Galmed Pharmaceuticals Ltd. Ordinary Shares (GLMD)

FairStock Score: 32/100 — RISKY

Key Financials

AI Analysis

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

I look at Galmed and see a clinical-stage biopharmaceutical company with three employees, focused on Aramchol for NASH. That is not a business with a durable competitive moat; it is a research bet whose value hinges on Phase III data and regulators. Graham would start with the balance sheet. At the 2026-10-08 close of $3.62, FairStock's price-to-book is 0.21, and debt-to-equity is only 0.01, so the market is pricing the equity at a fraction of accounting book with little leverage. But the income and cash-flow picture is ugly: FairStock shows ROE of -68.21%, ROCE of -30.19%, trailing free cash flow of -$8.5M, and an FCF yield of -204.7% against a $4.2M market cap. A negative P/E of -0.25 merely confirms there are no positive earnings to value. The Piotroski F-Score of 1/9 and Altman Z-Score of -15.46 signal financial distress. There are no filed annual results sufficient for a Lynch category, only 0 years, so I have no multi-year record to judge growth or consistency. The 52-week range of $0.41 to $5.45 shows how violently the market has repriced this micro-cap. The bull case is optionality: if Aramchol succeeds, today's $4.2M valuation could be re-rated. The bear case is that cash burn forces dilutive financing before any commercial payoff, and book value evaporates. I prefer businesses that compound; this is a binary speculation. A low price to book is not a margin of safety when the asset is a drug yet to be approved.

In plain English: Galmed is a tiny biopharmaceutical company with only three employees working on a liver disease drug called Aramchol. It has no meaningful commercial revenue in the data provided, it is losing money, and its financial health scores look weak. At the 2026-10-08 price of $3.62, the stock looks cheap compared with its stated accounting value, but the losses and cash burn make that cheapness risky rather than safe.

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

Data as of 2026-10-08 close · note generated 2026-10-15 · model deepseek-flash

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