Kiniksa Pharmaceuticals International plc Class A Ordinary Shares (KNSA)

FairStock Score: 51/100 — MIXED

Key Financials

Strengths

• Generates $98 million in annual free cash flow (2.9% yield on market cap)
• Solid return on equity of 11.7% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.02, providing financial flexibility
• Altman Z-Score of 10.3 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 65.0% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($11) with negative 288% margin of safety—limited downside protection

AI Analysis

Kiniksa Pharmaceuticals International plc Class A Ordinary Shares is a small-cap healthcare company valued at $3.3 billion. The business generates $678 million in annual revenue with a 2.1% net margin and $98 million in free cash flow. From a quality standpoint, Kiniksa shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 10.3 confirms fortress-level solvency. On valuation, the stock is commanding a steep 57.4x multiple, with trades far above its Graham Number ($11) with no margin of safety. Growth dynamics show revenue growing at 65.0% and profit growth of 259.8%. Our composite FairStock Score of 51/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Kiniksa's 65% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $98 million in annual free cash flow (2.9% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 57x 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