Liquidia Corporation Common Stock (LQDA)

FairStock Score: 33/100 — RISKY

Key Financials

Strengths

• Generates $10 million in annual free cash flow (0.3% yield on market cap)
• High return on equity of 28.2% demonstrating efficient capital deployment
• Altman Z-Score of 5.2 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 3054.7% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($1) with negative 2537% margin of safety—limited downside protection

AI Analysis

Liquidia Corporation Common Stock is a small-cap healthcare company valued at $3.3 billion. The business generates $288 million in annual revenue with a 5.1% net margin and $10 million in free cash flow. From a quality standpoint, Liquidia shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 5.2 confirms fortress-level solvency. On valuation, the stock is commanding a steep 332.9x multiple, with trades far above its Graham Number ($1) with no margin of safety. Growth dynamics show revenue growing at 3054.7% and profit growth of 137.9%. Our composite FairStock Score of 33/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Liquidia's 3055% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $10 million in annual free cash flow (0.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 333x 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