Puma Biotechnology Inc Common Stock (PBYI)

FairStock Score: 73/100 — STEADY

Key Financials

Strengths

• Generates $31 million in annual free cash flow (8.0% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 28.0% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.22, providing financial flexibility
• Revenue growth of 27.7% demonstrates strong top-line momentum

Concerns

• Altman Z-Score of -4.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Puma Biotechnology Inc Common Stock is a micro-cap healthcare company valued at $382 million. The business generates $228 million in annual revenue with a 5.9% net margin and $31 million in free cash flow. From a quality standpoint, Puma shows solid Piotroski F-Score of 7/9 and distressed Altman Z-Score of -4.6 warrants caution. On valuation, the stock is attractively valued at 12.1x earnings, with trades above its Graham Number with a negative 26% margin. Growth dynamics show revenue growing at 27.7% and profit growth of -30.4%. Our composite FairStock Score of 73/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

Puma's 28% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $31 million in annual free cash flow (8.0% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. 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