case
Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer