Innoviva Inc. Common Stock (INVA)

FairStock Score: 93/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

At $21.05 on 2026-10-26, Innoviva's $1.5B market cap sits at a FairStock-calculated P/E of 4.88 and P/B of 1.24. That looks statistically cheap, and FairStock's Graham Number of $40.58 implies a 49.09% margin of safety; trailing free cash flow of $180.1M gives an 11.8% FCF yield. But I want to know what normalized earnings power really is. The royalty base is attractive, including RELVAR/BREO ELLIPTA and ANORO ELLIPTA, but it depends on partners and a limited product set. Filed results are lumpy: in fiscal 2025, the year ended 2025-12-31, revenue was $411.3M and net income $271.2M, versus fiscal 2024 revenue of $358.7M and net income of $23.4M; fiscal 2023 net income was $179.7M. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $98.0M and net income $186.6M; in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $119.6M and net loss $83.4M. That swing matters. FairStock-calculated D/E is 0.27, Altman Z is 2.88, ROE is 36.68%, ROCE is 6.95%, and Piotroski is 4/9, suggesting only middling fundamental momentum. FairStock's Lynch rule calls it a slow grower - shrinking, with profit -1.6% a year over five years and revenue 4.1%. So this is a cheap-looking security, not obviously a great compounding business. The moat is narrow and contractual, not wide. I would need confidence that normalized cash flow persists, not just the low multiple.

In plain English: Innoviva is a small biopharma company that earns royalties on respiratory medicines and sells a hospital blood-pressure drug. It has produced high profits and strong cash flow in some periods, but the latest quarter showed a big loss, so results are uneven. At $21.05, the price looks cheap compared with the company's reported earnings and accounting value, though the uneven results make the cheapness less certain.

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

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