Adial Pharmaceuticals Inc Common Stock (ADIL)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Adial as a Graham-style analyst would: the first question is not whether its science is exciting, but whether there is a proven business. Adial is a clinical-stage biopharmaceutical company with five employees, developing AD04 for alcohol use disorder and other candidates. It reports no revenue in the filed periods I was given, and the computed Lynch category is none because it lost money in each of the last four years. It lost $5.1 million in fiscal 2023, $13.2 million in fiscal 2024, and $8.0 million in fiscal 2025. The quarter ended 2026-06-30 was far worse: a net loss of $52.0 million and diluted EPS of $-11.25. That single loss dwarfs the $8.6 million market cap at the 2026-10-13 close. This is not a compounding machine yet. There is no revenue growth to assess, and the FairStock calculations at the 2026-10-13 close show a P/E of -0.16, P/B of 1.62, and trailing free cash flow yield of -128.9%. The calculations also show ROE of -2011.64% and ROCE of -40.02%. The Piotroski F-Score is 1/9, and the Altman Z-Score is -5.87, signs of deep financial distress. A moat, if any, would depend on clinical success and regulatory exclusivity for AD04, but those cannot be verified from the figures and are binary events. The stock is not cheap in a Graham sense because there are no earnings or stable assets supporting it; it is a speculative call option on clinical trials. Growth is negative in the sense that per-share losses are severe: fiscal 2024 diluted EPS was $-68.01, fiscal 2025 was $-11.93, and the 2026 second quarter was $-11.25. I would need evidence of trial progress, cash runway, and far lower cash burn before calling this anything other than highly risky.

In plain English: Adial is a very small clinical-stage biotech working on a treatment for alcohol use disorder and related conditions. It has no reported revenue, has lost money for years, and a recent quarter showed a large loss. At $3.29 on 2026-10-13, the price looks speculative against those weak numbers rather than clearly cheap or fairly supported by profits.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer