iRadimed Corporation Common Stock (IRMD)

FairStock Score: 54/100 — MIXED

Key Financials

Strengths

• Generates $15 million in annual free cash flow (1.3% yield on market cap)
• High return on equity of 25.0% demonstrating efficient capital deployment
• Altman Z-Score of 50.7 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 17.0% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($17) with negative 415% margin of safety—limited downside protection

AI Analysis

iRadimed Corporation Common Stock is a micro-cap healthcare company valued at $1.1 billion. The business generates $86 million in annual revenue with a 7.5% net margin and $15 million in free cash flow. From a quality standpoint, iRadimed shows Altman Z-Score of 50.7 confirms fortress-level solvency and strong 25% ROE. On valuation, the stock is commanding a steep 47.2x multiple, with trades far above its Graham Number ($17) with no margin of safety. Growth dynamics show revenue growing at 17.0% and profit growth of 25.2%. Our composite FairStock Score of 54/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

iRadimed's 17% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $15 million in annual free cash flow (1.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 47x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. 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