Establishment Labs Holdings Inc. Common Shares (ESTA)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

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

I look for businesses that earn consistent profits and sell at a discount to intrinsic value. Establishment Labs is a medical device company with a real product—Motiva breast implants—and growing sales. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $67.5M, up from $51.3M in fiscal Q2 2025, the quarter ended 2025-06-30. But net income was -$11.7M, or diluted EPS -$0.39. The pattern is persistent: fiscal 2025, the year ended 2025-12-31, revenue was $211.1M with net income of -$51.1M; fiscal 2024, the year ended 2024-12-31, revenue was $166.0M with net income of -$84.6M; fiscal 2023, the year ended 2023-12-31, revenue was $165.2M with net income of -$78.5M. That means losses in each of the last four years, and the Peter Lynch category given is none for that reason. A brand may create surgeon loyalty, but a durable moat is hard to prove before the company produces owner earnings. Trailing free cash flow is -$41.6M, and the FairStock FCF yield is -2.4%; the FairStock Altman Z-score is 1.87, and Piotroski is 4/9. At the 2026-10-13 close of $58.45, FairStock shows P/B of 81.18 and ROE of -175.30%. Debt/equity of 12.20 is not the main problem; the lack of profit is. Market cap is $1.7B, so buyers are paying a rich price for future profits. Growth is encouraging, but Graham’s margin of safety is missing. Until profits and cash flow turn positive, this remains a speculative turnaround rather than a value investment.

In plain English: Establishment Labs makes breast implants and related medical devices used in plastic and reconstructive surgery. Sales are growing, but the company still loses money and spends more cash than it brings in. At the 2026-10-13 close of $58.45, the stock looks expensive relative to those losses and its asset value.

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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