Innoviva Inc. Common Stock (INVA)

FairStock Score: 93/100 — HIGH CONVICTION

Key Financials

Strengths

• Generates $122 million in annual free cash flow (7.0% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 29.1% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.28, providing financial flexibility
• Superior net profit margin of 39.9% indicating pricing power and operational efficiency

AI Analysis

Innoviva Inc. Common Stock is a micro-cap healthcare company valued at $1.7 billion. The business generates $411 million in annual revenue with a 39.9% net margin and $122 million in free cash flow. From a quality standpoint, Innoviva shows solid Piotroski F-Score of 7/9 and healthy Altman Z-Score of 3.1. On valuation, the stock is deeply undervalued on a P/E basis at 7.1x, with offers a 31% margin of safety vs Graham Number of $34. Growth dynamics show revenue growing at 24.8% and profit growth of 707.4%. Our composite FairStock Score of 93/100 reflects strong fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

Innoviva's 25% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $122 million in annual free cash flow (7.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer