Phathom Pharmaceuticals Inc. Common Stock (PHAT)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

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

As a Buffett/Graham-style investor, I start with whether the business earns money and has durable protection. Phathom sells GI treatments: VOQUEZNA for erosive GERD and related heartburn, and regimens for H. pylori. The commercial traction is real. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $74.3M versus $39.5M in fiscal Q2 2025, and net loss shrank to $17.6M from $75.8M. For fiscal year 2025, revenue was $175.1M and net income was -$221.2M, or diluted EPS -$3.03; fiscal year 2024 revenue was $55.3M with net income -$334.3M, or -$5.29. The direction is better. But the company remains unprofitable in every year shown. FairStock calculations put P/E at -5.56, FCF yield at -6.5%, Altman Z-Score at -5.34, and Piotroski F-Score at 5/9. Those are not comfortable signs for a Graham margin of safety. ROCE is -8.80%, and trailing-twelve-month free cash flow is -$36.9M. At the $7.00 close on 2026-10-13, market cap is $566.3M, near the low end of the $6.52-$18.31 range. A moat might emerge from approved GI brands and prescriber relationships, but it is not yet visible in profits or returns. The computed Lynch category is none because of losses in each of the last four years. Growth is promising; profitability is not proven. I would need consistent positive earnings and cash flow before considering it a bargain.

In plain English: Phathom Pharmaceuticals develops and sells medicines for stomach and digestive problems, including heartburn and a type of stomach infection. Sales are growing quickly—revenue in fiscal Q2 2026, the quarter ended 2026-06-30, was $74.3M—but the company still loses money and has not had a profitable year. At $7.00 on 2026-10-13, the price is far below its 52-week high, and based on continuing losses it looks speculative rather than clearly cheap.

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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