Fortress Biotech Inc. Common Stock (FBIO)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

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

I look at Fortress Biotech as a small, asset-rich but uneven biopharmaceutical company. It sells drugs such as Emrosi, Qbrexza, Accutane and Amzeeq, yet has only 78 employees and a market value of $62.0M at the 2026-10-13 close of $1.95. Revenue has been modest: FY2025 revenue was $61.2M, up from $55.1M in FY2024; FY2023 was $59.7M. More important, FY2025 net income was $6.8M after FY2024's $46.0M loss and FY2023's $60.6M loss, which fits the FairStock Lynch category of TURNAROUND. But the profit is lumpy. In fiscal Q1 2026, the quarter ended 2026-03-31, net income was $110.4M and diluted EPS was $2.82; in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $17.8M, net income was -$468,000, and diluted EPS was -$0.08. That makes the trailing P/E of 0.70, P/B of 0.40 and ROE of 115.98%—all FairStock calculations—hard to treat as normal earning power. The asset side is tempting: FairStock's Graham Number is $17.53, offering an 88.88% margin of safety at the close, and TTM free cash flow is $125.8M, a 203% FCF yield. Yet ROCE is -7.76%, Piotroski is 3/9, Altman is -1.77, and EV/EBITDA is -0.52. Debt is modest with D/E of 0.26, but operating returns are weak. I would need several quarters of recurring profit and cash flow to trust the apparent cheapness. The margin of safety may be real, but the earnings quality is not yet proven.

In plain English: Fortress Biotech is a small drug company that sells skin and acne treatments. Its business has been uneven: it lost money in the latest reported quarter, but it had a big profit earlier in the year and a small profit for all of fiscal 2025 after losses in the two prior years. At the 2026-10-13 closing price of $1.95, the stock looks cheap against the company's assets and stated earnings, but those numbers may not be steady, so the price could reflect real risk rather than a simple bargain.

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 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