Oramed Pharmaceuticals Inc. Common Stock (ORMP)

FairStock Score: 87/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

I look at Oramed as a speculative biotech, not a classic Buffett compounder. The company is developing ORMD-0801, an oral insulin capsule in Phase III, and has a license agreement with Oravax Medical for oral COVID-19 vaccines. There is no demonstrated commercial moat: FY2025 revenue was just $2.0M, and several quarters report no revenue. Reported earnings have swung positive after losses: FY2024 net loss was $19.1M, or -$0.48 per diluted share; FY2025 net income was $64.0M, or $1.50 per diluted share; fiscal Q1 2026 net income was $38.3M, or $0.91 per diluted share; and fiscal Q2 2026 net income was $78.2M, or $1.84 per diluted share. Yet trailing free cash flow is -$7.1M, ROCE is -3.42%, FairStock's Piotroski F-Score is 2/9, and its Altman Z-Score is 2.07. That tells me the accounting profits are not yet backed by operating cash generation. The balance sheet has no debt, which is a cushion. At the 2026-10-13 close of $4.17, the market cap is $173.5M, P/B is 0.54, and the FairStock Graham Number is $26.71, implying an 84.39% margin of safety. But Graham would ask whether those assets will be spent on trials before they produce earnings. The P/E of 1.01 and 5.29% dividend yield look optically attractive, but with negative FCF they are not trustworthy. FairStock labels it a TURNAROUND after a loss returned to profit. Until profit is recurring and ORMD-0801 clears clinical hurdles, this is a cigar butt with a lottery ticket attached.

In plain English: Oramed is a small healthcare company working on pills that deliver protein drugs, especially an insulin capsule. The underlying business is not yet strong: it has almost no revenue, burns cash, and its recent profits look uneven. At $4.17, the stock looks cheap compared with its accounting value and conservative asset-based math, but that cheapness depends on whether the drug pipeline succeeds and whether reported gains become real cash earnings.

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Data as of 2026-10-13 close · note generated 2026-10-15 · 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