COMPASS Pathways Plc American Depository Shares (CMPS)

FairStock Score: 16/100 — RISKY

Key Financials

AI Analysis

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

As a Buffett/Graham investor, I want a business whose earnings I can estimate and whose price offers a margin of safety. Compass Pathways does not fit that mold. It is a clinical-stage biotech with no reported revenue, developing COMP360 for treatment-resistant depression and other mental-health uses. It has lost money in each of the last four years; in FY2025, the year ended 2025-12-31, net income was -$287.9M and diluted EPS -$3.08. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was -$253.8M and diluted EPS -$1.88. Trailing free cash flow is -$161.1M, a -10.5% FCF yield per FairStock. FairStock calculations at the 2026-10-26 close of $11.05 show P/E -2.92, P/B 17.82, ROE -319.07%, ROCE -29.08%, Piotroski 0/9, Altman Z -0.26, and a FairStock score of 16/100. Debt/equity is 0.65, but the business is consuming capital. The apparent moat is an investigational therapy, not a proven franchise: there is no revenue to reveal pricing power, no repeat earnings, and no demonstrated competitive advantage. Revenue growth is N/A, and profit growth is -560.87% in the supplied data. The 52-week range of $4.88-$15.87 and beta of 2.55 show how sentiment-driven the stock is. This is a drug-development story: upside hinges on Phase III data and approvals, while downside is cash burn and dilution. At a $1.5B market cap, the price is speculative relative to today's losses and book value. I would need clinical proof and a clearer financial runway before calling it an investment rather than a speculation.

In plain English: Compass Pathways is a small biotech testing a psilocybin-based therapy for depression and other mental-health conditions. It has no reported revenue and has lost money in each of the last four years, so the business looks weak financially. At $11.05 on 2026-10-26, its $1.5B market value looks expensive compared with its losses and accounting value, and the outcome depends on future trial success.

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Data as of 2026-10-26 close · note generated 2026-10-28 · 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