Olema Pharmaceuticals Inc. Common Stock (OLMA)

FairStock Score: 26/100 — RISKY

Key Financials

AI Analysis

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

I look for businesses that earn predictable profits and trade at a margin of safety. Olema does not yet fit that mold. It is a clinical-stage biotech with no reported revenue in the filed periods, and its lead asset, palazestrant, is in Phase 3 for ER-positive/HER2-negative breast cancer. The financial record shows losses that are widening: net income was -$96.7M in FY2023, -$129.5M in FY2024, and -$162.5M in FY2025; in fiscal Q2 2026, the quarter ended 2026-06-30, net income was -$63.2M and diluted EPS -$0.61. Trailing free cash flow is -$165.0M, a -28.5% FCF yield on the $579.2M market cap. The balance sheet looks lightly levered with D/E 0.01 and an Altman Z-score of 4.98, but Piotroski is 0/9 and ROE is -52.74%, so operating quality is not proven. At $6.62 on 2026-10-26, P/B is 1.35 and the FairStock score is 26/100; the stock sits near the low end of its $6.24-$36.26 52-week range. There is no moat I can verify because the company has no commercial product, and value depends on trial outcomes rather than earnings. Growth is not revenue growth but rising research spending and losses, with profit growth -44.34%. As a Graham-style investor, I see a speculative clinical option, not a seasoned compounder; the low debt helps, but the cash burn and lack of profits leave no margin of safety in the accounts.

In plain English: Olema is a small healthcare company trying to develop treatments for women's cancers; its main drug is still being tested in late-stage trials. It has no product sales and has been losing money, with cash spending and losses rising, so the business looks financially weak today. At $6.62, the price is far below its 52-week high, but because there are no profits it does not look clearly cheap on current numbers; it is a speculative bet on trial success.

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