BeOne Medicines Ltd. American Depositary Shares (ONC)

FairStock Score: 39/100 — MIXED

Key Financials

Strengths

• Generates $727 million in annual free cash flow (2.2% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.25, providing financial flexibility
• Altman Z-Score of 4.7 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 32.8% demonstrates strong top-line momentum
• Established organization with 12,000 employees providing operational scale

Concerns

• Trades significantly above Graham Number ($13) with negative 2223% margin of safety—limited downside protection

AI Analysis

BeOne Medicines Ltd. American Depositary Shares is a mid-cap healthcare company valued at $33.4 billion. The business generates $5.3 billion in annual revenue with a 1.2% net margin and $727 million in free cash flow. From a quality standpoint, BeOne shows solid Piotroski F-Score of 6/9 and healthy Altman Z-Score of 4.7. On valuation, the stock is commanding a steep 121.9x multiple, with trades far above its Graham Number ($13) with no margin of safety. Growth dynamics show revenue growing at 32.8% and profit growth of 143.8%. Our composite FairStock Score of 39/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

BeOne's 33% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $727 million in annual free cash flow (2.2% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 122x 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