Arrowhead Pharmaceuticals Inc. Common Stock (ARWR)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

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

I look for a business I can understand, with durable competitive advantages, disciplined finances, and a price that leaves a margin of safety. Arrowhead is an RNAi drug developer with Phase 3 assets, so the science may be valuable, but the financial record is not yet that of a proven compounding machine. Filed figures show FY2024 revenue of just $3.6M and a net loss of $599.5M, then FY2025 revenue of $829.4M and a net loss of $1.6M, or EPS -$0.01. That swing shows revenue can be very lumpy: fiscal Q1 2026, the quarter ended 2025-12-31, earned $30.8M on $264.0M of revenue, while fiscal Q2 2026 lost $132.7M and fiscal Q3 2026, the quarter ended 2026-06-30, lost $194.3M on $75.3M of revenue. At the 2026-10-13 close of $58.13, FairStock's calculations show a negative P/E of -25.50, P/B of 17.62, ROE of -55.21%, ROCE of -8.10%, debt-to-equity of 2.96, trailing free cash flow of -$75.1M, and FCF yield of -0.9%. Its Piotroski score is 2/9 and Altman Z-score is 2.28. The Lynch category is none because the company lost money in each of the last four years. A Graham investor would call this speculative: no earnings, high price-to-book, negative returns, and cash burn. The bull case rests on Phase 3 success for Plozasiran and Zodasiran; without that, the current $8.2B market cap is difficult to justify on present numbers.

In plain English: Arrowhead Pharmaceuticals develops RNA-based medicines for hard-to-treat diseases, with several programs in later-stage human testing. It has lost money in each of the last four fiscal years, had a $194.3 million net loss in the quarter ended 2026-06-30, and has negative cash flow. At $58.13 on 2026-10-13, the price looks expensive compared with its current profits and assets, so the stock depends heavily on future drug success.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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

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

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